What Is Final Expense Insurance?
Final expense insurance, or funeral insurance as it’s sometimes called, is an insurance policy obtained to pay for funeral expenses after the insured has passed away. Funerals and burials are expensive and oftentimes there needs to be a plan in place to pay for these costly expenses. Having money set aside will take the burden off of your loved ones once you are deceased.
Final expense insurance provides a way to consider your mortality and offer your family members peace of mind so that they can feel secure knowing they will have the funds to cover any death-related expenses. In order to put these funeral expenses into motion, you have to prepare ahead of time. Obtaining a final expense policy provides you with a monetary solution to pay for the multitude of costs that go along with a funeral and burial.
What Does Final Expense Insurance Cover?
Final expense insurance covers all of the expenses related to your funeral and burial services. This type of insurance will help to cover burial expenses, funeral costs, and other monetary expenditures related to your funeral time period. Funeral expenses can cost up to $10,000 and this is often not something many people have on hand or in the bank. And, since you can never be certain as to when your time will come, it’s important to have a payment option in place so that your loved ones won’t have to worry about the expenses while they are grieving.
Here are some of the things which your beneficiaries can use the payout for:
- Funeral service costs
- Burial costs
- Medical bills
- Credit card debt
- Other expenses incurred by the insured prior to death
Although many use the payout to pay for the funeral and burial expenses, the other items listed above are ones which often exist at the time of the insured’s death and need to be paid for when the insured is no longer able to do so.
Why Is Final Expense Insurance Important?
Final expense insurance is important for many reasons. First of all, end of life expenses are costly. Funeral services and burial expenses are not cheap. Since the deceased individual won’t be around to pay their bills, the cost must be afforded to someone. Not everyone has money in their pocket to pay cash for funerals and burials nor do they want to put these expensive charges on their credit cards. Final expense insurance allows the insured to think about the costs to be spent ahead of time and offer a way to pay for those bills.
Also, when family members are grieving the death of a loved one, they don’t want to have to think about how they will pay for the funeral and burial. This added burden will increase the heartache and make it more difficult for loved ones to go forward. By having a final expense policy in place, the insured can be certain that the bills will be paid by the policy and not put an added burden on loved ones.
Reasons to Obtain Final Expense Insurance
There are many reasons to not think twice about obtaining a final expense policy. Here are some of the reasons to not hesitate and look into getting this insurance coverage as soon as possible:
- Final expense insurance is affordable
- This type of coverage provides peace of mind for loved ones
- Funeral insurance handles the funeral, burial and related expenses
- Various forms of final expense insurance exist
- Obtaining a policy of this type is easy to do
Although our mortality is not something we want to think about too much, it is something that must be considered. When you obtain final expense insurance you don’t have to dwell on your mortality. Once you choose your final expense policy, you have it set in place. You just have to make low-cost monthly premium payments on your insurance coverage and that’s all. It’s as simple as that!
Do You Need Final Expense Insurance?
For most individuals, the answer to this question is in the affirmative. Whether you have loved ones that you’ll leave behind to deal with your expenses or not, the bills will still have to be paid. With a final expense policy in place, you don’t have to wonder who will be left to pay for your bills and expenses. It’s a way to be organized to the end and beyond. Final expense insurance is an investment which is well worth the cost, which is affordable.
What to Look for in a Final Expense Insurance Policy
Now that you know what final expense insurance is and why you should obtain this type of insurance coverage, the next step is to choose your final expense policy. When reviewing the various types of final expense policies, you should consider the following features:
- Cost of the monthly premiums
- Amount of the payout
- Term of the policy, if any
- Requirements for the insured
- Requirements for the beneficiaries
- Any restrictions on the payout
By considering these previously-mentioned factors you can narrow down the options to the final expense policy which works best for you. Carefully consider the monthly premiums as you want to be sure that you can afford a policy of this type. The premiums will need to be paid every month, or each year, in order for the policy to remain in effect. Make sure that the payments are made on time so that you don’t forfeit your final expense policy and that your policy will continue on until the payout date.
The final expense policy is an important insurance coverage option to have. Although you might not consider this type of policy as often as you would car insurance or homeowners insurance, it is equally as important when it comes to protecting those you love and ensuring that they won’t be left with your unpaid bills to deal with as they grieve your passing.