It’s Not Too Late – There is No Better Time Than Now


  It’s Not Too Late – There is No Better Time Than Now

Twenty years ago, my clients made a sound financial decision. They purchased a 20-year term life insurance policy on the husband, designed to cover their mortgage and provide the equivalent of one year’s salary—just enough to give the family breathing room if the husband (the primary bread winner) died. A smaller term policy was taken out on the wife. At the time, this seemed sufficient. Based on their family health histories, they believed the policies would outlast them.

But time has a way of surprising us.

Now in their seventies, the couple has outlived their term policies. Their mortgage is paid off, but new concerns have emerged. Both now face health challenges that may render them uninsurable for traditional life insurance. And without any active coverage, they are staring down a common question: how to prepare financially for the inevitable—funeral and burial expenses—without burdening loved ones.

Here are the options that I suggested to them; I hope that this will help you too.

Guaranteed Issue Life Insurance
This type of policy is designed for individuals who may not qualify for traditional coverage due to age or health. No medical exam is required—just a simple application with minimal health questions. While coverage amounts are modest (often capped around $25,000), this could be an ideal solution to secure the $10,000 needed for funeral costs. Note: These policies typically have a two- to three-year graded death benefit period, meaning if death occurs within that time (unless accidental), only premiums paid plus interest are returned.

Final Expense Insurance (Simplified Issue)
Another option is simplified issue life insurance, which does involve a short health questionnaire but no medical exam. Coverage is typically between $5,000 and $50,000. Premiums are higher than term insurance but fixed for life, and policies often build cash value.

Prepaid Funeral Plans
If insurance isn't feasible, the couple can explore prepaid funeral arrangements directly with a funeral home. While not insurance, this locks in today's prices and can be paid in installments.

Final Thought:
Aging brings uncertainty, but planning can restore peace of mind. Even with health concerns, options exist to ensure dignity and financial protection for you, your spouse, and loved ones. Let’s have that talk that you have been putting off. Let me help you get YOUR house in order – it’s not too late – there is no better time than now.

Bye for now,

Brenda “Bren” Sheriff, Certified Senior Advisor (CSA)


THIS WEEK’S QUIZ: Is there a new retirement age for Social Security? 

 

Answer to last week’s quiz: Open enrollment for Medicare is October 15 through December 7, 2025, for Medicare coverage beginning January 1, 2026.

To get a more detailed answer to last week’s QUIZ question or for any financial questions that you may have, please contact me: 773-817-0601 or basheriff1@gmail.com

Disclaimer: The illustrations presented in this column are not, nor are they intended to be, legal, financial, or any other licensed professional advice, you should contact the licensed professional of your choice for advice on your individual situation.


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