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Final expense insurance is a permanent life insurance policy that is designed to pay off costs associated with end-of-life expenses. Learn more about how a policy works and how it can give you peace of mind now and give your loved ones financial protection later on.
Final expense insurance provides a payout when you pass away that your loved ones can use to cover the cost of your funeral, pay medical bills, or pay off debts. Having this insurance takes the pressure off your loved ones so they won’t face a financial hardship covering costs related to your burial and any medical bills you may leave behind.
Funeral and burial costs have been on the rise for decades. The median cost of a funeral with viewing and burial in 2019 was $7,640. Most cemeteries require a vault, which brings the average cost to $9,135. This average excludes other common expenses such as a monument, marker, obituary or flowers.
When you choose a final expense policy that meets your needs, you will fill out an application with the life insurance company to qualify for coverage. In most cases, you will not need to take a medical exam to qualify for coverage. Then you will pay monthly or annual premiums to keep your policy in force. If your premiums are maintained, your policy stays in force until you pass away. At that time, your beneficiary will receive the death benefit.
When you purchase your policy, you will need to choose a beneficiary. This is the person who will receive the death benefit of your policy and decide how that money is distributed. Most people choose someone they trust – often a partner, spouse, child, or other family members – to finalize their estate and ensure funds are spent properly.
Getting final expense insurance is usually a straightforward process and most people will qualify for coverage. Final expense offers some unique benefits that you may not get with other types of life insurance.
Benefits of final expense insurance can include:
- An option to choose the frequency of your premium payments (monthly or annual)
- Affordable rates, and stable premiums throughout the life of your policy
- Payout beyond age 100
Final expense insurance guarantees that your loved ones are financially prepared for covering your end-of-life and funeral expenses. This takes the burden off them during an already difficult time.
If you want to learn more about your options for final expense insurance, schedule a consultation with a licensed agent to get a plan in place. Our advisors shop around to find your best-fit plan, so you can secure a policy in just a few simple steps.
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