The death benefit and premiums on your policy cannot change once you have them. A whole life policy, in contrast to a term policy, does not end when you reach a certain age.
Additionally, a whole life policy accumulates cash value against which you can borrow money throughout your lifetime. When you pass away, your surviving beneficiaries will receive less money if any loans remain unpaid.
You won’t have to go through a medical exam or give the insurance company access to your medical records if you apply for final expense insurance. However, you will need to respond to a few health-related questions. Not everyone will be eligible for a policy with coverage that begins on day one because of the health questions.
The premiums for final expense insurance, like those for any other kind of life insurance, are determined by your age and health; They may also be based on your gender if allowed by state law.
For a given amount of insurance, your rates will be higher the older you are and the less healthy you are. Due to their shorter average lifespan, men typically pay higher rates than women. Additionally, if you do not smoke, you may be eligible for a lower rate depending on the insurer.
From birth until the age of 85, some insurance companies offer policies that cover final expenses. However, depending on the policy and the insurer, you may not be able to apply until you are at least 45 years old or 85 years old. The biggest passing advantage you can choose might be more modest the more established you are.
When you’re under 55, policies may cover up to $50,000, but after 76, they only cover up to $25,000. Some insurers provide applicants of any age with the same maximum death benefit.
