Final Expense
Final expense insurance is a type of small whole life insurance policy. Life insurance serves as a financial cushion for the policyholder’s dependents or beneficiaries after their passing. It can be used to pay for expenses such as medical bills and funeral expenses.
End-of-life expenses and funeral expenses could be costly and may put a financial strain on one’s dependents. Due to this, final expense insurance can provide financial support for the specified beneficiaries.
What is Final Expense Insurance?
Also known as burial insurance, final expense insurance is a type of life insurance policy that pays for end-of-life expenses such as funeral arrangements, medical bills, or legal expenses that the policyholder’s beneficiary may need to settle. This policy helps to ease the financial burden associated with end-of-life expenses.
After the policyholder dies, the death benefit will be paid out and can be used to cover the expenses listed above. However, the beneficiary is not mandated to use the death benefit for these purposes. The beneficiary can choose to use the death benefit as they wish. It is also important to note that final expense death benefits are much lower than other life insurance policies. The death benefit usually ranges from $2,000 to $50,000 for a final expense policy.
The eligibility requirements for final expense insurance are also less than other life insurance policies. The insurer will ask some questions relating to your health. However, you will not need to take a medical exam or provide medical records.
After signing up, you will need to pay the premiums regularly for the rest of your life. Missing premium payments may result in the end of your policy.
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Types of Final Expense Insurance
Simplified issue life insurance and guaranteed issue life insurance are two types of final expense policies. Simplified issue final expense is meant for people who are not eligible for a traditional life insurance plan but have a moderate health risk.
Guaranteed issue plans accept most application requests but are more expensive than simplified issue plans and have lower coverage amounts.
How Much Does It Cost?
Final expense insurance premiums are relatively cheaper than most life insurance policies. Some factors can affect the cost of a final expense plan, such as age, gender, health, etc. Older enrollees will pay more for final expense coverage than younger policyholders.
Also, the costs are lower for women than men as women on average live longer than men. The policyholder’s habits may also affect the cost of the plan. For example, smokers are in a higher risk category and will pay more in premiums.
To learn more about final expense insurance, contact Senior Savings USA today at 800-409-3808.
