On Options: My Experience Explained

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 the reason behind the creation of final expensive life insurance.

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

Focus on Life Preparedness

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 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 Type of Whole Life Policy

The death benefit and insurance premium in whole life insurance usually stay the same for the entire life of the policy. 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.

An Economical Option

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.

Hassle-Free Qualification

Since the coverage amount is lower than other types of insurance policies, there are final expense policies that don’t even need a medical exam for screening, and instead rely on applicants’ answers to questions on their form.

So who are the people who will benefit the most 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. 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 policies attractive to seniors who want their families spared from the burden of paying for their end-of-life expenses.

On the other hand, final expense insurance isn’t only good for seniors. 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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