What is a final expense insurance policy?
Final expenses insurance, explained
Final expense insurance , also known as guaranteed acceptance life insurance, helps your loved ones pay for immediate expenses after you pass away, including costs for a funeral, memorial or celebration of life, burial or cremation, or any outstanding bills you may leave behind.
Many Canadians aged 50 and up don’t plan for what will happen after they pass away. That’s easy to understand since funerals and bills aren’t usually something most of us want to think about. Some of the other costs that are associated with final expenses include purchasing of a casket or urn, burial or cremation costs, flowers, catering, obituary, death certificate and funeral service expenses such as funeral home and director services.
However, final expenses can add up fast and securing coverage for those costs can take the burden off your loved ones during an already stressful time. That way, they can focus on celebrating your life and honouring your memory – not on how they’ll pay for it.
What does simplified underwriting mean?
Simplified issue life insurance offers a straightforward coverage option for those who wish to avoid full medical underwriting, which includes exams, bloodwork, needles, or invasive questions about their health and lifestyle.
Simplified underwriting generally means you do not need to participate in the medical examination and instead answer a simple questionnaire (containing basic health questions)..
A simplified issue policy also provides the option for quicker coverage without the need for more stringent qualifications. For example, Canadians looking for a quick and easy insurance application with little chance for hiccups or delays should consider simplified issue life insurance.
However, they should keep in mind this type of coverage involves a higher monthly premium and does not offer as flexible terms, coverage, and options like other traditional insurance policies.
What does no medical life insurance mean?
No medical life insurance means you do not have to do a medical exam or produce bloodwork to qualify for your policy. No medical life insurance is another term for simplified life insurance.
Simplified or no medical life insurance offers coverage to those in unique circumstances. They can include:
- Health Problems: Those with past health problems, previously declined by standard life insurance policies, in poor health, or hard to insure.
- Hazardous Job: Those working in dangerous jobs and professions like roofing or logging.
- Medical Testing: Those who don’t like needles, medical exams, or sharing their medical records.
- Time Restraints: Those wishing to get coverage quickly.
Do I need final expense insurance?
Anyone who wants to make sure their family can pay any final expenses they leave behind could consider final expenses insurance. It’s a positive step towards financially protecting your loved ones during a difficult time.
After you pass away, there are immediate costs to take care of – and your loved ones may not have the cash flow to handle them. Even a basic funeral, burial or cremation can cost thousands of dollars. These costs aren’t avoidable. Estate administration tax can also be a financial cost your loved ones don’t expect.
All of this comes at a time when the people you care about most have faced a personal loss.
Final expenses insurance can help ease that pressure. Depending on your coverage amount, your beneficiaries could get up to $25,000 quickly after you pass away, to help deal with immediate costs.