The Benefits of Final Expense Life Insurance

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Final expense life insurance is a type of insurance designed to cover the many bills your loved ones will face after your death. Also referred to as burial insurance, these policies cover costs, including medical bills and funeral expenses.

The average cost of a funeral is over eight thousand dollars, and final expense policies protect your loved ones from undue stress and financial hardship during this trying time. 

The Basics of Final Expense Insurance

A final expense policy is not the same as your standard whole or term life policy. Life insurance is proportionate to your earning power and provides your dependents and loved ones supplemental support for years to come. 

In contrast, a final expense policy is proportionate to the expense of your end of life costs. While other forms of life insurance can cover many times your annual income, final expense insurance are smaller amounts, earmarked to cover funeral and associated costs. 

Do you need Final Expense Insurance?

The answer to whether you are a good fit for a final expense policy can vary from person to person. If you have a whole or term life policy, those funds can be used to pay for your final expenses. However, if you have a term policy and outlive the policy term, you may want to consider a final expense policy in addition to your current policy. 

An alternative is having your family fund – or self-insure – your end of life expenses. It’s best to assume that funeral expenses will cost at least $10,000, depending on the arrangements. And be sure you consider any incidentals like catering or unpaid medical bills. 

Remember that the lump-sum death payment from Social Security is currently only $255, which is insufficient to cover even a fraction of the potential costs.

The Cost of Final Expense Insurance

As with other types of policies, the cost of this protection will vary depending on your age premium amount. So, for example, if you purchase a policy in your fifties, it would be less than if you buy a policy when you are 75. That in mind, the premiums of final expense insurance are generally much more affordable than whole or term life policies, and thus a popular option for those who may not be able to afford the high cost of life insurance. 

Whether you decide on a more expensive life insurance policy that can cover funeral costs or a more affordable final expense policy that covers your loved one’s immediate expenses, you’ll be doing your loved ones a big favor. Nobody enjoys having to consider these end-of-life issues, but taking the time now to discuss and document your wishes will make a big difference in when that time comes. 

Final Expense Life Insurance Plans offer low rates that will never increase, with benefits that never decrease. If you are not sure, the best first step is to learn more and get a free, no-obligation quote.  

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