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Final Expense Life Insurance – What Makes It Different

The hardest thing we can ever face in life is usually the demise of a loved one. But besides the emotional stress, we also have to take care of end-of-life medical costs and funeral expenses. 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 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

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 does not include flowers, transportation, preparation of the body, headstone and many more. 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 referred to as permanent life because it has no timeframe limits as opposed to term insurance.

An Economical Option

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.

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 is why final expense coverage is a wise option for seniors who want to free their loved ones of the burden of their end-of-life expenses.

On the other hand, not only seniors will do well to secure their families with 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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