What is Final Expense Insurance?
Preparing for a funeral can be an exhausting event but making sure you have the financial resource to cover the cost of a burial and funeral are extremely important for personal estate planning. Whether you’ve been to a funeral before or you’ve experienced the loss of a loved one, it is important to know that final expense insurance can be depended on to provide a financial safety net to cover these costs. Final expense insurance is a superior product for seniors that remove the financial obligations of your family to celebrate your life with friends and family when a person dies.
While standard whole life insurance policies can provide funeral and burial coverage, final expense insurance policies provide superior coverage given the facts they contain a lower face value than traditional life insurance policies. The cost for a final expense policy is affordable and can provide thousands of dollars to pay for a basic funeral service, casket, cemetery plot and flowers. Term or whole life insurance on the other hand often exceeds an individual’s needs.
Our Final expense Insurance policy can provide affordable protection that pays benefits directly to the person you choose to take care or your outstanding medical bills, unexpected expenses or debt that you leave behind.
- We offer competitive premiums that fit many budgets.
- The life insurance cannot be cancelled for any reason as long as premiums are paid
- There is no medical exam; coverage is based on answers to a few health questions.
- Paid benefits do not decrease.
- Premium rates never increase.
- Benefits are paid to your beneficiary.
Final Expense Insurance companies vary but we carry the best in the Market. To get a Final expense quote please feel free to contact us and or download your free product guide.
FINAL EXPENSE INSURANCE: The Basics
A final expense life insurance policy isn’t the same as what’s popularly known as “insuring your life.” With term and permanent life insurance, the value of your policy is proportionate to your earning power now and for the rest of your life. With funeral insurance, the value of your policy is proportionate to the expense of your desired funeral. While other forms of life insurance can top a million dollars, it’s rare for final expense insurance policies to get above $20,000.
IS FINAL EXPENSE INSURANCE EXPENSIVE?
That depends on your age, and there’s no delicate way to say this. The older you are, the higher your premiums will be. That’s because the insurance company takes on more risk when insuring older folks, given the fact that they’re statistically closer to death. If you buy final expense insurance when you’re 45, you’ll pay less each month than if you wait until you’re 75.
CAN’T I JUST PRE- PAY FOR MY FUNERAL?
You certainly can, and some people do. This approach has advantages and disadvantages. When you pre-pay for your funeral, you get to personalize it to your taste. You can grill different funeral directors until you find one you love. You can pick out the perfect casket and the choicest plot in the cemetery. Another advantage of pre-paying is that it will most likely prompt you to talk your choices over with loved ones, leaving them more confident that they know your wishes.
Different states have different guidelines governing funeral pre-payment. The government wants to protect people from writing checks to unscrupulous folks who will take the money and run, or charge your family extra on top of what you pre-pay. Before you pre-pay, check your state guidelines for how the money will be held until your death. Make sure you know what you’re paying for. Most importantly, are you locking in the rate for your funeral, or is there a chance your family would face an up-charge when the time comes? If you do any pre-planning or pre-payment, it’s important to tell a loved one what you did and where you keep the documentation.
The disadvantage of pre-payment is that it’s less flexible than burial insurance. Will you or your family be able to get a refund if your funeral plans change? Will you lose the money you pre-paid if you move to a different area? What happens if the funeral parlor goes out of business? With final expense insurance, your surviving relatives will receive a payout they can spend anywhere. If you go with final expense insurance instead of pre-payment, you have less control, but your family has more flexibility. The choice is yours.
If you want to leave a clear indication of your wishes without necessarily locking in the funeral home, you could always combine burial insurance with a document stating your preferences. Kept wherever you keep your will (you have a will, right?), this document would cover issues like burial vs. cremation, open vs. closed casket. etc.