Understanding Life: What is final expense insurance – and do I need it?

The kids are out of college. The house is paid off. As you cross many of life’s biggest expenses off your list, you may not need as much life insurance coverage as you once did to protect your family. But final expense insurance can help with one cost that everyone still needs to cover: their burial.

Sure, we know thinking about your own funeral isn’t pleasant. For your family, though, final expense insurance can help them avoid even more unpleasant financial issues after you’re gone. The average cost of a funeral can be $10,000 or more, and end-of-life expenses like medical bills can push that number even higher. For many people, a final expense policy is an affordable way to earmark money specifically for those costs. Here’s a closer look at how it works – and whether it’s the right fit for you.

How final expense insurance works

Put simply, final expense insurance is designed to cover the actual cost of your death. This can include funeral services, items like a casket and hearse, or medical and credit card bills. You can make your partner or child the beneficiary for your policy, or even assign it directly to the funeral home that you want to handle your arrangements. Planning for those expenses ahead of time is important to make sure you don’t saddle your family with bills later. For example, some states have “final responsibility laws” where an adult child is responsible for paying a parent’s medical costs after they die.

Unlike traditional term or permanent life insurance, final expense coverage amounts are typically lower, ranging from about $5,000 to $50,000. Final expense is usually permanent insurance, which means you can keep the policy for as long as you keep paying it. In some cases, the policy will build cash value that you can take out later. For people who need a guaranteed way to pay for their end-of-life costs, final expense insurance is an attractive option because:

  • It’s affordable. Since the coverage amounts are relatively small, final expense offers some of the lowest premiums around, especially if you’re older. A $10,000 policy costs around $50 per month on average, although that rate can vary depending on your age, health, and other factors.
  • It’s easy to qualify. Worried you can’t get insured because of a pre-existing condition or other health issues? You’re in luck. Final expense insurance doesn’t require an exam, and some carriers won’t even ask questions about your health. As a result, even people with major health concerns may be able to find coverage. Final expense is also available well into your later years, with many carriers willing to insure people up to age 85.
  • It offers fast access to cash. Once you die, your family or other beneficiary will typically receive the payout quickly so they can cover expenses that occur right away, like a funeral. Keep in mind some policies have a “graded period” of two to three years after you buy the policy. If you die during that time, your family may not receive the full payout. Consider it one more reason to buy coverage sooner rather than later.

Finding the right fit with final expense

For people over the age of 50, final expense insurance can be a smart way to cover that last big financial outlay. Since policies generally top out at $50,000, a traditional life insurance policy is a better way to go if you still have dependents at home or other significant expenses. Final expense can also supplement an existing life insurance policy, giving your family added peace of mind when they need it most.

Want to learn more about final expense insurance? Explore your options here

In the spirit of transparency, this blog post is for informational purposes only. We know how quickly things change, so we can’t guarantee the content and links to unaffiliated parties are up to date.

Does all this seem like a lot to process? Don’t worry! Call Us 888-502-5267. The insurance experts at Elite Insurace Brokers are here to help answer your questions, address your concerns, and guide you in the direction of a final expense life insurance policy that fits your needs and your budget. Visit us today to get a free,-strings-attached quote, and then come back often for more information and inspiration about life and life insurance!

Keep In mind in the spirit of transparency, Our blog post are for informational Purposes only. We know how quickly things change, so we can’t guarantee the   content and the links to unaffiliated parties are up to date.

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