Life Insurance Buying Tips

Are Final Expense Policies Too Expensive?

Filed under: life insurance — Alston @ 8:02 pm April 30, 2011

Final expense or burial life insurance policies can be an important part of an individual’s financial assets. This is true for some but not for all.

Although these policies are typically very inexpensive they may not be a bargain for many seniors. Why? These insurance plans can be much more expensive per dollar of coverage when compared to other types of life insurance policies.

In most cases these are modified benefit policies. In many cases, this means that if you die in the first year or two after purchasing your policy, your family will only not receive the full death benefit. Often the benefit paid to the beneficiaries of these policies is limited to the premiums paid into the policy.

Often the advertisements for these types of life insurance policies focus on the ease of qualifying for coverage. When a policy is easy to qualify for, the insurer is likely to charge more for that policy.

This is similar to loans that are too easy to qualify for. The bank is likely to charge a higher interest rate if it isn’t allowed to investigate your finances.

Life insurers who don’t check into your medical records are also likely to charge more for life insurance. Before purchasing a no medical exam life insurance policy get quotes for traditional life insurance policy.

You may be pleasantly surprised by the life insurance options available to you even if you are not in perfect health. You may be pleasantly surprised by the low cost.

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