Final Expense life insurance is designed to help families with the cost associated with dying. You may have heard it referred to as burial insurance, end-of-life coverage, or funeral insurance.
If you have ever been involved in the funeral preparations of a loved one, you were probably shocked at the costs involved.
The average funeral costs are approximately $8,000. After $12,000 of medical expenses associated with dying, you are pushing $20K.
Many Americans don’t have $20K+ available. Many will go into debt to fund the funeral of a loved one. This deepens the grief after losing a family member.
The Final Expense policy is an easy affordable way to deal with end of life costs.
Final Expense policies are permanent insurance, unlike term life which expires after a period of time.
Here are the key benefits most Final Expense policies will give you:
Insurance companies process these claims quickly as well.
Final expense policies provide a simple method to invest in your family’s financial security.
Many funeral homes will sell final expense policies. The coverage is usually adequate on these policies. Sometimes, they can even be competitively priced, but there is a negative.
Your family is not the beneficiaries of these policies, the funeral home is. All proceed will go directly to the funeral home to cover the final costs. There will be no money leftover for your family.
With a traditional policy, you can assign the proceeds to any beneficiary you choose.
There are two basic types of burial policies: guaranteed issue and level coverage
Guaranteed Issue policies can secure coverage regardless of health issues.
No medical questions are asked. No medical exam is needed. You will not be turned down for a guaranteed issue policy. Guaranteed issue policies have a unique feature called graded benefits. Graded benefits deliver partial benefits during the first two years of the policy. During the first 2 years, the benefit will be a percentage of the coverage plus any premiums paid. After this 2 year “waiting” period, the full death coverage will be available.
Level Benefit policies are not guaranteed issue policies. Customers in good health with no medical issues are ideal for this type of policy. A medical questionnaire and exams are required for this type of policy. Don’t worry though. Medical underwriting is not as strict as a traditional life policy. Full coverage is available from day 1.
This is a great product if you don’t need all the benefits of a traditional policy, but don’t want to burden your family with Final Expense Costs.
Contact us and we can help determine if this product is a great fit for you.