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In Today’s Article, We’ll Discuss The Three Most Common Final Expense Insurance Scams
Plus, you’ll learn how to avoid these scams, and how to source the best final expense insurance you can qualify for.
Here’s An Overview Of Today’s Topics:
- The Scams Are A Plenty!
- Scam #1: No Questions Asked Life Insurance
- Scam #2: Low Cost Term Insurance For Seniors
- Scam #3: Overpriced Final Expense Coverage
- Burial Insurance Rates, Age 40 to 90
- How To Ensure You Get A Great Deal On Your Final Expense Insurance Coverage
The Scams Are A Plenty!
If you’re like most of my 1500+ client base, you see endless junk mail and television solicitations for final expense life insurance.
Typically, the offer for coverage sounds simple enough.
Insurance premiums are affordable. And as long as they fit your budget, you get quality final expense coverage to pay for your funeral expenses.
Here’s the problem.
Many of these programs “hide” the fine-print that deem many as inferior and potentially problematic for you.
And fine print is NEVER a good thing!
Scam #1 – No Questions Asked Life Insurance
If you receive mail and watch television, chances are you’ve seen dozens of no-questions asked life insurance products.
Moreso, there are numerous, brand name insurance companies trying to convince you to buy their no-questions asked life insurance.
And it sounds simple enough. You don’t have to answer any health questions. Everyone is approved for coverage! And, the coverage doesn’t cancel, nor does price go up.
Sounds awesome, right?
So what could possibly be the problem with a plan like this?
Inadequate Coverage For The First Two Years
Upon reading the fine print, you will find that NONE of these programs provide first day full coverage for natural causes of death!
In fact, dying from natural causes within the first two years of the policy provides your beneficiary only the premiums you paid in, plus a marginal level of interest.
Let me give you an example.
After 12 months, you suffer a massive stroke, and die immediately.
Upon calling the insurance company, your beneficiary discovers she will not receive the $10,000 death benefit.
Instead, the insurance company explains that your beneficiary only receives the premiums you paid, plus an extra 10%.
What’s the grand total to your loved ones…?
A shabby $660!
Let me ask you this.
Do you think that’s enough to pay for a burial these days?
It sure as heck isn’t!
An actual story from a life insurance client in Georgia
Sadly, I am basing this story off of my first final expense insurance client.
His father purchased a life insurance plan from a well-known no-questions-asked insurance company.
You probably seen them advertise on TV everyday.
When his father suddenly passed away from a stroke, my client filed the death claim, discovering that only several hundred dollars would be returned, instead of the original $10,000 death benefit.
Sadly, my client had to mortgage his own house to pay for his father’s burial.
And it gets worse.
His father could could have qualified for first-day full coverage, had he had worked with the right final expense insurance agent.
In conclusion, beware any final expense insurance companies offering either no-questions asked life insurance, or guaranteed acceptance life insurance.
Rest assured. You will NOT have natural death coverage for 2 years.
Scam #2: Low-Cost Term Insurance For Seniors
Most of the time, you see these offers sent through the mail.
And, upon reading about the offer for coverage, it suggests that your price is locked in place.
Also, the pricing seems more competitive than other companies you’ve seen, too.
And, there’s only three health questions to answer, making it seemingly simple to apply.
Sounds easy enough! What could be the problem?
Do You Plan On Dying BEFORE or AFTER Age 80?
These term insurance plans are what I call “terminating” insurance plans.
Term insurance is defined as coverage that lasting for a temporary period of time.
In the case of these senior term insurance plans, the vast majority of them are designed to cancel you out at 80.
And no, it doesn’t matter if you’re healthy. It doesn’t matter if you’re on your deathbed.
Once you hit 80, they give you the boot!
And you do NOT get any of your money back, either.
Why Term Insurance Is A Problem
And insurance companies are smart enough to know that half of the people alive today are going to live past 80. And the other half will die before 80. This bares out statistically.
Simply put, the insurance companies know they’ll “win” the game in most circumstances.
They plan on pocketing all your cash, without paying your loved ones a death benefit.
Did I Mention Term Insurance Pricing Goes Up, Too?
To add insult to injury, senior term insurance plans typically increase in price every five years as you age.
Let me share a story with you that describes why this is such a bad deal.
Several years back, I was visiting a nice lady in her early 80s.
She worked as a dry cleaner until a year earlier, as she had open heart surgery, causing her to finally retire.
She had life insurance and could easily pay the bill.
However, all that changed once she lost her work income.
While she worked, she could afford her insurance plan, despite her company raising prices several times.
Now with her income cut back severely, she couldn’t afford the pricing anymore, and was considering other final expense insurance options.
How bad was her term price increase?
Originally, she took out the insurance plan in her fifties. She had enough money for the $40,000 plan and it’s $60 monthly premium.
Fast forward 25 years. After several price increases, she was now paying $300 a month at 83 years old!
And remember. This lady could only survive on her meager Social Security check, and couldn’t afford to this huge premium anymore.
Unfortunately, the last I heard from her, she decided to drop her insurance.
Picture yourself in her shoes. She had paid for coverage all those years.
And while it was fine to start, when she needed it the most, it was too late.
She had no coverage in her early 80s, and spent tens of thousands of dollars for something that wasn’t going to do her any good in her time of biggest need.
Beware Term Insurance
Luckily, most people reading this will recognize that term insurance is not the appropriate solution to pay for final expenses.
However, some seniors will want to term insurance anyway.
And I’m fine with it, as long as you understand what you’re getting.
Unfortunately, these junk mail insurance companies purposely hide how these programs work.
They lull you into a false sense of confidence that their broken plan somehow is an appropriate insurance choice.
If you HATE the idea of possibly wasting thousands of dollars on final expense insurance, and you’d like to get a plan that never cancels, give me a call at 888-626-0439 or send me a message. I can show you plans that are designed never to cancel, and never have a price increase, too.
Scam #3 – Overpriced Final Expense Coverage
Not so much of a product scam, but proceed with caution if you are ever pressured to buy an overpriced final expense insurance program.
There are many final expense insurance companies designed to overcharge you on premiums, relative to what you could get otherwise.
For example, I have saved countless people tremendous amounts of money, all while giving them the same exact coverage in exchange for averaging a $200 to $300 annual difference in premium savings.
Why is this a big deal?
Because many reading this are on a fixed income.
And when you’re on a fixed income, you’re fixed!
You only get so much a month. And it’s your job to make sure that what you pay for is a good use of your income.
Burial Insurance Rates, Age 40 to 90*
Rates For $5,000 In Burial Insurance
Rates For $10,000 In Burial Insurance
Rates For $15,000 In Burial Insurance
Rates For $20,000 In Burial Insurance
Rates For $25,000 In Burial Insurance
*Burial insurance premiums are subject to underwriting, based on rates as of 8/20/2018, from state-regulated life insurance companies offering final expense burial whole life insurance protection. Understand that in order to potentially qualify, you must submit an application to see if you’re eligible. Rates are subject to change. Give Buy Life Insurance For Burial a call at 888-626-0439 now to see what program you may qualify for.
How To Ensure You Get A Great Deal On Your Final Expense Insurance Coverage
The best thing you can do is to ask if your agent is an independent broker.
This means that the agent represents a variety of insurance carriers.
Independent insurance brokers select the carrier that gives you the best combination of coverage and price.
Nevertheless, make sure you ask for verification that the agent is a broker.
For example, ask to see proof of multiple companies the insurance agent works with. He should have brochures available.
Or he can show you online at your State’s Department Of Insurance website which carriers he has active appointments with.
I work as a broker in the final expense Insurance business. I believe it’s my duty to offer my clients the best value of coverage at the best price.
If you’re looking for a quote on a good price to final expense insurance plan, call 888-626-0439, or send me a message.