After being involved in hundreds of phone conversations and face to face meetings with family’s that have suffered a loss, and hearing the conversations between family members about the financial burden left upon them, we knew there was a need for this type of policy in our industry.
When a family is more concerned about how they are going to pay for the service than what type of service their loved one deserves there is a problem. A Final Expense Policy will take that entire burden away from a person’s family, allowing them the time to celebrate and mourn their loss.
We respond by asking them – “Do you have a wife/husband/partner or children?” when they always say yes, we then point out to them that they have been taking care of those family members their whole life, why stop when you die? The most UNSELFISH act a person can make is not leaving a financial burden on their family when they die. A Final Expense Policy does just that.
These two policies are virtually the same with a few minor differences.
A Preneed Policy can only be sold by a licensed funeral director. Virtually all policies are irrevocable. That means once the money is put into the policy the money cannot be taken out without a death certificate.
A Final Expense Policy can be sold by any licensed Life Insurance agent. These policies are not irrevocable and do have a cash value associated. Cash can be accessed prior to death.
There are advantages to both types of policies and at the end of the day they both do the same thing, Pay for one’s final expenses. Figuring out which one is best for you please consult with both a funeral director and a Final Expense agent.
Most Final Expense companies have very lenient underwriting parameters. They understand that this type of policy is meant for people who are not in the best of health. People who have health conditions are approved every day.