When you’re young, you may get life insurance coverage to protect your mortgage payments, to provide financial stability for a certain stage of life or to safeguard your ability to earn an income. But when you reach an age when you no longer have dependents or believe you would leave behind a significant financial burden, you can still plan ahead to prevent your loved ones from having to pay your funeral or burial expenses.
Final expense insurance can help you protect against costly funeral expenses and give you peace of mind knowing that your family would have funds to cover your end-of-life expenses.
Keep reading to learn more about final expense insurance and to find out if this insurance solution is right for you.
What is final expense insurance?
Final expense insurance is a whole life insurance policy designed to cover end-of-life expenses. Your end-of-life expenses could include the cost of your funeral or burial, as well as any recurring or future expenses that your family might face after your passing.
This type of life insurance is generally recommended for those ages 50-80 but is also suitable for middle-aged individuals who are planning for their retirement or preparing their estate. Like other types of life insurance, final expense premiums are based on the age and health of the insured.
However, final expense insurance is generally considered affordable – plans can cost just $20/month.
Pros of final expense insurance
Final expense insurance (a whole life insurance policy) is a type of permanent life insurance. Permanent life insurance policies do not expire, meaning that your family is guaranteed a death benefit. Death benefits for final expense insurance plans can even be paid out after age 100.
Final expense insurance is generally affordable, and it can be even more affordable to start your plan sooner rather than later. If you are in your late 50’s and in excellent health, you will pay around $20/month. However, if you are over 65 and have a medical condition, your premium rate might be more expensive.
Most insurance companies that offer final expense insurance do not require a medical exam in order to qualify for coverage. Quility partners with 80+ trusted insurance companies to ensure that you get the best-fit plan. Our licensed agents can shop on your behalf to help you find a final expense policy with low premiums and no medical exams – all while still satisfying your financial goals.
Final expense premiums remain the same throughout your policy. This means that you pay the same amount of money each month or year to keep your policy active. If you maintain your payments, your beneficiary will receive a lump sum death benefit when you die.
The greatest benefit that comes with a final expense insurance policy is knowing that you have planned ahead for your family’s peace of mind. Last year, the median price for full funeral and burial was over $9,000. Final expense insurance ensures that your loved ones are prepared to cover the cost of your funeral or burial, and they’ll never have to worry about how they’ll pay for it.
Cons of final expense insurance
Final expense insurance is just like it sounds – life insurance designed to cover your final expenses. With that comes a smaller death benefit (usually between $5,000-$25,000) compared to whole life insurance policies.
If you are looking for a life insurance policy to cover just your final arrangements, then final expense insurance is right for you. However, if your beneficiaries would require additional financial support after you die, you may consider a different life insurance policy that better suits your family’s needs.
Even though your final expense insurance policy is designed to cover your final expenses, your beneficiary is not required to do so. However, some funeral homes can be named your primary beneficiary if you prefer to send the money directly to your chosen funeral home as opposed to a loved one. We understand that it can be difficult to plan for your funeral but having preparations in place can make all the difference for your family and ensure that your wishes are carried out as you intended.
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