Looking On The Bright Side of Options
The Uniqueness of Final Expense Life Insurance
The hardest thing we can ever face in life is usually the demise of a loved one. But on top of the emotional trauma, we also have to deal with the practical consequences, including end-of-life medical bills and funeral costs. This combination can be extremely exhausting, physically and mentally, to the surviving family. This is where final expense life insurance can make a huge difference.
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
Typical life insurance policies usually don’t have specific coverage for funeral preparation costs. Caskets alone, depending on material and style, can go as high as $10,000. This is outside other funeral costs such as flowers, headstone, transportation and the rest. 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
The death benefit and insurance premium in whole life insurance usually stay the same for the entire life of the policy. Such policies typically last the entire life of the policyholder and may also increase in cash value. Whole life insurance is sometimes termed permanent life since its validity is no limited to a specific timeframe unlike term insurance.
Because it’s usually used for funeral costs, the coverage amount of final expense insurance is often lower than regular policies. On average, people spend about $10,000 – $20,000 on personal insurance, which means final expense premiums cost a lot less than more comprehensive policies.
Quick, Hassle-Free Qualification
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. Because the death benefit – around $5,000 – $25,000, is less than traditional insurance, it is generally easier on the budget. This is why final expense coverage is a wise option for seniors who want to free their loved ones of the burden of their end-of-life expenses.
On the other hand, not just seniors will find benefit in final expense insurance. Anyone who doesn’t want to leave their families financially unprepared should consider getting this policy. By asking different providers for quotes, including a final expense quote, will make it easier to find the best policy for one’s needs and budget.