What to watch out for with final expense insurance
Final expense plans can either be bought as a term policy or as a whole life policy. Term policies are typically for a period of 10, 20, or 30 years, while whole life policies are guaranteed until either age 100 or 120. That means if you outlive your policy, there’s no payout and you don’t get your premiums back.
Final expense policies sometimes have a waiting period before they pay the full benefit amount. For example, if a policy has a two year waiting period after the policy has been issued, and you die in those first two years, the company will either pay out a reduced benefit amount or no benefit amount.
Can I buy final expense insurance while I’m hospitalized?
Yes, you can purchase a final expense policy at any time — even if you have a medical condition, or you’re in the hospital. The policy doesn’t require extensive medical underwriting, so depending on your health profile and insurer, your coverage could go into effect immediately.