Getting Down To Basics with Insurance

Unique Features of Final Expense Life Insurance

A loved one’s passing is usually the most difficult experience we can ever have. But besides the emotional stress, we also have to take care of end-of-life medical costs and funeral expenses. This combination can be extremely exhausting, physically and mentally, to the surviving family. To relieve some of the pressure, final expense life insurance was created.

But with all the different types of life insurance products that seemingly overlap in terms of coverage, what makes final expense insurance unique?

Life Preparedness as the Focus

Regular life insurance policies typically don’t include cover for funeral preparation costs. Caskets alone, depending on material and style, can go as high as $10,000. This excludes other usual funeral costs like preparation of the body, transportation, headstone, flowers, and so on. Final expense insurance lets the family deal with and eventually overcome their grief without worrying where to get the money to cover the bills.

A Whole Life Policy

In traditional whole life insurance, the death benefit and insurance premium are often the same all throughout the policy’s life. Most of these policies last for the life of the policyholder, with some building cash value as well. Whole life insurance is sometimes termed permanent life since its validity is no limited to a specific timeframe unlike term insurance.

Cost Effectiveness

Because it’s usually used for funeral costs, the coverage amount of final expense insurance is often lower than regular policies. People usually spend some $10,000 to $20,000 to insure themselves, so final expense insurance premiums are notably more affordable compared to bigger policies.

Simple Qualification Process

Because the coverage amount is less than most types of insurance products, some final expense policies require no medical tests for qualification purposes, and are simply based on an applicant’s answers to questions on their form.

So who can benefit from final expense insurance? First and foremost, it never expires (premiums need to be paid, of course) and it holds a cash value over time. Because the death benefit – around $5,000 – $25,000, is less than traditional insurance, it is generally easier on the budget. This makes final expense coverage a smart option for seniors who don’t want to burden their families with their end-of-life expenses.

On the other hand, not just seniors will find benefit in final expense insurance. Anyone who wants to pass without leaving their families with financial issues should look into purchasing a life insurance policy. By asking for multiple quotes – including a final expense quote – from different insurers, deciding on the right coverage will be easier.

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