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Making end-of-life plans is never an easy task. It’s hard to think that far into the future, let alone the emotional difficulties that come with planning for your own end of life.
Another aspect of it that is difficult is the multitude of options there are available to you, especially when it comes to life insurance. Doing your research and determining the plan that’s right for you takes a lot of time, and it can be difficult to know whether one option is right for you or not.
That’s why we have gathered all the information you need to know about final expense life insurance into this one blog, to save you time as you make these difficult decisions.
Also Read:
- Best Life Insurance for Seniors in the US
- How to Maximize Your Pension Using Life Insurance
- What Is Universal Life Insurance: A Total Guide
What Is Final Expense Life Insurance
Before you decide whether final expense life insurance is right for you, you should try to find out all you can about it. So, let’s start with a broad question: What is final expense life insurance?
Final expense life insurance is a form of whole life policy, that pays medical and funeral bills when you die.
Due to the ‘intent’ of the coverage being so specific to these end-of-life expenses, it has also become commonly known as burial or funeral insurance. As this is a form of whole life insurance, so long as the premiums on it continue to be paid on time, there is no expiration of coverage.
The premiums are made in very affordable monthly payments and are fixed over your lifetime, so you don’t have to worry about your rates being randomly increased without your approval. In most cases, there is no medical exam required for getting this type of life insurance like some other policies. Instead, you simply need to fill out a health questionnaire.
Now we’ve gone through what burial insurance is, we should also discuss who it’s for. As discussed, this aspect of life insurance is focused on covering end-of-life and funeral expenses, which is what makes it ideal for seniors.
Whatever your health situation is, if you’re a senior, end-of-life planning is an absolute essential. Final expense insurance is particularly popular with this demographic due to how affordable it is, the smaller benefit amounts, and the fact that its intent is specific to covering these final expenses, so the policyholder doesn’t need to worry about a lot of differentiating factors.
They know their family will be able to cover final expenses after their passing, and that sense of security is what many seniors are looking for. Having this security is valuable for seniors but can also be very valuable for anyone who wants to make sure their loved ones are provided for in the case of their unfortunate passing.
You can even buy final expense life insurance for your parents if that’s the situation that makes the most sense for you.
Making end-of-life plans is never an easy task. It’s hard to think that far into the future, let alone the emotional difficulties of planning for your end of life. Another aspect of it that is difficult is the multitude of options available to you, especially when it comes to life insurance.
Doing your research and determining the plan that’s right for you takes a lot of time, and it can be challenging to know whether one option is right for you or not. That’s why we have gathered all the information you need about final expense life insurance into this blog to save you time as you make these difficult decisions.
What Factors To Consider Before Opting For Final Expense Life Insurance
Now, you know what final expense life insurance is and who it’s best for. The next thing to know is the benefits and factors to consider in your purchase. For example, did you know that in the last 40 years, funeral costs have increased 991%? Funerals went from an average of $700 in 1960 to an average (without a vault) cost of $7,848 in 2021.
With a vault, this average cost goes up to about $9,420. That’s a lot of money to worry about, especially for the loved ones you’re leaving behind, who already have a lot to deal with. That’s why final expense life insurance is designed specifically to help cover those funeral costs and ensure your family is not stuck with a huge bill.
Another factor to consider is medical bills. Currently, prescription and medical costs are high in the US, and when insurance plans are not affordable for many, this presents another hurdle.
A final expense life insurance plan may be cheaper than the average life insurance plan and helps to right a lot of financial insecurities you may have towards the end of your life. In addition, it will protect your loved ones from financial responsibility when it comes to outstanding medical bills after the policyholder’s passing.
Especially with the high medical costs in the US, this creates a considerable amount of relief for those planning their end-of-life expenses.
Now, the payout amount of final expense life insurance is less than you will see with some other types of life insurance, so that is something worth considering. Another benefit of burial insurance is that it’s a very flexible benefit.
When the beneficiary is paid out, they can use the money for any needs they may have, even if you originally got it to help cover your funeral expenses.
Research and Financially Plan Ahead
Even if you’ve already decided that final expense life insurance is for you, two crucial parts of the insurance planning process are doing your research and getting multiple quotes.
Think about your current expenses and whether those will continue after your passing. Will you have a lot of debts incurred in the future?
Think about your beneficiaries and who will be the most in need of your final expense payout. Talk to funeral homes and determine how much a funeral generally costs in your area. The costs can vary greatly based on what services you want and what area you’re in. Finally, if you determine a need, find out which final expense life insurance plan is best for you and your loved ones.
Easy Application Process
Another benefit of final expense life insurance that is valuable to many is the ease of the application process. If you’ve done your research and elected to go with final expense life insurance, there are a few simple steps to get a policy for you. First, answer a quick set of pre-qualifying questions. After this, you’ll be able to get a free quote. Next, review the rates and determine which ones are affordable for you. After this, you need to apply and get approval, and you’ll be all set! Be sure to review your coverage often to ensure you’re happy with what you’ve chosen. Another thing to ask your agent about is your pre-payment options to help save you time in the process.
Final expense life insurance is an excellent choice for those who want their family and loved ones to not worry about incurring significant end-of-life expenses. It’s simple, quickly understood and applied for, and is less expensive than many other life insurance options. Still, it is very focused on end-of-life expenses, so if you want more coverage, it’s worth looking into other options. Everyone is going through their own unique journey, so don’t be afraid to ask difficult questions throughout life insurance. By doing your research and considering all the factors, you’ll be able to choose the right plan and take care of your family, even after you’re gone, which is a very fulfilling feeling.
