Final expense insurance is a term that many will come across while researching life insurance and preparing for their final expenses
While many may think it’s the same as traditional life insurance, final expense insurance is quite different, and there are quite a few things you should know about final expense insurance before opting for an insurance plan.
Final expenses continue to increase year after year
Over the course of the last 10 years, the cost of the average funeral is as much as 28% higher, with an average overall cost of around $9,000. As costs continue to grow, more families are trying to find ways to keep these coming expenses under control, and final expense insurance sets out to do just that.
What Is Final Expense Insurance Exactly
Debt following the death of a family member or loved one isn’t rare, and on average, the United States government will only pay out around $250 for final expenses through social security benefits. This small sum is hardly enough to cover even a single aspect of the funeral process, leaving family members paying thousands of dollars to cover the rest. The sole purpose of final expense insurance is to serve this need and solve this problem, covering end-of-life expenses ranging from the actual funeral to outstanding medical expenses.
Final expense insurance may sound a whole lot like basic life insurance, but there are some stark differences. A few things that make final expense insurance policies unique are:
Pays out right away
While life insurance policies can take weeks to months after the filing of a death certificate to reimburse for funeral expenses, final expense policies ensure families do not need to go into debt in the first place. The average final expense insurance policy will pay for funeral and final expenses within 24 to 48 hours of the time of death.
A whole life policy – Final expense insurance is what is considered a whole life policy, which means your coverage never decreases and your premiums do not increase as long as the policy is in good standing.
Affordability – Final expense insurance is typically more affordable than traditional life insurance policies. Because the policy is set out to pay for the funeral and associated costs, rather than the plethora of other expenses included in life insurance plans, the premiums tend to be much lower.
Simpler qualification – Final expense insurance will often not require a medical exam due to its specific end of life exclusive coverage. This allows it to be an option that is simpler to qualify for.
The Solution For The Funeral Expense Problem
As funeral expenses continue to rise year after year, families are left wondering how they are going to pay for the celebration of life their loved ones deserve. Final expense insurance is that solution, and if you’d like to learn more about what final expense insurance policies can do for you and your family, contact Living Legacy today.