Truth be told, there are several reasons why people call about life insurance or burial insurance. The industry name for this coverage is final expense insurance.
The number one reason by far is when a spouse or close family member recently passed away with no money to pay for the funeral. There is nothing that motivates them more than having experienced having to “pass the hat” to scrape enough to lay their loved one to rest.
In fact, it happens much more than you might expect. The average cost for a simple one day affair and burial is about $7500 in the Buffalo, NY area and slightly less in rural areas. Cremations are much less averaging $2-3K herelocally.
Fortunately people up to the age of 85 can get a simplified issue burial insurance for a reasonable rate. I always advise my clients to get as much as they can but not more than they can afford
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In New York State people can get guaranteed issue life insurance up to age 75. This means NO HEALTH QUESTIONS. In states not NY, you can get this type of insurance up to age 85! I love New York.
Interestingly, you can find this guaranteed life insurance advertised on T.V. You have all seen the Alex Trebek commericials, right?
Here is the problem. Guaranteed Issue Life Insurance comes with a 2-3 year waiting period. This means if you pass within the waiting period the death benefit is only premiums paid plus a bit of interest. In my practice alone, I have come across dozens and dozens of people that bought this coverage that actually were healthy enough for “first day” coverage. Don’t make this mistake.
Always meet with your agent and apply for first day coverage insurance first. If you do not qualify, you can always get the guaranteed issue coverage (as long as you are 75 or under in NY). Also remember, you can apply for first day coverage up to age 85.
Whatever your reason, it is always best to make sure you have enough coverage so you don’t have to burden your children or loved ones to foot the bill of your going away party.
If you have any questions, drop me an email or give me a call. I am happy to help.