Planning for your final expenses doesn’t necessarily have to break the bank. It is entirely possible to plan ahead and plan for the essentials while taking advantage of a final expense insurance plan.
Planning for a funeral is definitely not something that should be left until the last minute. However, if you want to keep the funeral as basic as possible and only prepare for the essentials, then final expense insurance is a viable choice.
What Is Final Expense Insurance?
This is a type of insurance policy that covers the costs associated with your medical bills and burial expenses. While it is similar to burial insurance, there are notable differences. Burial insurance, for example, only pays for the funeral and final expenses while final expense insurance benefits are paid directly to the beneficiaries who then have the liberty to decide on their own how to spend the money.
It is not an income replacement, but rather something that will help take the burden off the shoulders of your grieving family in the event that you pass away. There are many benefits that one can take advantage of with this type of insurance coverage.
Final Expense Insurance Benefits
The average funeral in America can cost anywhere between $8,000 and $10,000, and that number continues to rise each year. So, to properly plan for a funeral, one has to have access to sufficient funds or run the risk of facing financial hardship. Final expense insurance helps with these costs.
It is also a more affordable insurance policy when compared to other insurance policy types. The value of the policy you select is up to your discretion. You can have coverage between $10,000 and $20,000, for example. This allows for lower policy premiums for larger policy coverage amounts.
There is also no requirement for a medical exam in order to qualify for this type of insurance. It has an easy qualification process. Typically, most applicants will just have to answer a series of questions.
You will also find that it is much more flexible than a pre-paid funeral plan. You are not limited to any pre-made plans and prepayments on funeral arrangements. The money will be given to the family so they can use it as they see fit.
Choosing a Policy
It is always recommended that you speak with an expert when exploring the final expense coverage options that are available to you. It is important to find the right kind of coverage and the appropriate amount of coverage that suits the needs of yourself and your family.
While it is difficult to think about our funerals now, it is always better to prepare ahead of time and be proactive when it comes to our final preparations and the expenses involved. This way your family can have the peace of mind knowing that everything is taken care of and they won't have to worry about being placed under any financial strain in the event of your passing.