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Thinking about funeral and burial arrangements may be a morbid topic for many, but it is a reality that needs to be faced since death is the only inevitable thing in life. Beyond casket preference, ceremony type, flowers, and program, one should seriously contemplate on funeral costs, considering that it currently amounts to thousands of dollars.
According to a recent study, 30% of adults buy life insurance to ensure that their loved ones have funds to pay for their funeral expenses. If you have a similar intention, you may be thinking of acquiring a state farm burial insurance or final expense policy since it is one of the country’s largest insurance companies.
Before you contact their agent and sign a policy, learn more about the burial plan to see if it is a good fit. Below are some details about State Farm’s final expense policy that can help you make the right decision.
What are the Essential Features of State Farm Burial Insurance?
State Farm’s final expense insurance is a financial product that primarily aims to help cover the economic burden of funeral and burial expenses. Here are other details about their burial plans:
- Fixed premium – Insurance payments will never increase, and the policyholder could pay the amount beyond the age of 100.
- Fixed coverage – The death benefit will remain the same and will never drop for as long as you pay your premiums religiously.
- Flexibility – The benefit can be used for other purposes aside from funeral or burial costs.
- Stability – The burial insurance policy will not expire.
- Earnings – Policyholders could earn dividends that can be utilized to reduce the insurance premium, among others.
While the features above may seem impressive, it is important to note that the items above are not exclusive to State Farm. You can enjoy the same features even if you avail of a final expense plan from other insurance companies. It may be a smart decision to compare the offerings from State Farm, with other insurance providers. A comparison type of website such as Burial Insurance Pro will show you rates and options from over 30 different companies.
Perhaps what set State Farm apart from the rest is its fixed death benefit value of $10,000. This amount may seem remarkable until you realize that other companies offer benefits amounting to as much as $50,000. With a State Farm burial plan, you have no other choice but to accept the $10,000, which is not much if you consider the high cost of funeral and burial in the United States.
Is it Mandatory to Take a Medical Exam to Qualify for State Farm Burial Policy?
As with other burial policies from other insurance companies, State Farm does not require medical examinations. You only need to answer several questions about your health and to allow them to examine your prescription and medication history.
Is It Easy to Qualify for State Farm Final Expense Insurance?
Since the company does not require policy applicants to go through medical tests, you may think it is easy for anybody to qualify. That is not the case, given that the firm immediately rejects individuals who suffer or suffered from any of the health issues specified in their application.
For instance, the company will decline your application if you ever experienced or had been treated from Hepatitis (A, B, or C), cardiovascular issues (chest pains, blood clots, heart attacks, etc.), mental health disorders, kidney diseases, and many others. Think about how their requirements limit since many of the health issues on their list are fairly common to Americans.
What are the Pros and Cons of State Farm Final Expense Policy?
State Farm’s final expense policy essentially offers the same advantages you can find from other insurance companies’ burial plans. The payout can be used for other purposes beyond paying for funeral costs, the premium remains the same, and the plan has no expiration date.
While there is no perfect burial plan or insurance firm, State Farm’s final expense insurance tends to be particularly problematic compared to other companies for the following reasons:
- The death benefit is limited to $10,000.
- The company imposes steep premium to female applicants and those who used tobacco or nicotine products during the past twelve months.
- The firm’s health requirements are practically impossible to attain. For instance, State Farm requires a cholesterol level of 249 when cholesterol is virtually a non-issue to other firms.
Given the information above, it is clear that while state farm burial insurance is one of the most popular policies in the country, it is not necessarily the best. As with other essential purchases, it is advisable that you learn all you can about a specific burial plan and how it compares to other final expense insurance of other companies. Shop around, get quotations, and weigh the pros and cons to find an insurance product that will offer you the most convenience and advantages.