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Aetna Life and Health Insurance, is one of the Best Final Expense (burial insurance) companies because of their dedication to its policyholders, financial stability, competitive rates and underwriting guidelines. Aetna is one of the only companies that an applicant can buy life insurance for ages 86 to 89.
The Aetna Final Expense Life Insurance is a whole life insurance policy guaranteed to age 121. This means the the premiums and the death benefit will never change as long as you have paid your premiums. By nature, all whole life policies build cash value with can be used to cover some premiums if you have enough money in the account built up over time. You can also withdraw funds or take a loan against the funds. We highly caution our clients on doing this with any small whole life policy.
Three Levels of Coverage available for the Aetna Final Expense Life Insurance
The younger and healthier you are, the lower the premiums will be. With the Aetna Final Expense policy, the healthier you are will also determine what level of coverage you qualify for. This is one of the companies that can be a much better alternative to a a”no health questions asked” “Guaranteed Issue” final expense plan. You may get a better benefit than a Guaranteed Issue plan which only pays a return of premium plus a small percent of interest.
If you can’t get the immediate 100% death benefit, you may be able to get the next level call the Graded version that pays 40% in the first year and 75% in the second. That’s a great offer instead of a full two year wait for no health questions asked like what Colonial Penn, AARP’s New York Life, and Gerber would offer. If you can only qualify for the third level called the Modified plan, talk to our agent about using a different company if you are under the age of 60. If you are over the age of 65 Aetna may still be your best option purely based on rates.
These are conditions that will completely disqualify an applicant for an Aetna Final Expense (burial insurance) policy. If you can pass these few qualifications, there is no reason for you to start with a no health questions asked policy (ages 45-75).
- Currently in the hospital, nursing facility, receiving hospice or confined to a bed, using oxygen for any respiratory disorder, have an un-repaired aneurysm.
- Ever been diagnosed or had any form of treatment or surgery for: Kidney dialysis for kidney disease, Alzheimer’s, dementia or any mental incapacity, ALS, terminal illness expected to result in death in the next 12 months, HIV/AIDS/ARC, bone marrow, stem cell or organ transplant.
Level One the Immediate death benefit pays 100% of the full death benefit after the policy is issued. The available ages are 45 to 89, and the benefits available are from $3,000 to $35,000.
Level Two the Graded death benefit pays 40% in the first year, 75% in the second year and 100% in the third year and after. The available ages are 45 to 80 and you can purchase $3,000 to $35,000.
Level Three the Modified death benefit pays your beneficiary all the premiums paid into the policy plus 10% interest. It’s more interest than you can earn in a savings account or CD and safer than under your mattress!
What happens to the cash value after you have a whole life policy for a number of years?
The cash value, sometimes called the surrender value is the amount of money available for withdrawal or loan. We highly discourage our clients from using their small whole life, burial or final expense plans as a savings account. The most conservative and recommended reason to use the cash value from a small whole life policy, is for emergencies only.
If you don’t pay that money back and then die, the amount you owe will reduce the death benefit paid to your beneficiary. Use this feature wisely. Don’t by small whole life policies in your later years and plan on using it as a savings. It takes a long time for a good amount of cash value to build, and this type of strategy is generally used when buying whole life on children or large amounts of whole life insurance.
You can also choose to borrow against your cash value for any reason. There is a small interest applied but you need to pay a medical bill, want funds for the holidays or just need a little extra, the money is ultimately yours. Just to clarify, the money belongs to the “Owner” of the policy which may be different from the “Insured.”
Reduced Paid up or other ways to extend coverage if you can no longer pay your premiums
If an Aetna Final Expense policy holder cannot pay the premiums, the first thing that will happen is that they will automatically take money from the cash value to the pay premiums for each month. There are times that a person does not even know their premiums are over due. Take for example, a person who becomes ill and has been in the hospital for two months. Not all people have someone else to take over the finances when they can’t do it themselves. This protects the policy from lapsing and can continue until the funds are completely depleted.
If you don’t pay that money back and then die, the amount you owe will reduce the death benefit paid to your beneficiary. Use this feature wisely and only for emergencies. Don’t by small whole life policies in your later years and plan on using it as a savings. It takes a long time for a good amount of cash value to build, and this type of strategy should typically used when buying whole life on children or large amounts of whole life insurance.
There are two other options if a policy holder can not afford to keep up the premiums. They can accept a “Reduced Paid Up policy.” The Aetna Final Expense policy will essentially take the cash in your policy, and use it to give you a lesser amount of death benefit. You will have that policy for ever, and never have to pay another premium. The other option is to accept an “Extended Term policy”which means your death benefit can stay the same, but the policy will only last for a specified amount of time. Aetna will give you all three options at no additional charge.
If you would like to find out more about this plan, give us a call and you’ll get the Best Quote!