Life is filled with unexpected events, and the best we can do is make sure we’re prepared for these events as they happen
Final expense insurance is one of these protections, as it helps to save loved ones from any sort of financial burden incurred should the worst happen unexpectedly or expectedly. Many think that a simple life insurance policy covers this need, but this isn’t always the complete truth.
Life Insurance And Final Expense Policies
Life insurance and final expense insurance are two things that do get confused quite often. A life insurance policy will typically provide payment to cover ongoing bills, make up for lost wages or benefits, and funeral expenses…but not immediately. With the typical life insurance policy, a death certificate must first be filed, a claim request made, and a waiting period patiently waited through before any compensation will be given. All in all, this is a process that can take anywhere from weeks to months.
A final expense policy takes away a lot of the pressure felt having to cover those final expenses
Rather than waiting through the certificate and claims period, the money is provided straight away, so it can be used to plan and pay for the funeral process, rather than waiting for reimbursement later. The average cost of a funeral in North America today is anywhere between $7,000 and $10,000; a sum that can place a great deal of pressure on the average American family.
Final Expenses Policy Fast Facts
The best way to get acquainted with final expenses policies, how they work, and just why they are a necessity in today’s age is with some fast facts. A few fast facts about the typical final expenses policy are:
Final expenses policies are specifically for final costs – Final expense insurance policies are designed to pay out for final expenses specifically. Some of these expenses may include the funeral service, flowers, cremation, casket, burial, and other related expenses.
Quickly pays out – The average final expense insurance policy will pay out within 24 to 48 hours after the policy holder has died, allowing the family to use the money to plan and pay for funeral services and other final expenses. It is not rare for these policies to pay out even without a death certificate.
Whole life policy – Final expense insurance is a whole life policy, which means that premiums do not increase and coverage does not decrease as long as premiums are paid on time without lapse.
Rather than waiting for a life insurance policy to reimburse, final expense insurance ensures necessary funds are available when the family and loved ones need it most
Experiencing the death of a loved one is a difficult and stressful situation already and adding a financial crisis into the mix in order to cover final expenses until reimbursement doesn’t make the experience any easier. To learn more about how final expense insurance helps families, contact Living Legacy today.