Final expense insurance takes care of your medical bills and essentials in the last days of your life and covers funeral costs. When you start looking at providers, you will come across several final expense quotes. How do you decide which one you should go with? Having an idea about the variables that determine the quotes of insurance providers can help you make a more informed decision.
Gender
This is one among the most influential factors playing a role in determining costs. Without getting into lengthy discussions of gender biases, it can be said that men have to pay more than women in most cases. This is because it is scientifically proven that women live longer than men, so they have to pay less in premiums. The longer duration makes up for the reduced payments.
Age
Most insurance companies have fixed premiums for specific age groups. Even within the groups, there will be slight differences based on the person’s actual age. The charge increases as your age advances through the years. So with every birthday, you have to pay a higher premium than what you paid the previous year. It is also highly crucial to keep in mind that the base monthly fee is locked for life when you buy your policy.
Your Overall Health
When determining final expense quotes, the provider will break down their product into two or three categories based on the risk factor. When you apply for the insurance, they will see which category you fit into and quote accordingly.
So if you see, they have termed the quotes “Level” or “Preferred,” which is the most affordable category with the lowest risk. Next comes “Graded” or “Standard”, for the middle tier risk factors.
Finally, there is the “Modified” for the riskiest category and will be the most expensive. Your health will determine how much coverage the provider will give you, based on whether you have any pre-existing medical conditions or not.
Dependence on Tobacco
If you chew tobacco by itself or use it via cigarettes, you will have to pay a higher premium than non-tobacco users. Some insurance companies will categorize you as a non-tobacco user if you smoke cigars or e-cigarettes, but they are rare. This is because tobacco is a source of major health issues and reduces the user’s life expectancy. Providers want to safeguard their interest, too, and hence the higher rates for those who use tobacco.
Amount of Coverage
All the factors mentioned above come together to determine a premium payable on every $1000 insurance coverage. Then, depending on the amount of coverage you want, that figure is multiplied by how many thousands of dollars you are looking at. With more coverage, you will have to pay more premiums.
When you compare the quotes by various providers, there will be some differences based on the company’s criteria. Gary P. Cubeta from Insurance for Final Expenses will be able to tell you more about final expense quotes and help you make the best decision.
