Benefits of Final Expense Insurance
Death is an inevitable part of life, yet the costs associated with it can sometimes catch a person — or their family — off guard. From funeral expenses to outstanding debts, the financial burden that comes with the passing of a loved one can be overwhelming. In this article, we’ll delve into the reasons why dying can be expensive and explore how Final Expense coverage can provide a practical solution to ease the financial strain during such challenging times.
Understanding the Costs of Dying
The costs that are associated with a person’s death fall into a handful of categories. Knowing these potential expenses can help you and your family stay ahead of stress and worry. You can also take measures to alleviate some of the financial burden — we’ll show you how!
Funeral Expenses.
Funerals are more than just a way to say goodbye; they’re an important cultural, community and emotional event. However, the costs associated with funerals can add up quickly. Traditional funerals typically involve expenses like embalming, caskets, memorial services, burial plots and headstones. According to the National Funeral Directors Association, the median cost of a funeral with viewing and burial was around $8,300 in 2023
Medical Bills.
Serious illnesses often come with significant medical bills. Even with health insurance, there can be out-of-pocket expenses, deductibles and co-pays that the family is responsible for. Additionally, end-of-life medical care, hospice and long-term care costs can accumulate, impacting the family’s financial stability.
Outstanding Debts.
When someone passes away, their outstanding debts do not disappear. Mortgages, credit card debt, personal loans and other financial obligations can become the responsibility of the deceased’s family. If these debts are left unpaid, they can negatively affect the family’s credit and overall financial situation.
Estate Taxes and Legal Fees.
Distributing a person’s assets after their passing involves legal processes and potential estate taxes. Legal fees and administrative costs can significantly reduce the amount of inheritance left for the family.
The Benefits of Final Expense Coverage
To mitigate the financial burden associated with these costs, many individuals opt for Final Expense coverage. This type of life insurance is designed to cover the expenses related to a person’s passing, ensuring that their loved ones are not left struggling financially during an already difficult time. Here are some key benefits of Final Expense coverage:
Monthly Premiums.
Final Expense coverage typically comes with lower premiums compared to other types of life insurance. This makes it an accessible option for individuals who want to secure financial support for their families without breaking the bank.
Coverage Tailored to Funeral Costs.
Unlike traditional life insurance, which may have more extensive coverage, Final Expense coverage is specifically designed to cover funeral and burial expenses. This targeted coverage ensures that the funds are allocated where they’re needed most.
No Medical Exam Option.
Many Final Expense coverage policies offer a no-medical-exam option, making it easier for older individuals or those with pre-existing health conditions to qualify for coverage. This accessibility can provide peace of mind to those concerned about their loved ones’ financial future.
Quick Payouts.
Final Expense coverage policies often provide quick payouts to beneficiaries. This rapid access to funds allows families to cover immediate expenses without delay, reducing financial stress during an already emotional time.
Flexibility in Beneficiary Use.
Unlike some traditional life insurance policies that dictate how the funds must be used, Final Expense coverage provides beneficiaries with more flexibility in how they use the money. Whether it’s covering funeral costs, medical bills, outstanding debts or other financial needs, the funds can be used as deemed necessary. This is also why it’s important to choose a beneficiary of your Final Expense policy whom you trust!
No Expiration of Policy.
Final Expense coverage policies do not expire as long as the premiums are paid, providing ongoing coverage and peace of mind. This ensures that beneficiaries will receive the financial support they need when the time comes.
Conclusion
The costs associated with dying can place an unexpected financial burden on families during an already emotionally challenging time. Final Expense coverage offers a practical solution to address these costs and provide much-needed financial support to loved ones.
By alleviating the financial strain, Final Expense coverage allows families to focus on healing and coming together to remember and celebrate the life of their departed family member. Planning for the inevitable is an act of love, and Final Expense coverage ensures that your legacy of care and consideration continues even after you’re gone.
Want to know more? Reach out to one of our licensed agents to find a Final Expense policy that might be just the peace of mind you are looking for.
Final expense life insurance can be used by the beneficiary designated as needed rather than being limited to specific funeral services and providers. Final expense life policies will have a lower face value than most traditional term or whole life policies as they are intended for a specific purpose of covering those final costs rather than providing comprehensive support for surviving family members. This type of policy generally doesn’t require a medical exam, but premiums will be higher the older you are, and some benefit payouts may be limited during the first few years of coverage for those with significant health issues. Reducing or skipping premium payments will impact the amount of interest paid and may impact how long the policy lasts. Accessing the cash value of a policy will reduce the available cash surrender value and the death benefit. Policy guarantees are based upon the claims-paying ability of the issuing life insurance company.
