Losing a loved one is a heartbreaking experience for anyone and an additional financial burden can make the situation worse. After the sad demise of their beloved, everyone wishes some peace to grieve the loss and final expense plans are designed to do the same. Different insurers are offering insurance plans to people with different health conditions and helping them with the best plan available. This article talks about the various plans made to manage funeral related expenses and help people get remembered in the desired way.
- Level Policies
The offered plans are among the most frequently bought plans for providing the instant coverage to the insured. As soon as an insured buy a plan, they become eligible to receive all the benefits mentioned in their policy agreement. Under these plans, the buyers are supposed to pay a fixed monthly premium and the insurer will arrange the funeral whenever they pass away. Usually, the applicant needs to undergo the medical examination to determine their fitness. Applicants with a pre-existing condition might be offered a more expensive plan or they might be denied the coverage. These plans are great for people with sound health conditions as they receive cheap final expenses quotes from different providers.
- Graded Policies
Graded plans are designed for people with minor health conditions that include but isn’t limited to Parkinson’s, liver disease, systemic lupus and Chronic obstructive pulmonary disease (COPD). Usually, applicant diagnosed with these diseases don’t qualify for the level funeral policies and graded plans offer the desired cover. However, these plans come with a 2-year waiting period that means they have to wait for 2 years to avail all the benefits. For deaths during the first and second year of buying the plan, the insurer helps the loved ones with 30 and 70 percent of the total coverage, respectively.
- Modified Policies
These are the plans much similar to the graded plans but are offered to applicants with serious health conditions that include heart diseases, angina, aneurysm, cancer, and alcoholism. Different providers have their own set of diseases covered under modified plans and applicants need to inquire about the same. They undergo a medical examination to prove their insurability and depending on the health status, they are offered a cheaper or expensive plan. These plans also come with a 2-year waiting period but for the deaths in the first year, they return all premiums paid if the insured passes away before that period. Also, for deaths in the first and second year; they pay plus an additional 10 and 20 percent of the premiums, respectively.
- Guaranteed Issue (GI) Policies
As the name says, these plans ensure every applicant gets a plan for themselves or their loved ones. These plans come with a more expensive premium as the applicants don’t need to undergo any medical examination. GI plans are great for people with severe medical conditions as they can be sure of getting a plan, without being asked about their health conditions. Similar to modified plans, these plans also return the premiums if the insured passes away before 2 years. Along with that, they provide an addition 20 percent of premiums for the same.