When Do You Need Life Insurance?
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Final Expense
Final expense life insurance specifically caters to covering funeral costs, medical bills, and debts after one's passing. It's vital as the average funeral in the US costs around $7,000 to $12,000. This coverage relieves financial stress for bereaved families.
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Cover Bills
Life insurance covers bills by providing a lump sum or regular payments to beneficiaries upon the policyholder's death. It ensures financial security for loved ones, settling outstanding debts, mortgages, or medical expenses. This safeguarding allows families to maintain stability despite the loss of income or unexpected costs.
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Plan for the Future
Life insurance payouts serve as a financial safety net for future planning. They offer a tax-free lump sum, providing resources for educational expenses or supplementing retirement income. This security allows families to plan for their children's education or ensures a comfortable retirement, offering peace of mind for the future.
Requirements for Life Insurance
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Health History
This includes your age, gender, BMI, medical conditions, surgeries, medications, and family history. Pre-existing conditions can lead to higher premiums, exclusions, or denial.
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Lifestyle & Risk Factors
Insurers look at smoking status, driving record, criminal records, alcohol or drug use, travel to high-risk countries, and risky hobbies (like skydiving, racing, etc.).
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Financial Suitability
Coverage must make sense based on your income, debts, family size, or business value — this helps prevent “over-insurance.”
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U.S. Residency & Valid ID
To qualify, you must be a U.S. resident with a valid Social Security Number or ITIN.
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Medical Records and/or Paramed Exam
Some policies are “no-exam,” but others require Physician’s Statements, then a separate nurse visit to take blood or urine tests— especially for higher death benefits or older applicants.