What is the Ideal Age to Purchase Final Expense Insurance?
While you’re planning your future, we tend to overlook our final expense costs. That’s totally understandable as it’s a difficult reality that we have to face and plan for. However, there is a specific type of insurance meant to protect your family from the financial burden of your funeral expenses.
Final Expense insurance is designed to cover the costs associated with your funeral, burial, and other end-of-life expenses. The costs creep up quickly and are increasing each year. While there is no doubt that final expense insurance is crucial, a common question arises: What is the right age to buy final expense insurance?
Understanding the Dynamics of Final Expense Insurance
Before diving into the optimal age for purchasing final expense insurance, it is important to understand the nature and purpose of this unique form of coverage. Final expense insurance, also known as burial insurance or funeral insurance, is a specialized life insurance policy designed to cover the expenses associated with a person's death. These may include funeral services, burial plots, cremation costs, travel to the cemetery, flight (if you passed while on vacation), flowers, celebration of life events, and even outstanding medical bills (which can be significant!).
The Nuances of Final Expense Insurance
Unlike traditional life insurance policies that offer a lump sum, face amount that can be used for several purposes, final expense insurance is specifically meant to address the financial aspects of one's end-of-life needs. It provides a specific amount to cover funeral costs, allowing families to grieve without worrying about unexpected financial strains during an emotionally difficult time.
The Ideal Age Range for Purchasing Final Expense Insurance
Determining the ideal age is contingent on various factors. Let's explore the recommended age brackets to make an informed decision.
Early Planning: Age 50-65
Many financial advisors would recommend that the optimal time to get final expense insurance is between the ages of 50 and 65. This is when you are generally in good health, making it easier to qualify for coverage without facing significant premiums. In addition, securing a policy during these years allows for the accumulation of cash value over time, which you can borrow against.
Midlife Considerations: Age 66-75
If you missed the 50-65 window, the age range of 66 to 75 remains a viable period to purchase final expense insurance. While premiums may be slightly higher due to age, getting coverage during this stage can still be cost-effective compared to waiting until later years when health concerns may escalate.
Late-stage Planning: Age 76 and Above
While it is never too late to secure final expense insurance, waiting until the age of 76 or older may result in significantly higher premiums. Additionally, certain health conditions may limit the available coverage options. Either way, if you have not yet purchased this insurance, it’s still valuable as it will ease the financial burden on surviving family members.
3 Key Considerations When Picking Final Expense Coverage
1. Coverage Amount
When selecting a final expense insurance policy, identifying an appropriate coverage amount is important. Consider factors such as anticipated funeral costs, outstanding debts, and the financial needs of your dependents. In addition, with rising inflation, costs will significantly increase with each passing year.
2. Medical Underwriting
Most final expense insurance policies involve a level of medical underwriting. While policies without a medical exam exist, understanding the implications of your health on premiums is crucial. Securing coverage earlier may result in more favorable rates.
3. Comparing Policies
Not all final expense insurance policies are created equal. It is essential to compare offerings from different insurance providers, considering factors like coverage terms, premium rates, and policy flexibility. Work with a Pivotal Life Insurance agent who will walk you through the process, do the price shopping for you, and help answer all of your questions.
In conclusion, the question of the right age to buy final expense insurance is subjective and depends on your respective circumstances. Early planning (between 50 - 65) is often recommended, but midlife and late-stage considerations are viable as well. The key is to assess your specific situation, health status, and financial goals to make an informed decision.
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About Pivotal Life Insurance
Pivotal Life Insurance is a family owned, independent insurance agency that focuses on income protection and family security through Life Insurance products (Term Life, Whole Life, Final Expense), Mortgage Protection, and Annuities. With a range of product offerings and insurance carrier partnerships, we accommodate the varying needs of our clients through resources provided by the nation’s top rated carriers.
Although we are headquartered in South Florida with a branch in Maryland, we service most of the United States as our agents are licensed throughout the country. Pivotal Life Insurance is one of the fastest-growing agencies and we pride ourselves in putting you, our clients, first.
Insurance Is Pivotal. Family & legacy are worth protecting. Cherish what’s important.
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