In this article we’ll discuss the meaning of final expense insurance, along with what it can offer you and your family, so you can make an informed decision before you purchase a policy. Let’s get started!
What is Final Expense Insurance?
First let’s talk about what final expense insurance is and what its benefits are.
Final expense insurance is essentially a normal whole life insurance policy, but with some important differences. Final expense insurance consists of a smaller death benefit and is more affordable than traditional whole life insurance, plus it has a streamlined application process so it’s easier to be approved.
This type of insurance is specifically designed to cover funeral expenses, including burial, cremation, memorial service and so forth. Funeral expenses can be significant – starting around $4,000 for cremation and extending all the way up to $10,000 or more for a traditional burial. These costs may vary from state to state, but in general, you can expect an average of $8,000 for funeral expenses. Final expense insurance is specifically designed to cover these expenses so your loved ones don’t have to.
Since this type of policy is also considered whole life insurance, you don’t have to worry about expiring term limits. You’re covered as long as you keep up your monthly premium payments. That means even if you’re older or have pre-existing medical conditions, you can still qualify for final expense insurance to prevent your loved ones from being burdened with hefty bills after your passing.
Do I Need Final Expense Insurance?
If you’re wondering whether final expense insurance is something you need, here are a few questions to ask yourself:
Do I have a policy in place that provides for my funeral expenses? If the answer is no, then final expense insurance may be a prudent decision. We’ve already seen how costly funeral expenses can be, and you certainly don’t want that burden falling on your family and loved ones.
Do I have loved ones who would benefit from this policy? If you have children, grandchildren, or other family and loved ones, final expense insurance is an excellent way to not only defray funeral costs, but also to leave a little something extra behind. Final expense insurance doesn’t have to be used on your funeral – if your funeral is already covered by other insurance or if you’ve already made other preparations, then final expense insurance is just extra money that goes to your beneficiaries and can be used for any purpose. This means your family could take a trip in your memory, pay off property taxes or other debts, or just set money aside for a rainy day.
Am I at an age where final expense insurance is appropriate?
Truth be told, none of us know the date of our death. So any age is the appropriate age for final expense insurance, but this type is especially beneficial if you’re over the age of 70 or have pre-existing medical conditions where term life insurance may not be available to you.
Do I have additional expenses that will need to be covered after my death?
If you don’t have your final expenses or other financial obligations paid off, your family will bear the brunt of that burden after your passing. Final expense insurance is just one way to ease those burdens, but if you have more financial obligations than just funeral expenses, you may want to consider a traditional whole life insurance policy with broader coverage to take care of additional debts.
How Do I Get Final Expense Insurance?
If you think you and your family would benefit from additional coverage for funeral expenses, check with several final expense insurance companies to see what they offer and how much it will cost. By assembling several quotes side by side, you can compare rates and coverage and choose the one that best suits your needs and budget.
Have additional questions that we can help answer? An Americo Senior Life representative will be happy to help. You can either get a quote online with our simple application process, visit our FAQ center, or call 855-969-3952 today to speak with one of our customer service representatives who can answer any questions and provide you with options for your end of life expenses.