Hank McClellan, representing Insurance Navigator LLC and Medicare Mentors LLC, discusses final expense planning in this video.
Key topics covered include:
Final Expense Life Insurance: This is a whole life insurance policy designed to cover end-of-life costs so that loved ones do not have to bear the financial burden. The speaker notes that waiting until an older age to obtain these policies often results in higher monthly premiums for smaller coverage amounts.
Funeral Trusts: As an alternative, the speaker introduces a funeral trust program. Unlike a whole life policy, this option does not require monthly premiums; instead, individuals can contribute a lump sum or add money as they can afford it.
Asset Consideration and Medicaid: A significant advantage of a funeral trust is that it is typically not counted as an asset, whereas a final expense whole life policy usually is. This distinction is important for individuals who may need to “spend down” their assets to qualify for Medicaid, which generally limits assets to approximately $2,000.
Estate Trusts: The speaker also mentions an estate trust option for larger sums of money, which allows any remaining funds not used for final expenses to be passed on to beneficiaries.
For more information on these planning options, the speaker invites viewers to call 720-984-1384.