Discover What You Need To Know About Final Expense Insurance

Life is unpredictable—and death can be unpredictable too. You want to be sure your family will be financially able to handle your death. Final expense insurance can be part of your plan to ensure that’s the case. Final expense insurance offers a way for you to help your loved ones pay for your funeral costs, so that they’re not burdened with expensive bills while going through a difficult time. Keep reading to learn more about what final expense insurance is and why it might be right for you.

Final Expense Insurance: What is it?

Final expense insurance is a type of life insurance. But unlike traditional life insurance, its sole purpose is to help pay for the funeral and associated costs of the death of the insured. For many people, the idea of leaving their loved ones is hard enough without also leaving them stuck with hefty funeral expenses.

Discover What You Need To Know About Final Expense InsuranceFinal expense insurance offers insurance policies to pay for part of or all of those final expenses. Almost anyone can buy one of these policies. Policies typically range between 5,000 and 50,000 dollars. While the premiums will be higher, there are many policies that don’t require any medical exam.

How Does it Compare to Traditional Life Insurance?

A traditional life insurance policy can be used by the beneficiaries in many different ways. Education, daily living expenses, funeral expenses, even mortgages can be paid for through traditional policies. In comparison, a final expense insurance policy is expressly for paying costs associated with the death of the insured.

Also, while $50,000 is in the high-end range for a final expense policy, $200,000 is at the low-end for a traditional life insurance policy. This doesn’t mean that final expense insurance is cheaper. It all depends on the specifics of the policy holder and the policy.

How Much Coverage is Enough?

How much coverage you’ll need depends on a variety of factors. The best course of action to take is to set aside a time when you can discuss final expense coverage amounts with your loved ones. No, it’s not a pleasant subject to talk about. But it’s also not a pleasant thing to go about alone. You may need someone to look into typical funeral expenses in your area.

Calculate not only for costs of the actual funeral, but for burial expenses as well. Speaking with a funeral director can help you to not leave out important details such as flower arrangements, service, procession, and other costs. And don’t wait until the last minute. Discuss your desires and plans with your family members or leave details in a last will and testament.

Is Final Expense Insurance Right for You?

In conclusion, if you are already insured through a traditional life insurance policy which will pay for your funeral costs, then you won’t really need final expense insurance too. But, if you’re currently uninsured and don’t want to stick your family with expensive funeral costs, then final expense insurance may be a good solution. Figure out how much coverage you’ll need and try to leave room for unexpected costs. While it’s not an easy issue to think about, it’s the responsible thing to do for the sake of your loved ones.