The Uniqueness of Final Expense Life Insurance
The toughest experience we can ever have is usually a loved one’s death. But besides the emotional stress, we also have to take care of end-of-life medical costs and funeral expenses. The surviving family can find this combination mentally and even physically debilitating. This is the reason behind the creation of final expensive life insurance.
But with the whole variety of life insurance products that seem to provide the same coverage, what final expense insurance features make it unique?
Focus on Life Preparedness
Typical life insurance policies usually don’t have specific coverage for funeral preparation costs. Depending on material and style, a casket alone can cost more than $10,000. This is outside other funeral costs such as flowers, headstone, transportation and the rest. A final expense policy allows the family to deal with and eventually resolve their grief, instead of having to worry about finances.
A Type of Whole Life Policy
In traditional whole life insurance, the death benefit and insurance premium are often the same all throughout the policy’s life. These policies usually last the whole life of the policyholder and may build some cash value too. Whole life insurance can be called permanent life because it doesn’t have timeframe limits like term insurance does.
An Economical Option
As it is meant for funeral costs, a final expense policy’s coverage amount is often less than than that of a typical policy. 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
Given that the coverage amount is less than that of other insurance types, some final expense policies require no medical tests and are instead based on an applicant’s answers to questions on their form.
So who are the people who will benefit the most from final expense insurance? First off, take note that final expense insurance is permanent insurance, so provided premiums are paid, it will have no expiration and it will have a cash value over time. Since the death benefit is only about $5,000 to $25,000 – significantly less than conventional insurance – it is often lighter 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 different providers for quotes, including a final expense quote, it will be easier to decide which type of coverage is best.