Final Expense Insurance
Understanding Final Expense Life Insurance
Life insurance is important to carry when you have a family who depends on your income to survive. Final expense life insurance is an alternative type of plan for those who no longer have dependents that rely on them for monetary reasons. This type of policy gives out a small death benefit to help cover the expenses that remain from your funeral and end-of-life care. These costs can add up quickly and usually aren’t planned for as not many people want to think about the end. Without the proper coverage, your loved ones could be saddled with tens of thousands of dollars in bills and expenses.
Final expense life insurance is coverage that is specifically used to cover the cost of your death and funeral arrangements. The death benefit that is paid out can be used for final medical bills, end-of-life care, cremation, burial, caskets, urns, and much more. Since the plan is permanent life insurance, as long as you continue to make monthly premium payments the coverage will continue. However, unlike other permanent policies, final expense life insurance doesn’t require more than answering a few questions to become qualified.
Types of Final Expense Insurance
When purchasing final expense plans there are two types that you should consider, guaranteed issue life insurance and simplified issue life insurance. Below is a quick summary of both and their benefits:
- Guaranteed Issue Life Insurance – This policy is geared towards high-risk individuals and will insure anyone who doesn’t currently have a terminal illness. The plan tends to be more expensive than other options but does provide a maximum coverage of $25,000.
- Simplified Issue Life Insurance – Anyone who is considered a moderate risk and might not qualify for a full life insurance plan can gain coverage under this policy. Filling out a medical questionnaire is required, but typically a medical exam is not. With a $50,000 maximum coverage, there should be plenty to cover any final costs.
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Cost of Final Expense Plans
Since final expense insurance doesn’t require a medical exam and the typical policyholder is usually older, the plans can be higher when compared to others. For example, the cost of final expense insurance is roughly the same as term insurance, but you only receive a fraction of the benefits. On average the monthly cost can range from $75 up to $150.
Have Questions About Final Expense Plans?
When it comes to planning for your own death, the process can be scary and intimidating. The process of selecting a policy that will take care of your family is intimate and you deserve to have an experienced agent help you with the decision. Here at Advanced Insurance Concepts, we take pride in helping our clients make the best decisions for their future and their families as well. To speak with one of our team members give us a call today at 816-476-8191.