Unique Features of Final Expense Life Insurance
The toughest experience we can ever have is usually a loved one’s death. But on top of the emotional trauma, we also have to deal with the practical consequences, including end-of-life medical bills and funeral costs. This combination can be extremely exhausting, physically and mentally, to the surviving family. This is the reason behind the creation of final expensive life insurance.
But considering the entire range of life insurance products that all seem to provide the same benefits, what are the unique features offered by final expense insurance?
Life Preparedness as the Focus
Regular life insurance policies typically don’t include cover for funeral preparation costs. Caskets alone can cost as high as $10,000 or even more, depending on style and aesthetics. This excludes other usual funeral costs like preparation of the body, transportation, headstone, flowers, and so on. With a final expense policy, the family does not have to worry about paying for these essentials, and can instead simply deal with their grief.
A Whole Life Policy
In regular whole life insurance, the death benefit and insurance premium are typically the same at any stage of the policy’s life. Such policies typically last the entire life of the policyholder and may also increase in cash value. Whole life insurance is sometimes termed permanent life since its validity is no limited to a specific timeframe unlike term insurance.
A More Economical Option
Because it’s usually used for funeral costs, the coverage amount of final expense insurance is often lower than regular policies. People usually spend some $10,000 to $20,000 to insure themselves, so final expense insurance premiums are notably more affordable compared to bigger policies.
Quick, Hassle-Free Qualification
Because the coverage amount is less than most types of insurance products, some final expense policies require no medical tests for qualification purposes, and are simply based on an applicant’s answers to questions on their form.
So who are the people who will benefit the most from final expense insurance? First and foremost, it never expires (premiums need to be paid, of course) and it holds a cash value over time. Since the death benefit is only about $5,000 to $25,000 – significantly less than conventional insurance – it is often lighter on the budget. This makes final expense policies attractive to seniors who want their families spared from the burden of paying for their end-of-life expenses.
On the other hand, not just seniors will find benefit in final expense insurance. Anybody who wishes not to leave the world with their families unprepared should take out a life insurance policy. By asking different providers for quotes, including a final expense quote, it will be easier to decide which type of coverage is best.