Notes

Axis Capital Group Insurance: Assessing final expense insurance

Final expense insurance, regularly called burial insurance, was retailed door to door as late as the 1960s. Then it turns out to be the domain of mid-sized life insurers, funeral home directors and television spokespeople whose message was simple: "You cannot be turned down!"

The cost for burial service has risen from about $700 in 1960 to $8,343 in 2012, says the National Funeral Directors Association. And that doesn't comprise the plot and headstone.

Simultaneously, a latest study by the Massachusetts Institute of Technology found that nearly half of all American senior citizens had less than $10,000 in financial assets when they died. And elderly single people were in the poorest situation money-wise.

For Americans who don't plan to trouble heirs with paying for a funeral, burial insurance offer one solution. It moreover provides ease since applying for a burial insurance policy does not need a medical exam.


Here are Axis Capital’s main things to know about final expense insurance:

(Axis Capital is a group of companies with branch offices in Bermuda, Australia, Canada, Europe, Latin America, Singapore and the United States and has been also servicing SE countries such as KL Malaysia, Bangkok Thailand, Jakarta Indonesia and many more.)

• A final expense insurance policy benefit typically varies from $1,000 to $50,000.
• Warning! They cannot say no to you for a final expense policy. Consequently, if you have medical circumstances that could stop you from buying an underwritten policy, final expense insurance offers alternative option.
• These policies have a graded death benefit, signifying your beneficiaries don't acquire the full payout if you die in the first two years of the policy. Make sure, to avoid complaints in the future, you read the fine print to recognize what the payout schedule is in years one and two.
• Final expense policies can be either term life or permanent life. If you intend to be covered 'til your death, indicate a permanent life version. And avoid scams!

Dollar for dollar, burial insurance is more costly than most other life insurance products for the reason that the lack of medical exam - the life insurer takes on an unidentified risk. Rates are established on the average life expectancy of a man or woman, presently pegged at ages 77 and 82 years, correspondingly.