Insurance

Riders Available With Final Expense Insurance Policies

Retirement Health Insurance_2

December 10th, 2020   |   Updated on October 5th, 2021

Final expense insurance is one of the topmost selling products in the insurance sector. Providers like AARP offer various plans and have many years of experience providing life insurance to seniors across the nation.

As AARP is an interest group and not really an insurance company, the life insurance coverage you buy through AARP is covered by New York Life. In other words, your options are restricted to one company.

Also, note that these policies are only available if you are an AARP member (meaning you should be at least 50 to qualify). The membership can cost you between $12 and $16 annually, based on your way of payment.

“In case you are an elderly person, then you may have come across mails in your inbox talking about the benefits of becoming an AARP member. You might even end up choosing AARP final expense insurance,” says Gary Cubeta from Insurance for final expenses.

Different Kinds of Final Expense Insurance Plans

Final expense insurance policies are a well-known choice among seniors above 60. The varied types of final or burial insurance plans that providers like AARP market through New York Life are:

  • Permanent
  • Term
  • Guaranteed

One thing you may discover is that the policies have low face amounts. The highest face amount for level benefit terms is $100,000, $50,000 if you choose permanent life cover, and $25,000 if you go for guaranteed acceptance policy.

What To Know About Life Insurance Riders?

term insurance plans

Life insurance riders are just forms of extra or supplemental life insurance coverage with diverse functions. You can buy the rider as an add-on to your chief policy. These riders can offer you extra coverage for particular situations.

One of the major perks of a life insurance rider is that you can easily add coverage for special challenges and sudden, expensive health issues, like nursing care. Following are the two riders you can experience with the final expense insurance policy.

Premium Riders

Under the “Waiver of Premium” rider, if you (the insured) need long-term nursing home care whereas the policy will remain in place, the insurer will surrender the policyholder’s premium obligations during your stay in the nursing home.

Accelerated Death Benefit Rider

Once you avail of the accelerated death benefit rider, you (the policyholder) will be permitted to access up to half of the death advantage of your policy. It applies if you get diagnosed with a terminal disease (defined as a diagnosis of less than 12 months to live).

Moreover, an accelerated death benefit rider can convert a life insurance policy for you into a ready source of funds to pay off your end-of-life care.

Quick Benefits

The best benefits of a final or burial insurance policy are that you experience a lack of a waiting period and competitive pricing. The policies are quite comparable to other whole life insurance carriers.

Moreover, the application process that you need to follow for providers like AARP insurance is fairly simple. You must complete a brief health questionnaire, and the insurer will conduct a prescription background check.

To sum up, providers like AARP final expense insurance can be a good option for you if you are healthy. After all, life insurance companies like AARP offer you easy to qualify policies along with feasible coverage for seniors.