As we age, the importance of having life insurance becomes more apparent. But for seniors in New Mexico, it’s especially important to consider final expense life insurance.
Final expense policies are designed to help families pay for funeral costs and other expenses that come with a death – making them an invaluable resource for those who don’t want their loved ones shouldering financial burden after they’re gone.
In this blog post, you’ll learn about New Mexico final expense life insurance: what it is; cost of funerals in New Mexico; burial and funeral laws; sample rates based on gender; steps to buy a policy; and which companies offer the best coverage options.
Table of Contents
- What is Final Expense Life Insurance?
- Cost of Funeral in New Mexico
- Burial and Funeral Laws in New Mexico
- Sample Rates for New Mexico Males and Females
- Steps To Buy A Final Expense Life Insurance Policy
- Best Final Expense Life Insurance Companies
- FAQs in Relation to New Mexico Final Expense Life Insurance
What is Final Expense Life Insurance?
Final expense life insurance is a type of life insurance policy designed to cover the costs associated with end-of-life expenses such as funeral and burial costs.
It is typically purchased by seniors over the age of 50 who want to ensure that their loved ones are not burdened with these costs after they pass away.
Also called funeral insurance or burial insurance, this type of policy can provide peace of mind for those looking to protect their family from financial hardship in the event of death.
Final expense policies are usually smaller than traditional life insurance policies, ranging from $2,000 – $50,000 in coverage, depending on the provider and plan chosen.
They often have no medical exam requirement during application process – making them easier to obtain compared to other types of coverage.
Almost always, final expense life insurance is a form of whole life insurance. Aptly named, whole life policies last your entire life – as long as you make your premium payments.
Burial insurance for seniors (final expense) is a way to ensure that your loved ones are not burdened with the cost of your funeral expenses.
Knowing the cost of funerals in New Mexico can help you make an informed decision when choosing a final expense policy.
Key Takeaway: Final expense life insurance is a type of policy designed to cover end-of-life expenses such as funeral and burial costs. It typically has no medical exam requirement, making it easier to obtain than other types of coverage.
Cost of Funeral in New Mexico
The average cost of a funeral in New Mexico can vary greatly depending on the services chosen. The price, including casket, embalming, viewing and visitation, transportation and other related services, ranges from $7000 to $10,000.
Caskets are typically one of the most expensive items associated with funerals.
Prices for caskets range from several hundred dollars up to thousands of dollars depending on material used such as wood or metal and any additional features such as velvet lining or an engraved nameplate.
Embalming is also often required by law if there will be a public viewing or visitation prior to burial or cremation.
This service includes disinfecting the body and preserving it for display purposes which can add several hundred dollars to the overall cost of the funeral.
Viewing and Visitation
Viewing and visitation fees may also apply if family members wish to have an open-casket ceremony prior to burial or cremation.
These fees cover costs associated with setting up chairs in a chapel where friends and family can pay their respects before saying goodbye for good.
Transportation costs often add up quickly.
They may include transporting the deceased from place of death (home/hospital) to mortuary or funeral home; sometimes transferring remains between states; moving remains from mortuary/funeral home back home after service has been completed; and transferring remains between countries.
All these costs need to be taken into account when calculating total expenses associated with funerals in New Mexico.
Key Takeaway: Funerals in New Mexico can be expensive, ranging from $7000 to $10,000. Costs include caskets, embalming fees, viewing and visitation costs, and transportation expenses.
Burial and Funeral Laws in New Mexico
Burial and funeral laws in New Mexico are not as strict as other states.
There is no requirement to purchase a burial or funeral service package from any specific provider or company.
However, it is important to note that some providers may have additional requirements for their services such as embalming or cremation prior to burial or interment.
In the state of New Mexico, there are no laws requiring individuals to be buried in a cemetery. It is legal for an individual’s remains to be buried on private property with permission from the landowner and local government officials.
- You can build your own casket if you would like.
- Private burial is allowed as long as you have permission from the property owner.
- You need a permit before cremating a body.
- Scattering ashes is allowed as long as you have permission.
Additionally, if someone wishes to donate their body for scientific research they can do so without any legal repercussions in New Mexico.
New Mexico has only a few laws in place to ensure that individuals are able to make their final arrangements without worry.
Key Takeaway: When considering final expense life insurance in New Mexico, it is important to understand burial and funeral laws as well as research different companies offering policies for seniors.
Sample Rates for New Mexico Males and Females
The cost for final expense coverage in New Mexico will vary based on a number of factors such as:
- Health history
- Lifestyle habits
- Coverage amount
Premiums may be paid monthly or annually depending on what works best for you financially. However, most companies offer discounts if you pay your premium in full annually, rather than breaking it up into monthly payments throughout the year.
Generally speaking, males tend to pay higher premiums than females due to higher mortality rates among men compared to women.
In New Mexico specifically, there are several companies that offer competitive rates for both male and female seniors over the age of 50 who are looking for final expense life insurance coverage.
For example, a healthy 80 year old male in New Mexico could expect to pay around $145 per month with a $10,000 death benefit while an 80 year old female would only have to pay around $110 per month with the same death benefit amount.
For those between ages 50 and 70 years old in New Mexico looking for final expense life insurance coverage, the monthly premium costs may be even lower depending on their health status and other personal factors such as smoking or alcohol use.
A 60 year old non-smoking male might expect to pay around $65 per month with a $15,000 death benefit while a 60 year old non-smoking female might only have to pay about $50 per month with the same death benefit amount.
It is important that seniors shop around when looking for final expense life insurance policies since different companies may offer different rates based on their own underwriting criteria and risk assessment methods.
Related – Older seniors have specific needs for burial insurance for elderly individuals.
Additionally, some companies may also offer discounts or special offers, such as for military veterans, which can help reduce overall costs further, so it pays off to do some research before making any decisions regarding your policy choice.
Sample rates for New Mexico males and females can vary greatly, so it is important to do your research before making a decision. Now let’s look at the steps you need to take in order to buy a final expense life insurance policy.
Key Takeaway: Seniors in New Mexico looking for final expense life insurance should shop around to find the best rate, as premiums can vary significantly depending on age, gender, health history and lifestyle habits. Factors such as smoking or alcohol use may also influence costs.
Steps To Buy A Final Expense Life Insurance Policy
The process to buy final expense life insurance is simple and straightforward. First and foremost, you will want to partner up with an expert agent who specializes in burial insurance for seniors.
Plan on following these steps to quickly secure the right coverage for your needs.
Step 1: Research Final Expense Life Insurance Policies
The first step in purchasing a final expense life insurance policy is to research the different policies available.
Each carrier’s final expense plans differ and you will want to familiarize yourself with their key features. Again, an expert agent will walk you through your options.
It’s important to understand the types of coverage offered and how much coverage you need. You should also compare rates from different insurers to find the best deal for your needs.
Step 2: Choose an Insurer
Once you have researched the various options available, it’s time to choose an insurer that offers a policy that meets your needs.
Make sure you read through all of their terms and conditions before making a decision so that you are aware of any exclusions or limitations on coverage.
Step 3: Complete Application
After selecting an insurer, complete their application form with personal information such as name, address, date of birth, Social Security number, and medical information if required by the insurer.
This will help them determine whether the carrier can offer you coverage, and at what rate – based on your health history and lifestyle factors (such as smoking status).
Note – guaranteed issue life insurance plans do not require your medical information.
Step 4: Pay Premium
Once your application has been accepted by the insurer, pay any premium amount due at this time – in order for coverage to be activated immediately upon receipt of payment.
If paying via credit card there may be additional fees associated with this method so check with your provider beforehand if applicable.
Once payment has been received by the insurer, they will send out confirmation documents outlining details about your policy.
Details include the policy start date and duration of coverage (typically permanent), along with contact details should you need assistance in future regarding claims or other matters related to your policy.
Step 5: Review Policy Regularly
On at least an annual basis, be sure to review the details of your final expense life insurance policy. You will want to confirm that your financial needs are still met.
Any life changes, such as a birth, death, marriage, or divorce should also prompt you to review your coverage needs.
Communicate to your beneficiary where your policy is kept. That way, when it comes time to file a life insurance death claim, the contract is easily accessible.
Taking the time to understand the steps involved in purchasing a final expense life insurance policy can save you money and give you peace of mind.
Key Takeaway: When purchasing final expense life insurance, research the different policies available, compare rates from different insurers, choose an insurer and complete their application form with personal information. Be sure to work with an independent agent.
Best Final Expense Life Insurance Companies
It is important to do your research and find the best company for you that meets your needs. Here are some of the top final expense life insurance companies in New Mexico.
Included with a final expense policy purchase is enrollment into an estate and funeral planning services: LegacyShield and the Sequoia Funeral Concierge Plan.
American Amicable offers a variety of final expense life insurance policies. You can purchase up to $50,000 in burial insurance and terminal illness and confined care riders are included with your policy at no extra charge.
Prosperity is another excellent burial insurance choice. The policy death benefit remains level for the first 20 years, and lasts until age 100. Up to $30,000 in burial insurance is available. Only three health questions are asked on the application. An accelerated death benefit rider is included.
Guarantee Trust Life
Guarantee Trust Life (GTL) offers an affordable way to cover funeral expenses with their final expense plan that includes benefits such as an accidental death benefit for the first two policy years. Up to $25,000 in burial insurance is available and you only need to answer five health questions to qualify.
GTL is now also offering free enrollment in the Sequoia Funeral Concierge Plan.
AIG is an excellent burial insurance option for seniors with significant health problems. They offer a guaranteed issue life insurance plan. An accelerated death benefit is included with a policy purchase seniors can be up to 85 years old. $25,000 is the maximum death benefit.
Mutual of Omaha
Mutual of Omaha is one of the most well-known providers of final expense life Insurance in New Mexico. They offer coverage to seniors up to 85 years old. Their policies are permanent and death benefits are available up to a maximum of $40,000 in burial insurance.
Key Takeaway: Seniors looking for final expense life insurance in New Mexico should research top companies like SBLI, American Amicable, Prosperity, Guarantee Trust Life, AIG and Mutual of Omaha to find the best plan that meets their needs. Work with an expert independent agent.
FAQs in Relation to New Mexico Final Expense Life Insurance
Is final expense life insurance worth it?
Final expense life insurance can be a great option for seniors over the age of 50. It is designed to provide financial protection in the event of an unexpected death, and can help cover funeral costs or other expenses that may arise after someone passes away.
Final expense policies are typically more affordable than traditional life insurance policies, making them accessible to those on a fixed income.
Additionally, they often require no medical exam, so even those with pre-existing conditions can qualify for coverage.
Ultimately, burial insurance is worth it if you need peace of mind knowing your loved ones will not be burdened by unexpected costs upon your passing.
How much does final expense insurance cost per month?
The cost of burial insurance (final expense) depends on a variety of factors, such as the age and health of the insured, the amount of coverage desired, and other personal details.
Generally speaking, premiums for this type of policy can range from $20 to $200 per month (or more) depending on these factors.
It is important to shop around for the best rate available in order to get the most value out of your policy. Additionally, it is always wise to consult with an experienced agent who can help you determine which plan will be right for you and your budget.
What is the maximum amount of final expense insurance?
The maximum amount of final expense insurance available to seniors over the age of 50 varies by provider and plan.
Generally, the coverage limit for a single policy can range from $2,000 up to $50,000 in coverage, depending on the individual’s needs and budget.
Some providers may also offer additional riders that can increase coverage limits even further. It is important to speak with an insurance agent who specializes in burial insurance in order to determine what type of policy best suits your needs and budget.
How does final expense life insurance work?
Final expense life insurance is a type of policy designed to cover the costs associated with end-of-life expenses.
It pays out a lump sum upon death, which can be used to pay for funeral and burial costs, medical bills, or other outstanding debts.
The amount of coverage varies depending on the policy but typically ranges from $5,000 – $35,000 in death benefits (sometimes more and sometimes less).
Premiums are usually fixed and affordable for seniors on limited incomes. Final expense policies also offer flexible payment options so that seniors can choose what works best for them financially.
In conclusion, final expense life insurance is an important product for seniors in New Mexico. It can help cover the cost of a funeral and burial expenses, while providing peace of mind to family members.
With careful research and comparison shopping, you can find the best policy that meets your needs at an affordable rate.
Be sure to review all laws and regulations related to funerals in New Mexico before purchasing New Mexico final expense life insurance so that you are fully informed about what is covered by your policy.
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Our experienced advisors will help guide you through the process of selecting the right plan that fits both your budget and lifestyle. Don’t wait any longer – contact us today to get started on finding a policy that is perfect for you.