The goal of life insurance planning is to take care of your family in the most effective and secure way. The objective when purchasing life insurance is to accomplish this in the most cost efficient, clear, and convenient way. We have engineered this exact objective into our “Prudent Buyer” process for you over the next few steps.

Using our technology, our counselors have turned this once-frustrating and confusing situation into a clear, convenient, and even enjoyable pathway to understand your options and put your coverage in place. Just by simply progressing through the following steps you will be guided through the entire process in a way that has been engineered for your optimal results.

Some of the critical aspects that will be covered are:

• Securing the Best Price
• Determining Suitability
• Ensuring Certainty and Security
• Service, for You and Your Family

10.5 Reasons to Have a
Final Expense Plan

1. Funeral costs are expensive
Funeral costs have been on the rise for as long as there have been funerals. Caskets and cemetery plots are just the beginning. Ceremony fees, transportation, headstones, even clergy donations can all add up. In 2014, the National Funeral Directors Association calculated that the average cost of a funeral was $8,343.
2. Funerals aren't the only final expenses
Funerals may be the most top-of-mind final expense, but many times, they’re not the only one. Household utility bills and outstanding car or home loans may have to be paid. Credit card balances, medical bills and other unplanned financial expenses are also factors that you may have to consider.
3. Final expenses can effect your will planning
You may have created a will or estate plan without considering final expense costs. Only now is it becoming apparent that final expenses can require a lot financially from loved ones. A life insurance policy may make sense and the cash benefit your beneficiary receives can help cover some financial costs left behind such as every day costs or even estate taxes.
4. You may be able to use life insurance funds in advance
There are many medical costs in the final months or years of life that may not be covered by Medicare or supplemental insurance. If your life insurance is a permanent policy, also known as whole life insurance, that builds cash value over time, you may be able to access this cash value to help pay these bills.
5. No-medical-exam life insurance is available
If you’re between the ages of 50 and 80, you may qualify to purchase up to $50,000 in permanent life insurance with no medical exam. The application is simple. Your acceptance is based on your answers to just three health questions and other details you may be asked to provide. Once you’re approved, there’s no waiting period. Benefits start on the first day of coverage and can last your entire life.

Mistake #1: Purchasing through the mail
The #1 most costly mistake people make when buying final expense and life insurance is… via mail order. Purchasing through the mail is no doubt easy and convenient but the risks are tremendous. Often, when you buy through the mail it is difficult to understand what you are getting. Brochures are vague and fine print in abundant. On the other hand, when you buy through a license professional has its advantages. The agent can sit down with you to help you understand your policy, answer your questions, and provide sound advice that applies to YOU.  
Mistake #2: Waiting Periods  
Most plans that are purchased via mail have a 2-3 year waiting period before the policy is in full effect. That means, if the insured should die in the first 2 or 3 years, the beneficiary will only receive, as a death benefit, what the owner paid into the policy plus a very small percentage (usually 10% or less). Why do companies do this? They do it because when you buy through the mail, they don’t know if the applicant is healthy or not. The person applying for coverage could be terminally ill, therefore guaranteeing they will loose money on the policy and companies don’t like guaranteed loss. Therefore they make everybody wait 2-3 years.  
Mistake #3: Buying plans with increasing premiums  
Many unsuspecting seniors have fallen prey to this type of policy. They buy it at an unbelievable low rate and then suddenly the monthly payment begins to increase. Sometimes it takes several years before this begins and at first glance the increase does not seem significant. As time goes on it gets worse and soon… they are unable to continue with the policy because their premiums are too high. Increasing premiums are often found in mail order and term policies. They can increase in all different time periods as well. Most mail order policies increase every 5 years while most traditional term policies increase every 10 or 20 years. As a senior, generally speaking, you should avoid these types of policies; however, THERE ARE TIMES WHEN THIS TYPE OF POLICY IS APPROPRIATE AND IN THE BEST INTEREST OF THE CLIENT.  
Mistake #4: Coverage Reductions  
As mentioned earlier, the prices of funerals go up 3% every year. So why would a company give a policy with a death benefit that decreases? Imagine having a $10,000 policy and thinking your final expenses are taken care of; then on your 75th birthday you receive a letter from your company stating that your coverage will be reduced to only $5,000. How frustrating, but it happens all the time. Now that is an expensive mistake.  
Mistake #5: Coverage Cancellations  
This is by far one of worst and most inconvenient surprises people find on their existing policies. Many are lead to believe that they will have their final expense and life insurance policy until the day they die; however, it doesn’t always work out that way. Many policies only provide coverage to a certain age (usually 80 years) and once you complete that age… the insurance company sends them a lovely ‘Dear Jane’ letter saying their “coverage has been terminated under the terms and conditions of the policy.” When this happens, many times you don’t get ANY money back. So you paid in all that money and you receive nothing in return. Although it doesn’t seem fair, if the policy states it in the terms and conditions, they can legally do it.  
Mistake #6: Accidentally Buying Accidental Insurance  
Many are surprised to find out that accidental insurance and death insurance are two different things. Always remember, accidental policies ONLY pay in the event of an accidental death. If you die from natural causes such as heart disease or old age, then your beneficiary receives NOTHING. Accidental insurance is icing on a cake, it’s nice to have but not necessary. It is more important to have regular final expense or life insurance because it will pay regardless of cause of death. On the other hand, accidental policies rarely pay death benefits. Coverage is so inexpensive that companies will stop at no end to avoid paying a death claim.  
Mistake #7: Not working with somebody they trust  
All of these foul follies can be avoided if you simple work with somebody who is knowledgeable and trustworthy. You need somebody who is willing to give it to you straight, so there are no surprises at time of death. She/he should be licensed, experienced, and represent an established company with a good track record and a high S & P rating.

1. You have a specific health condition. For example, someone who has cancer or has had a heart attack recently might get declined for a traditional life insurance policy. There are, however, people who get declined for life insurance for health reasons simply because they applied with the wrong insurance company. Not every life insurance company deals with high-risk life insurance, so if you do have a health condition, such as diabetes, I recommend that you work with a high-risk life insurance agent that can help figure out what the best course of action is to get you approved for life insurance. If you can’t get approved for a traditional policy, there might be alternatives, such as a graded death benefit policy.

2. You participate in high-risk activities. While most insurance companies will insure scuba divers, for example, it all depends on the type of diving you do (open water vs cave diving), the amount of times you dive a year, where you dive and how deep you dive. If you travel internationally, or live abroad for a certain time of the year, some insurance companies will not want to insure you. Actively deployed military personnel may have a hard time getting approved for insurance, unless you are working with specific insurance companies.

3. There are specific financial reasons. To get approved for life insurance, there has to be financial justification. For example, someone earning $25,000 per year would most likely not qualify for a $1,000,000 life insurance policy, since you can typically get coverage of anywhere between 10-30 times your annual income, depending on your age. If you don’t have an income, but your spouse does, you can typically get as much coverage as your spouse. If you don’t have income and can’t financially justify the need for life insurance, you might get declined for a life insurance policy.

4. You’ve filed for bankruptcy. If you’ve filed for a Chapter 7 bankruptcy, you will typically get declined for coverage until the proceedings have been discharged for at least 12 months. If, however, you are in the midst of a Chapter 11,12 or 13 bankruptcy proceeding, you might be able to qualify for coverage if you are making regular debt payments.

5. You’ve had a DUI (driving under the influence). If you have had more than three DUIs in the last 10 years, every insurance company would decline you. However, if you have one or two DUIs over the last 10 years, some insurance companies will decline you while others may not. If you have been declined due to a DUI, it is possible you applied with the wrong insurance company. If you currently abuse drugs or alcohol, you will get declined for life insurance. If however you have been drug free for three years or more, or have stopped abusing alcohol for over two years, you should be able to get approved for a life insurance policy.

6. You have a criminal record. The difference between an approval and a decline is typically dependent on a couple of factors. First, how long it has been since you were convicted, and second what kind of conviction it was. If you have had multiple felonies, you will likely get declined. If, however, you have had one felony, or one or two misdemeanors, you might be able to get approved for coverage, depending on how long ago your probation ended.

If you find yourself in any of the above situations, working with a high-risk life insurance specialist is the key to your best chance of getting approved for life insurance.