As you approach the end of your life, concerns about how your funeral may be paid for could arise. Don’t worry, you have options to ensure that the event is covered. Life insurance and funeral insurance are products you can purchase to guarantee that there will be money available to pay for your funeral and other end-of-life expenses.
But if you’ve never heard of funeral insurance, you’re probably wondering how it’s different from life insurance. Here’s the answer.
What Is Life Insurance?
Life insurance is a type of insurance policy that guarantees a cash payment to the beneficiaries upon the death of the insured. Life insurance policies can offer death benefit payments exceeding $1 million, though you must be in good health condition to qualify. For this reason, life insurance companies require you to take a medical exam during the application process in most cases.
Though if you cannot pass the medical exam, you have another option.
What Is Funeral Insurance?
Funeral insurance is a form of life insurance that has fewer restrictions on who can join. The plans work the same way as traditional life insurance policies, except they don’t require a medical exam. For this reason, funeral insurance is sometimes called simplified issue life insurance. While the plans don’t require an exam, you still must answer some health questions during the application process. This isn’t always the case, though. Guaranteed issue funeral insurance doesn’t have any health requirements.
Guaranteed Issue Funeral Insurance
There is a form of funeral insurance that accepts all applicants. It’s called guaranteed issue funeral insurance. These plans don’t require a medical exam and they don’t ask any medical questions. Anyone can qualify, but you should expect lower death benefits than a simplified funeral insurance plan. Premiums will also be higher because high-risk individuals cost more to insure.
What’s The Difference?
The core difference between funeral insurance and traditional life insurance is that funeral insurance is easier to qualify for. Because of this, funeral insurance policies generally have much lower amounts of coverage and higher costs. Still, with a funeral insurance plan, you gain the security of knowing your final expenses will be paid for. If you are unable to qualify for life insurance, it makes sense to choose this plan.
Shop For Funeral Insurance
If you were unable to qualify for traditional life insurance, we can help you secure a final expense insurance plan. Just give Fidusure a call at (647) 567 4702. One of our agents would be glad to assist you.