Unique Features of Final Expense Life Insurance
A loved one’s passing is usually the most difficult experience we can ever have. But besides the emotional stress, we also have to take care of end-of-life medical costs and funeral expenses. Such a combination can be very draining, both mentally and physically, to the surviving family. This is where final expense life insurance can make a huge difference.
But considering the entire range of life insurance products that all seem to provide the same benefits, what are the unique features offered by final expense insurance?
Life Preparedness as the Focus
Typical life insurance policies usually don’t have specific coverage for funeral preparation costs. Caskets alone can cost as high as $10,000 or even more, depending on style and aesthetics. This does not include flowers, transportation, preparation of the body, headstone and many more. With a final expense policy, the family does not have to worry about paying for these essentials, and can instead simply deal with their grief.
A Whole Life Policy
In regular whole life insurance, the death benefit and insurance premium are typically the same at any stage of the policy’s life. Such policies typically last the entire life of the policyholder and may also increase in cash value. Whole life insurance is sometimes referred to as permanent life because it has no timeframe limits as opposed to term insurance.
A More Economical Option
As it is meant for funeral costs, a final expense policy’s coverage amount is often less than than that of a typical policy. People usually spend some $10,000 to $20,000 to insure themselves, so final expense insurance premiums are notably more affordable compared to bigger policies.
Quick, Hassle-Free Qualification
Given that the coverage amount is less than that of other insurance types, some final expense policies require no medical tests and are instead based on an applicant’s answers to questions on their form.
So who can benefit from final expense insurance? First and foremost, it never expires (premiums need to be paid, of course) and it holds a cash value over time. With its death benefit only amounting to $5,000 to $25,000, which is way less than traditional insurance, it is generally more affordable. This makes final expense policies attractive to seniors who want their families spared from the burden of paying for their end-of-life expenses.
On the other hand, final expense insurance isn’t only good for seniors. Anybody who wishes not to leave the world with their families unprepared should take out a life insurance policy. By asking different providers for quotes, including a final expense quote, it will be easier to decide which type of coverage is best.