Why Discuss Final Expense Products with Clients?
Disclaimer: Since Medicaid rules and insurance regulations are updated regularly, past blog posts may not present the most accurate or relevant data. Please contact our office for up-to-date information, strategies, and guidance.
Although end-of-life conversations can be difficult, having a plan in place helps reduce the financial and emotional stress for your client’s family, friends, and caregivers. The reality is most people over the age of 55 have very little money available for their end-of-life costs. As a trusted agent, you can assist in starting the conversation and helping your clients secure a beneficial solution tailored to their situation.
Important Considerations for End-of-Life Planning
Medical and Hospice Bills
Your client could have medical and/or hospice bills left at the end of their life. While many of these costs are covered by health insurance and Medicare, some services and procedures are either not covered or require a co-pay or coinsurance.
Funeral and Burial Costs
Funeral and burial costs can easily exceed $8,000, depending on your client’s wishes and location. Making arrangements to help cover these costs and laying out plans and final wishes ahead of time takes the financial burden and emotional stress off their loved ones during an already difficult time.
Your Client’s Situation
Your client’s current financial situation can help you determine whether final expense insurance or a funeral expense trust is a better fit. Final expense insurance is a small whole life insurance policy that is protected from creditors but is considered a countable asset for Medicaid purposes. On the other hand, an irrevocable funeral expense trust with a face value below a state-specific limit is exempt from Medicaid.
Don’t let your client call a 1-800 number to purchase burial insurance or a whole life policy. Talk to them about their end-of-life plans and explain the benefits of securing a final expense product. Your client will appreciate working with an expert who can help them develop a plan designed for their unique needs. Plus, their loved ones will thank you for reducing their stress during a difficult time. If you’d like to learn more about final expense products, please contact our team. We would be more than happy to get you the information you need!