Final expense insurance is meant to cover the bills that your precious ones can face after your death – think medical bills and funeral expenses. Final expense insurance is also referred to as burial insurance, since even bare-bones funerals cost thousands of dollars.
What is Final Expense Life Insurance Plan?
A final expense life insurance policy isn’t identical as what’s popularly referred to as “Life Insurance ”
With traditional life insurance, the worth of your policy will be $100,000 and higher depending on how much insurance you're feeling you need.
With Final Expense insurance, the worth of your policy is the amount of the estimated expense of your desired funeral and your last expenses.
While different types of life insurance may be much higher, it’s rare for final expense insurance policies to get higher than $25,000.
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 are going to be. That’s because the insurance company takes on a lot of risk when insuring older people, given the actual fact that they’re statistically closer to death. If you purchase final expense insurance once you’re 45, you’ll pay less monthly than if you wait till you’re 75.
Do i need Final Expense Insurance?
That depends. If you have already got permanent life insurance, your precious ones can use your existing policy to pay final expenses. If not, then you may think about a Final Expense policy thus your precious ones don’t need to foot the bill from their money. One important purpose is that social security only pays $255 upon your death.
Whether you decide on a life insurance policy that covers funeral expenses so some or simply a dedicated final expense insurance policy, you’ll be doing all your precious ones an enormous favor. Taking the time to consider and document your end-of-life wishes could also be a little uncomfortable now, however it'll make all the difference once the time comes.