Losing a loved one is difficult. Having to pay out-of-pocket for funeral and burial expenses only adds to the stress. This section introduces an option available to you that will alleviate the financial burden of costs and debts left behind by a family member.
These expenses are often covered by a whole life policy, commonly referred to as a “final expense” policy. The death benefit is paid to a beneficiary to cover any costs or debts left behind. If you pre-plan your funeral you can document your final wishes and allocate how much of a policy benefit will go towards final arrangements. Claims can be paid in as little as 24 hours.
The costs associated with the care of your body after death are typically around $9,000 or more. This amount does not include any debts or bills you might have acquired, which would also be left for your family to pay. With final expense insurance, one would select a policy amount to cover these costs. Typically, policies range from $10,000 to $100,000. The monthly cost for a final expense policy depends on several factors like coverage amount, age, and health. Monthly premiums are typically between $30 and $70.
Many policies have these features:
The difference between typical life insurance and final expense insurance is that life insurance policies are primarily intended to replace income. This is most important to families in early life, or when they are working, raising children, and making car payments. As people age, traditional life insurance policies may not fit with their lifestyle. This allows the older generation to turn to final expense policies at a much lower cost.
Should you be debt-free, or have funds set aside for funeral and burial expenses, you may consider a policy to assist with medical bills accumulated near the end of life. Medicare and other senior health insurance programs typically have a limit on coverage for items like inpatient respite care, emergency care, and continuous home care. A final expense policy might cover these expenses completely, protecting loved ones from this financial responsibility.
Should you wish to discuss these policies with a licensed representative in your state, simply return to the top of the page and enter your contact information