This is a wonderful place to live, raise a family, and eventually ride off into those sought after retirement in the lush evergreen landscape of the Puget Sound or the farmlands and wine country of the eastern side of the state. This state is wonderful for so many reasons but beyond any other, in my opinion, is the gorgeous scenery. From the beautiful coastline to the stunning skyline of Seattle with Mt. Rainier. Indeed this state is a world-class place to live and ultimately spend the final years of your life and beyond.

Washington Final Expense Insurance

In the evergreen state, you have many wonderful options as you look into your final arrangements and decide what the best way is to help your family once you are gone. In this article, we are going to dive specifically into why you might choose this product over other types of coverage. There are pros and cons to all different programs and plans. We strive to help you navigate through the questions you should be asking yourself to have a better understanding of the different options.

We are all fortunate and blessed to have wound up in the evergreen state at one time or another. So when we start to think about how we want the end of our life to look and what our final wishes are it is important to have a clear understanding of how this process takes place, what your options are, and ultimately what your final wishes are.

Here at Willamette Life, we feel uniquely qualified to give our input on this topic. I was raised in the Puget Sound area and attended college at CWU and am familiar with the amazing things this beautiful state has to offer. Willamette Life is located in the northwest very close to both the Columbia River and Willamette River. I love this state and want to help other Washingtonians find the answers to their questions.

The Top 5 Things To Consider

1. What is it?

Final Expense Insurance is a type of whole life product that offers many wonderful benefits. This product allows you to purchase a policy that is meant to cover your final expenses which may include the following:

• Ceremony
• Cremation
• Memorial/Celebration of Life
• Remaining Balance on a mortgage
• Medical Bills
• Remaining Car Loan Balances
• Credit Cards
• Post mortem expenses
• Legal Expenses
• Charity donations
• Leaving an inheritance
• Other end-of-life expenses

Whole Life

Whole life lasts for your whole life.

When it comes to whole life there is not a more simple and straightforward product in the life industry. These policies are clear and concise on when your monthly premiums are due and those premiums will never change. No matter if the policy is one month old or thirty years old. Also, the coverage amount, also known as a death benefit, will never decrease. This is crucial for so many family members and loved ones who will be counting on the death benefit in the full amount you intend for them to receive.

Key features of a Whole Life Plan:

• The Coverage amount never decreases
• The Premiums never increase
• This policy builds a cash value that will allow you to borrow against the policy in time if needed
• Many carriers have additional benefits that are listed in the policy agreement

Whole Life will always be there for you when needed and you will always know where you stand with the policy.

For a deeper dive into each one of the plan types, you can visit our “The Plans” page now.

2. Are there other types of policies?

Yes, there are! But you’ll need to get into the fine print of these policies to make sure you understand what these policies are saying.

You need to ask if this policy is a whole life policy (like we spoke earlier about), or is this a term policy.

The basics of a term policy are as follows.

Term

Term is a product that lasts for a specific period of time, then terminates. At this time if you wish to stay insured and keep your policy the monthly premiums are likely to increase, while inversely decreasing your coverage amount.
Term coverage is right for certain situations.

Here are the keys points of term coverage:

Pros

• Less Expensive than whole life
• Receive more coverage than you would will a permanent plan
• It can be issued a policy without a medical exam for some carriers.

Cons

• In some policies the older you get the higher, your monthly premiums will increase and the coverage amount decreases.
• This policy will terminate at some point and not cover you for the long haul.
• Builds no cash value

Always check to see if your term policy has the rates locked in for the life of the term. (This is very important!)

This policy typically will terminate at the age of 80. This means you just paid into a policy for 5, 10, 20 sometimes 30 years.

I will be the first person to tell you that a term policy is necessary under the right circumstances.

When does a term policy make sense?

• If you are using the plan as a back-up plan or additional coverage.
• If you are protecting a young family and need income replacement to support your family upon your premature death.

Term should not be your go-to plan for your end of life expenses because most likely it will not be there when you need it. There is a reason why these policies are cheaper than a permanent whole life policy.

a very small percentage of term policies are paid out per year in the United States.

Ultimately everyone gets to decide if they want to use a more economical product. Just know there is a chance you may outlive the term product. My advice is to always be prepared for the long haul.

3. Do I need this product?

Everyone’s situation is different when deciding if final expense insurance is right for them. There is not one cut and dry answer when determining your needs.

However, there is a simple answer to this sometimes complicated question.

Have you or anyone in your family ever been financially responsible for parents or loved one’s sudden death? If so, how were those expenses handled? Did the person who passed away have a life policy? How long did it take to receive that money?

With basic memorial costs being in the $8,000-$12,000 range, this can be quite an unexpected burden.

You may think that the person who passed away might have some money left over in their bank account to help pay for these expenses. This unfortunately is not always the case. Especially with the list of possible expenses that were listed earlier.
Very often there is very little to nothing left for a simple service.
This is where a policy would protect your loved ones from the financial burden you may leave behind.

4. How much coverage is needed?

When it comes to the average costs for a traditional service range from $8,000-$12,000. When you are determining the best policy for yourself, a parent, grandparent, or loved one the amount of coverage needed is an important piece of information to determine.

As an example, if you are looking into $100,000 of coverage and are 70 years old and want a permanent life policy where the premiums never rise and the coverage never changes you will need to be prepared to have a very large budget. But if you are looking for that same product that has the same features but is meant to just cover your end of life expenses, let’s say $15,000 and are looking to pay $60-$100 per month this is much more realistic for pricing and coverage.

So setting this expectation is an important first step.

For example, in the state of Washington, the average Cremation cost is $1,363. So it is important to know what you or your loved one’s final wishes are to be able to determine the proper coverage amount.

5. How do I apply?

You have two options when it comes to obtaining coverage.

Working Direct with the Carrier

The company sells some of its products directly but typically they only sell a select few, if any. This would be like going into a car dealership and being told that this Ford Focus is the only option and we only have it in the color red. Also, some carriers make it extremely complicated to get a simple life policy like Colonial Penn.

Working with an Independent Agency or Agent

An independent agency or agent represents multiple companies and can compare those different company’s prices and health standards for a particular plan. This allows the agent to shop around on your behalf for the best benefits and best price that suits you. This would be like buying a car and having complete transparency working with someone who can talk to 10 to 15 different car dealerships and find the best car, color, and price that’s right for you.

This allows the agent to find the perfect piece to the puzzle to find the best coverage for you. Whether it is AIG, AARP, or Mutual of Omaha you need to do your due diligence.

Once you find the right agency to work with there are typically three ways to purchase the coverage.

How do I apply for coverage?
There are a few ways to apply for coverage in this modern time that we live in once you have found the right agent or agency to represent you.

Three options to purchase coverage:

Electronic Application
This is done via cell phone, tablet, or computer. Your agent will help gather all the needed information from you and plug it into their system. This will then generate an email that will be sent to you. Typically the agent will send a series of 2 emails that you will be responsible to open and “e-sign”. This decision can be immediate or it can take 1-4 business days. This depends on the company issuing the policy.

Voice Signature
With a voice Signature, the agent again collects all the needed information from you. Once this step is completed the agent will connect the company into the conversation. Then a representative from the company will ask yes or no health questions. Once all obligations are completed you will be asked to “sign” with your voice. Most voice signatures will give an immediate decision to determine your eligibility.

Paper Application
A paper application is also a possibility if needed, this would be via mail. Your agent would gather all your information and fill out the application for the policy. Once this has been done the agent would then mail the application to your address. You would sign the document and mail it back to the agent. Once the agent has the application they will be able to send the application to the carrier and receive a decision within 1-4 business days.

Visit our “Get Started” page or fill out the information or give us a call at 833-518-0080.

Final Thoughts

a. It is very important to understand what type of coverage you are attempting to apply for. Always ask your broker is this coverage Term or Whole Life? Whole life will be your best bet for the long haul.

b. Do the math! Make sure you do calculations on how much coverage is needed and what your end of life cost will be. Washington Final Expense Insurance is not the best option for everyone but it is a solid option with many benefits.

c. Find an independent agency that specializes in this niche. This type of agency will be best equipped with the resources and carrier options to fit a plan that best suits you or your loved one’s health conditions. As stated earlier Willamette Life is local here in the northwest and we will be able to help answer any questions you may have.