Final expense life insurance is the perfect insurance for you if you are over 40 and need money to cover your final and funeral expenses. The hardest thing we will ever confront with is the death of someone we love. Other than that, families and friends often deal with any medical expenses and burial service costs. These finances can add further grief and stress to surviving friends and family members.
Moreover, final expense life insurance was established to avoid this added pressure. Final expense policy in other terms are funeral insurance, burial insurance, or end-of-life insurance. This policy provides your loved ones a specific amount upon your death. Further, they can use that money to cover any expenses you leave behind. For instance, medical expenses and memorial service costs.
4 Reasons Why Final Expense Life Insurance Is Unique
Furthermore, this type of policy is not like any other insurance policy. It has its own rules and focus.
Focuses On Preparing You For After-Life
Majority of life insurance polices are note intended to explicitly address the numerous expenses your family and relatives will pay for a funeral. For instance, coffins alone can cost you up to $10,000, contingent upon the material and style. This does exclude other common funeral expenses like transportation, grave liners, preparation of the body, flowers, or even the gravestone. A final expense insurance policy can help with these expenses. Also, it protects your family from encountering financial problems.
Final expense insurance is a sort of whole life policy
For most established whole life insurance policies, the death benefit and the insurance premium stays the same for the entire duration of the policy. Generally, whole life policies exist with the policyholder’s life and accumulate cash value. Oftentimes, whole life insurance is referred as “permanent life” in light of the fact that the term of the policy is not constrained to a particular time period like term insurance policies.
It’s More Economic Than Most Insurance Policies
Since it is commonly used to cover memorial service costs, the insurance amount is usually considerably smaller than conventional policies. By and large, individuals guarantee themselves for $10,000 – $20,000, making the premiums for a final expense policy more reasonably priced than bigger policies.
Moreover, the coverage amount is lower than other sorts of life insurance policies. In fact, some final expense policies do not demand a medical exam to become eligible. Most insurance policies can be issued in light of answers to health inquiries on the life insurance application.
Increasing Funeral Costs and Medical Expenses
The increasing expenses of funerals have been very much archived throughout the years:
- The average cost of a funeral excluding a vault was just over $700 in 1960
- That amount had ascended to $2,737 in 1985
- In 2014, that amount rose even higher to $8,508
These numbers insinuate an expansion of 1,328 percent in funeral service costs more than four decades. Further, include the cost of a graveyard marker, a published death notice, and all other expenses related with a funeral service. The grand total can rapidly approach $10,000 or higher.
Notwithstanding funeral service expenses, medical costs alone can cost surviving family and relatives hundreds and thousands of dollars. Actually, more than 80% of the 2.6 million individuals who passed in the U.S. in 2014 were on Medicare before their death.
Of the 2.6 million individuals who kicked the bucket in the U.S. in 2014, more than 80% were on Medicare before they passed. An unbalanced share of Medicare spending happens in the latest years of life. Such as, taking care of costs identified with persistent medical conditions, hospice care and inpatient hospitalizations.
A Wise And Charitable Insurance For Seniors
So, by what method can final expense life insurance help seniors?
Just like conventional life insurance policies, term insurance essentially expects to supplant your lost income when you pass. These insurance policies are most essential amid the years when they were employed, raising families and paying for homes.
Once you retire, fully pay mortgage, and the children are out of the house, conventional life coverage policies will not require to such an extent. What you really need is an approach to pay for any costs you abandon when you pass.
Remember, the normal burial service can make you spend over $9,000. With no other means to pay for those costs, families frequently encounter financial problems amid a period of extreme sorrow.
Most of us have encountered the death of friend or family member and recollect how distressing it was to juggle our misery, planning the memorial, and dealing with the financial obligations. Thus, the idea of our partner or children experiencing that is just difficult to bear with.
Then, how will you be able to protect your family from this financial trouble? Is there a way to ensure you will not leave your family with a heap of account statements when you pass?
Considering a final expense life insurance can be a shrewd solution for seniors hoping to protect their family from rising burial service costs. It is usually easy to meet all requirements. You will receive the policy in view of your answers to health questions. In fact, you don’t have to take a medical exam in most cases.
Is Final Expense Life Insurance For You?
Moreover, final expense insurance is permanent insurance. Therefore, it doesn’t expire as long as you pay your premiums. In addition, it accumulates a cash value after some time. Since, the death benefit of the policy (usually $5,000-$25,000) has a tendency to be not as much as the benefit of traditional insurance, premiums become less expensive. This makes final expense insurance an alluring alternative for seniors hoping to cover their end-of-life finances.
Meanwhile, this inexpensive whole life insurance is not only designed for seniors. Anyone who worries on leaving their loved ones ill-equipped when they pass ought to consider buying life insurance policies for themselves. Seek help from Inzur agents. They can provide multiple affordable life insurance quotes to help you determine which type of life insurance is best for you.
Final expense life insurance gives you and your family peace of mind. This insurance policy can pay for your unpaid credit cards, funeral cremation, home or car loans. In addition, this ticks off boxes on your funeral checklist. Lastly, final expenses will no longer be an addition to your family’s grief.