November 18, 2019
Final Expense Insurance
Final Expense Life Insurance Policies Are an Affordable Way to Provide Security to “Senior Citizens”
Whether it has a gentle name, like “final expense,” “memorial” or “pre-need insurance,” or is bluntly called burial insurance, there are a variety of plans being sold to people who want to make sure they’ve tied up all their financial loose ends before they depart this life. Burial insurance is, in fact, a form of life insurance, and can be a term or permanent life policy. Many insurance companies sell it, and it is sometimes included in the pre-need packages offered by funeral homes.
If you are concerned about paying for a funeral, settling debts, and handling other obligations that come with the time when a loved one passes away, this can be a good alternative for you. You should look at all of your alternatives, which would include finding out how much the premiums would be for the individual you want to cover. Then you can make the best choice for your family.
Final Expense Life Insurance
Final expense insurance is designed to cover the bills that your loved ones will face after your death for your medical bills and funeral expenses. Final expense is also known as burial insurance mentioned above.
While most people don’t like to talk about end-of-life issues, it is important to plan for them. Expenses associated with death, such as caskets and embalming, can have a substantial financial impact on those you love. Final expense life insurance can help protect loved ones from having to pay these costs out of pocket.
While the thousands of dollars that a funeral can costs, seems like a lot of money, it is rather small in the realm of life insurance benefits. That is why funeral policies are a very affordable form of life insurance, even for older people and those with health conditions! And even though the face values seem small, it is enough money to pay for burial and other expenses. A final expense life insurance policy is a smart way to buy exactly what you need.
Around 2014, the average funeral expense was around $8,500 and has exceeded that amount since then. In most cases, a basic funeral service will include a memorial, death certificates for the deceased, and housing the remains.
In addition to those costs, there are also charges involved for goods and services, such as transportation, preparation and embalming, use of the funeral home, a casket and headstone, a burial plot, gravesite, the burial service or alternatively, cremation. There may also be additional costs, such as flowers and the printing of memorial cards.
Things to look for in Final Expense plans:
Not all final expense insurance plans are the same. Of course it’s important to compare costs. But also consider the following:
- Will your premiums change over time?
- How difficult will it be to qualify for this insurance plan
- Is there a waiting period during before the insurance is in force like there is with guaranteed issue life insurance
- Is there a medical exam to qualify
To answer these questions:
- NO, your premium will never increase
- If you can sign your name and a coarse you’re not already dying, Very little effort to qualify.
- Typically issued either immediately, or within 48 hours.
- NO, medical exam required.
Help YOUR FAMILY deal with DEATH EXPENSES.
Losing a loved one is an extremely difficult experience. Picking up the pieces while dealing with the accompanying emotions of the family can be very stressful to you and to everyone else. There are also many expenses associated with death that can, on average and will probably exceed $8,500.
Without any type of life insurance or the means to financially pay for the services, having a final expense life insurance policy is and will be the best way to provide for those much needed funds. Most families don’t have that kind of cash in hand and it can be hard coming up with those funds quickly. Final expense life insurance can save families from having to withdraw from their savings or sell precious assets to come up with the necessary funds required to bury a loved one.
KEY TAKEAWAYS
- Burial insurance is often marketed to seniors as being something crucial that they should buy to protect loved ones from big expenses after they’re gone, but it’s actually just a form of life insurance.
- Burial insurance is easy to get, with some companies requiring no medical exam; it’s inexpensive and is presented as a kindness an aging person can leave to loved ones.
- Burial insurance offers middling benefits for beneficiaries, compared to what life insurance pays out; meanwhile, the premiums for both are roughly the same amount, depending on what type you choose.
- Many people, even those in poor health, qualify for life insurance; if you pick term insurance, you may have issues renewing once the term ends, but with permanent insurance, you won’t have such problems.
- Setting up a savings account for the express purpose of handling burial costs is another option for people who are older or ailing and want to help their family with expenses.
Burial Insurance vs. Life Insurance: What’s the Difference?
If you are a senior citizen, or if you have parents who are in their retirement years, you may have noted the expense of funerals these days. The price of a very moderate funeral averages will be around $8,500 and can cost a lot more depending on the circumstances! If you do not have that much cash waiting around for an emergency like a funeral, then you may want to start thinking about how you are going to pay for a funeral expense.
Likewise, a deceased person many leave some outstanding bills, and loved ones may incur expenses while they travel to a funeral or may have to transport the body.
Final expense policies are small face value whole life policies. These can usually be purchased for face values (death benefits) from a couple thousand dollars and up. Some may even go up higher but these can get very expensive for older individuals and for those in poor health. The rates are level for the rest of your life, and these whole life policies do not expire after a set term. They cover you when you need coverage the most! Even seniors on fixed incomes find them affordable.
Different insurance companies have come up with policies to meet the needs of different individuals. Some final expense policies offer immediate protection. An individual can be a senior citizen, but they usually need to be in fairly good health to purchase these. For people of any age with health conditions that would get them declined for most life insurance, guaranteed issue life insurance policies are the answer!
A guaranteed issue life insurance policy usually uses a waiting or “vesting” period instead of health questions. If the insured person survives the waiting period, their beneficiaries will inherit the entire face value. If they should pass away, their premiums will be refunded to the beneficiaries with a stated interest rate. For a person who cannot qualify for other life insurance, these types of policies are great alternatives.