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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. Such a combination can be very draining, both mentally and physically, to the surviving family. This is the reason behind the creation of final expensive life insurance.

But with the whole variety of life insurance products that seem to provide the same coverage, what final expense insurance features make it unique?

Focus on Life Preparedness

Most life insurance policies don’t provide specifically for the costs associated with funeral preparation. Depending on material and style, a casket alone can cost more than $10,000. This is outside other funeral costs such as flowers, headstone, transportation and the rest. Final expense insurance lets the family deal with and eventually overcome their grief without worrying where to get the money to cover the bills.

A Type of Whole Life Policy

In traditional whole life insurance, the death benefit and insurance premium are often the same all throughout 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 referred to as permanent life because it has no timeframe limits as opposed to term insurance.

Cost Effectiveness

Since final expense insurance is intended for funeral costs, its coverage amount is generally less than that of conventional 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.

Simple Qualification Process

Given that the coverage amount is less than that of other insurance types, some final expense policies require no medical tests and are instead based on an applicant’s answers to questions on their form.

So who needs final expense insurance? First of all, remember that final expense insurance is permanent insurance, meaning it has no expiration (as long as premiums are paid) and maintains 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 coverage a smart option for seniors who don’t want to burden their families with their end-of-life expenses.

On the other hand, not just seniors will find benefit in final expense insurance. Anyone who doesn’t want to depart from this world with their families unprepared should seriously consider taking 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.

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