Last updated on: November 10, 2022
As you start to age, one of the last things you want to think about is who is going to take care of any financial responsibilities that your loved ones might incur once you pass away. It's a sad thought, but it's important and something that really needs to be considered. Many people have life insurance in South Dakota and leave a will so everything is taken care of and family members know where your money and other assets should go. If you haven't thought about it yet, it's something to familiarize yourself with soon so you can make sure everything gets handled the way you want it to. One way to do this is to start looking into final expense insurance.
What Is Final Expense Insurance in South Dakota?
Final expense insurance is a type of life insurance that helps older individuals pay for end-of-life bills, such as funeral expenses and other healthcare expenses. According to the National Funeral Directors Association, in SD, the national median price of a funeral with a burial and vault is $8,755. The national median price for a funeral with cremation is $6,260. Keep in mind that these averages don't even include things like a grave marker, a published obituary, and other end-of-life expenses. For people with limited income and other financial responsibilities in South Dakota, this can feel like an overwhelming and completely unrealistic amount of money to have to spend on someone's funeral expenses.
Does It Cover Expenses Other Than The Funeral?
When you purchase final expense insurance, the insurance company will pay out the policy amount to your beneficiary and then they will be able to cover expenses that they might not otherwise be able to afford in South Dakota. In addition to funeral expenses, the beneficiary can use this money to cover outstanding medical bills, credit card debt, mortgage payments, and probate and legal fees. However, the beneficiary can choose to use the payout on anything they wish.
Price of Final Expense insurance in South Dakota
Final expense insurance is much more affordable in South Dakota than typical life insurance. For example, if you purchase final expense insurance when you are a 65-year-old female, the price is around $41 per month. For a 65-year-old male, it would be around $56 per month. The longer you wait to purchase a policy, the more expensive the monthly rate will be, but they generally never become totally unaffordable in SD. If you are an 80 year old female purchasing this policy, a typical monthly payment is around $93 per month, and for an 80-year-old male, it’s around $126 per month.
Prices will vary depending on which company in South Dakota you purchase the plan from, so make sure you research prices and what the plans offer. Keep in mind that the older you are when you purchase the policy, the higher your premium will be in SD. However, the premiums won't increase as you age. It's a good idea to purchase this type of a policy at a younger age so that you will always have low monthly payments.
Does The Policy In SD Expire?
Unlike typical life insurance, most final expense insurance plans do not expire because they are considered whole life insurance plans. As long as you pay your monthly premiums in South Dakota, your policy should remain active. Some policies offer term final expense policies, but they are not as common in South Dakota.
Who Qualifies For Final Expense Insurance in South Dakota?
Because the coverage amount is smaller than most other types of life insurance, it's relatively easy to qualify for this type of policy in SD. You will not be required to submit to a medical exam in order to be approved. Most of these policies will be issued once you answer some questions about your health. Once you qualify, that's it. The insurance company can't change the terms of your policy due to changes in your health.
It's important to note, though, that certain health issues may prevent you from qualifying for this type of insurance policy in SD. For example, people who are in hospice care likely won't be eligible in SD. Additionally, people who are hospitalized, some people who live in nursing homes, and people 90 years or older might not qualifyin SD. This is why it's so important to purchase this type of plan early on in your life. If you buy the plan and then become hospitalized or you have to enter hospice care, your insurance company cannot cancel your policy or increase your rates. It's also important to know that people with certain dangerous job may also not qualify for this type of insurance.
Most policies offer payouts between $2,000 and $50,000 in South Dakota.
Why You Should Look Into Final Expense Insurance in South Dakota
Having final expense insurance will make it easier for your loved ones to handle the devastating news of your passing. Without this policy, your loved ones might have to dip into their own savings or their retirement accounts just to make sure they can have give you a proper funeral in SD. In other scenarios, your loved ones might not having have any savings or retirement and might be unable to come up with the money to honor your life the way they wish. One of the significant drawbacks of this type of insurance policy is that the payout is generally pretty low. However, this is matched by low premiums, so this is to be expected.
One Less Thing To Worry About
Losing a loved one is probably the worst experience a person can go through. Worrying about finances on top of the loss of a loved one can be utterly overwhelming. Having a final expense insurance policy in South Dakota can at least take some of the pressure off any surviving family members and friends. Hopefully, purchasing a final expense policy will give you some peace of mind as well. You can rest assured knowing that your family and friends won't have to worry about finances, and they will just have time to grieve.
Categories: Medicare Articles, Turning 65