Call now or fill out the form to get the best Final Expense plans that accept debit or credit cards
A large number of people looking for final expense burial insurance don’t have checking or savings accounts. Nearly all life insurance companies encourage policy holders to pay the premiums by EFT (electronic funds transfer) or more commonly know as a bank draft from their checking or savings account. If the person does not have a bank account, then they end up either paying more to get a monthly bill, or they have to pay quarterly, semi annually or yearly. The company saves money but the consumer gets shafted.
In today’s world almost everyone has some type of money card whether it’s a credit or debit card. The US government is actually on the ball when it comes to paying out Social Security benefits, more so than most insurance companies are about paying premiums. If you are collecting Social Security you’re either getting the funds put directly into your savings or checking account OR it’s loading a “Direct Express” card.
The Direct Express® card is a prepaid debit card payment option for federal benefit recipients who don’t have a bank or credit union account. The card is available to people who receive Federal benefits including Social Security, Supplemental Security Income and the VA. Cardholders can pay bills, purchase money orders from the U.S. Post Office and get cash from an ATM.
The automatic deduction is coordinated with the timing of your Social Security payment. Some Social Security recipients get there money deposited on the first of every month or the third of the month, while others get theirs on the 2nd, 3rd or 4th Wednesday of each month. The payment is taken out the day the money comes. This usually prevents people from spending the money on other things before their life insurance is paid, thus keeping the policy in force.
Almost all health insurance companies accept credit and debit cards as acceptable payment, but only a limited number companies will take them for life insurance. There are now a few final expense companies have finally caught on and accept the Direct Express cards as a valid form of payment which also happen to be some of the best final expense burial plans. These companies include Trinity Life and Transamerica for simplified issue whole life. If you need to go with a Guaranteed Issue plan, Gerber Life and AIG are the companies to use.
What companies offer Final Expense plans that accept debit or credit cards?
The policy is Whole Life Insurance issued as either a Simplified or Graded policy. Trintiy Life accepts regular debit or credit cards with Visa or Mastercard in addition to the direct express cards. It also includes an accelerated living death benefit at no additional cost. This means that if you are diagnosed as terminally ill and expected to die within the next 12 months, or will be confined to a nursing home until death, you can have your policy benefits while you are living.
Simplified Issue – Age 50-85 Amounts $2,500-$25,000- Immediate death benefit upon the effective date of the policy. Be sure you check with the agent to make sure you will pass the weight chart. This will tell you what level you would start at for even before you apply.
You also need the tell the agent if you have applied for life insurance in the past and been rated, declined, modified, cancelled or postponed. This will likely affect your approval. The agent should be able to call and get a tentative answer before you formally apply.
Graded Death Benefit – Age 50-80 Amounts $2,000-$10,000- The first year is practically the same as other companies for their graded or modified benefit, but it’s great in the second year. If the person dies in year two, 50% of the death benefit will be paid to the beneficiary instead of just a return of premiums and a small interest payment.
Transamerica’s Final Expense burial insurance is a Whole Life policy that has 2 levels of coverage, immediate called Immediate Solution and the graded policy called Easy Solution. Immediate solution offers the product at preferred and standard rates. The immediate solution policy includes the accelerated death benefit and in some state the nursing home benefit at no additional cost.
There is no weight chart on either level of coverage and they even offer a 10 Pay policy on the Immediate Solution. The 10 pay option is great for people that want to minimize expenses later in life, and are willing to pay extra now. After ten years of premium payments, the policy will be “paid up”. This is one more way to help plan for retirement.
Immediate Solution – Ages 0-85 Amounts $1,000 – $50,000 (maximum benefit varies with age) Immediate level death benefit. Accidental Death is available for ages 18-70 for an additional premium and is equal to the death benefit.
Easy Solution – Ages 18 – 80 Amounts up to $25,000 Death benefit pays 30% if death occurs in the first year of the policy, 70% in the second year and 100% upon the 3rd year and after.
Why companies want you to pay by some type of automatic payment
There are several reasons that companies don’t want to send you a monthly bill that you in turn send in a check or money order. The first reason is that it cost’s companies more to generate the bill twelve times a year and then pay the postage on top of it. Then if the premiums are not received in time, they have to regenerate a bill with a notice and pay the postage again. When a policy holder pays by automatic bank draft, they don’t get monthly notices so no postage is paid, and the the money is scheduled with the bank to come out on a certain date month after month.
The other reason is something called retention. Policies that are set up by an automatic draft usually have a much lower lapse rate, so the policies are paid on time, and the client can’t forget to pay the bill therefore keeping them from getting cancelled for non-payment. There are only a handful of companies that will accept monthly payments by mailing in a check or money order. The companies really push for some type of automatic deduction.