Funerals can attract significantly high costs, which can create unexpected financial problems for the family. The most appropriate way to safeguard your loved ones from these high costs is to have final expense insurance. Having life insurance ensures your family can cater to the funeral expenses without any problem. One of the types of life insurance to get is final expense and burial insurance.
Final expense insurance, also known as burial insurance, helps to cover burial expenses such as a headstone, cremation, or burial costs. It can also cover any outstanding legal, credit card, or medical costs. Your beneficiaries can use the money for other purposes, such as settling property taxes or even going on a vacation. Your beneficiary will get a death benefit averaging $2,000-$35,000. There is no restriction on how they can use the money after your death.
Burial insurance is also known as final expense insurance, which is designed to cater for your final expenses. If you want to put your family at ease after your death, you need this kind of insurance. It is a type of whole-life insurance that has small death benefits and will take care of funeral costs and other expenses.
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Primarily there are three types of burial insurance. These are:
If you are looking for a quick insurance policy, consider the simplified issue policy. The insurance company will approve the policy after answering a few health-related questions. It is the best for people looking to secure burial insurance as fast as possible. The insurer will also not demand a medical exam. Ideally, you will have coverage after a few days, and your beneficiaries can get a death benefit from $5,000-$100,000. The only drawback is that the premiums are high since it is considered a high-risk type of insurance.
In the guaranteed issue insurance, your insurer will not require you to undergo medical evaluation or even ask health questions. The policy is considered a high-risk one and will attract higher premiums. Also, the death benefits will not be available to the beneficiaries before the lapse of a specific period. In case you pass away before the lapse of that period (usually 26-36 months), your beneficiary will receive a limited benefit payout. But if accidental death occurs, your loved ones will receive full benefits.
This is a special type of insurance. You will need to make a contract with your preferred funeral service provider. The policy requires you to select several services and products that your funeral provider will offer during your funeral. In this policy, your beneficiaries will not receive any death benefit, but the payout is paid directly to the funeral provider.
Below are some of the advantages conferred to an individual who purchases the California final expense program:
Funeral insurance is inflation-protected. If the funeral expenses have shot up when you die, your loved ones will not have to pay the extra amount.
Life insurance's death benefits are not subject to income or estate tax. Thus your loved ones will receive benefits that are tax-free.
You are required to pay from $30 depending on the insurer you choose. This insurance cover is the most affordable available in the market. You don't have to worry about making large contributions to your insurer.
Funeral policies payout is much faster compared to other insurance policies. The payout will cater to the funeral expenses and even pay any debts that are outstanding. Your family will not have to shoulder high debts for your burial.
The waiting period for the death benefits is significantly low, from 30-180 days. This offers so much convenience for the policyholders.
The final expense insurance California is mostly designed for people who are 50 years and older and have minimum coverage amounts. Most insurers offer an average of $1,000-$25,000, but some can offer more than that.
Below are some of the expenses catered for by this life-enhancing insurance policy:
Printing for your memorial
Applying for California final expense program is quite straightforward, and you will not require to undergo a medical exam. If you opt for guaranteed life insurance, the insurance company will not even ask any medical questions. Since you don't require any medical exam, you can qualify for this insurance regardless of your health.
In the level benefit policy, your beneficiaries will get the same payout whether you die immediately or several years later. For instance, in case you die, your beneficiaries will receive a fixed amount of benefits.
The modified benefit policy is the best to obtain a high amount of death benefits. In this policy, the beneficiary will receive a lower amount in the first 3-5 years, while in the subsequent years, the premiums will be higher.
In return of premium benefits (ROP), you will receive a refund of your premiums if you don't die during a stipulated term. In the ROP death benefit, you will get 100% of all of your premiums, while other insurers will offer a partial return.
Yes, you can. After you purchase final expense insurance California, the insurer requires you to designate beneficiaries who will receive the death benefits after your demise. You are free to select one or multiple beneficiaries; there are no rules that restrict the people you can choose.
You can also change beneficiaries with time, for instance, after a divorce. If you decide to choose minors as your beneficiaries, you will also need to select a legal guardian or trust who will provide them with the benefits after you pass away.
You can choose anyone as your beneficiary. Remember, a beneficiary can either be a trust, charity, business, or person. If you decide to select a person, it can be either a spouse, friend, child, or any associate.
Remember, there are two main types of beneficiaries;
A primary beneficiary–This is your first choice, who will receive your benefits after you pass away.
A contingent beneficiary–This is your secondary beneficiary, who will only receive the mortality benefits if your primary beneficiary passes away. You can, for instance, name your spouse as the primary beneficiary. But in the event, you pass away together, the contingent one will receive the death benefits
Choosing your estate as a beneficiary should be your least priority, as there is need of probate to decide who will benefit. The process will take time and can also attract huge tax consequences. Thus it will take long for your loved ones to get the benefits.
You can either use a revocable or irrevocable trust as a beneficiary for your insurance. A revocable trust will offer protection to your assets as you age, and you can choose to change them at any time. An irrevocable one cannot be changed, and you will require a court order to make the change. A trust is ideal when you want to protect your benefits and preserve for your kids, especially minors.
Most opt to choose their spouse as the primary beneficiary of their death benefits. But in case you divorce, you can always change that and name another person.
If your child is still a minor, some insurance companies will not allow you to name them as beneficiaries. In this case, you could:
Name the child's legal guardian
Select a custodian
Create trust for your child
Securing final expense insurance requires you to pay very low premiums. The premiums can start from $30-$53 per month. The premiums you pay depend on your age, law, gender, and the insurance company you select. Some of the benefits of the final expense insurance include:
Will help your family pay for burial expenses after your death
Quite affordable as it has a low coverage amount
Build a certain cash value; thus, you can borrow from it
Coverage is certain
The death benefits can help to pay for mortgage or credit card debt
Premiums are standard
Below is an easy-to-understand table on the recent monthly and annual cost as provided by some of the best insurance companies in California. This table also provides you with a brief detail on what each of the mentioned company is best at when it comes to its provision of the final expense insurance California coverage.
|Insurance Company||Cost per Month||Cost per Year||Best For|
|Ethos||$13-$30||$156-$360||Customers who want affordable and easily accessible California burial insurance|
|AARP||$38-$53||$456-$636||People who are over 50 years old and looking for a reputable company that offers competitive prices for their life insurance policies|
|Fabric||$10-$20||$120-$240||Individuals that are looking for final expense insurance that are affordable and does not require you to undergo a medical exam|
|USAA||$15-$25||$180-$300||Military members looking for affordable types of final expense insurance coverage from a reputable company|
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A final expense insurance is crucial for you and your loved ones. But you need to be careful when selecting an insurance company. You need one that is licensed, reputable, and guarantees death benefits. There are multiple available in the market. Here, we discuss some of the best available:
You can conveniently purchase insurance covers online
A straightforward application process
No need for a medical exam
Have outstanding customer service
Offers limited policy insurance
Ethos was established in 2016 to offer whole life and term life insurance policies. Applying for their insurance policies only takes 10 minutes, and you will qualify without having to undergo any medical exam. The company makes use of information such as your drug prescription or your family medical history to check your rates and eligibility.
Best for: Customers who want affordable and easily accessible California burial insurance.
Average cost: $13-$30 per month
Our rating: 10/10
Provides a variety of insurance goods
Offers regular member discounts
It is a reputable company
Limited to individuals who are 50 years and above
AARP offers a wide range of insurance policies. The company most targets senior adults and has over 37 million members. Their life insurance policies are only available to people who are 50 years and above. The company offers competitive prices for all its customers.
Best for: People who are over 50 years old and looking for a reputable company that offers competitive prices for their life insurance policies.
Average cost: $38-$53 per month
Our rating: 10/10
A straightforward application processes
No medical exam is needed
Wide range of insurance policy options
Only offers online
The Fabric insurance company was launched in 2017 and sells life insurance policies through a mobile app or its online site. The process of applying an insurance coverage is simple and will only take 10 minutes. They have a wide array of term lengths, and you don't have to undergo a medical exam.
Best for: Individuals that are looking for final expense insurance that are affordable and does not require you to undergo a medical exam.
Average cost: $10-$20 per month
Our rating: 8/10
Outstanding customer service
Affordable premium rates
Military insurance products
You can apply online for the insurance policy online
It may not be the best fit for non-military members
USAA is designed specifically for military members and their families, but other people can also access insurance policies. You can get either whole or term life policies from this insurance company. It is a reputable insurance company with lower premiums and a great customer satisfaction rating compared to its competitors.
Best for: Military members looking for affordable types of final expense insurance coverage from a reputable company.
Average cost: $15-$25 per month
Our rating: 8/10
If you are worried about how your family will handle your burial expenses in the event that you pass on, it is important to have final expense insurance coverage. A good insurance cover will give your family peace of mind about how the funeral costs will be catered for. It is important to choose an insurer carefully to get the best death benefits and coverage. You should also check for the payout method that is most appropriate for you.
Lonnie Bell Insuranker
Policy Type: Business Insurance
Company name: Employers Insurance
Use anyone except Employers. Period. They are non-transparent and shameful. After I complained long enough to warrant a call from a supervisor, the supervisor called back from a PRIVATE NUMBER (no caller ID), left a message that they are not reversing their decision (without any communication with me), and failed to leave a phone number for me to call back. She was hiding! They also fact find via email and phone calls, which is terrific for speed and communication. However, after setting a precedence of email or phone calls, they send time sensitive information via email, without any heads up... they are hoping you miss it and forfeit via expiration. Evil policies. Go elsewhere.
This place is an absolute joke of a company and should be ashamed of the way they conduct business. I was hurt on the job at the end of July and it took them just shy of 7 weeks to issue out a paycheck to me. Yes the amount was back dated but still. Not many have the luxury of not receiving a paycheck for almost 2 months. To top it all off, the original adjuster marked me down for the wrong state which caused a problem from the get go, I've had 3 different adjusters now since each one can't seem to figure out the simplicity of my claim. All my paperwork which includes, my job, house, and drs visits all are from the same state and city but yet some how I have been filed under a completely different state 1500 miles away. They do not answer your phone calls or emails no matter how many you leave. I've had to escalate my frustrations to the supervisors of each of these individuals in order to even get some kind of response. I've had more communication and information given to me about my claim from the customer service representatives then the actual adjusters.......... please tell me how that works?! A serious overhaul needs to happen here in order to serve your clients the way they deserve to be taken care of. 10/10 do not recommend this company to a single soul on earth
I have never had the displeasure of working with a more incompetent and disrespectful person in my life. I’m an injured worker and the adjuster that was assigned to my case was named Carrie Furgeson. In the past 6 weeks that I’ve been injured and out of work I have only been able to get ahold of her twice, not for lack of trying. I have left countless voicemails, countless emails, and she ignores them all. When I am finally able to get ahold of her I’m greeted with terrible customer service. She is rude, she talks over me and I’m hardly able to get a word in edgewise. She spelled my name wrong on my documents even after I spelled it for her properly countless times, this caused a whole new issue with my bank. I have bill collectors from the hospital calling me demanding payment and Carrie Furgeson won’t do a single thing to help, or to get them paid. All of my documentation is in Colorado, my job is in Colorado, my address is in Colorado, all my Dr offices and appointments have been in Colorado and Carrie still managed to hold my claim because she wasn’t sure what state she needed to file it under. It’s been 6 weeks since my Injury and my company still hasn’t received the wage paperwork to fill out so they can get me my correct wages. When she’s not ignoring me she’s answering my questions with “I don’t know” well I don’t know how she got this job, because apparently she doesn’t know anything about it. She is a disgusting morose individual inside and out and I genuinely wish her the worst in all of her future endeavors. I highly recommend you don’t use this company. Please if you are a business owner and your looking into this company please don’t use them. I’m sure they have the cheapest payment and that’s why companies use them in the first place, but you will be doing your employees a grave disservice by forcing them to venture into this absolute dumpster fire of a company. I would rate 0/5 if possible but 1 was the lowest I was allowed.
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