Talking about final expense insurance can be a difficult topic for many people, but it could be one of the most important topics you can discuss with your loved ones. After all, death is inevitable for all of us, and without preparation, your loved ones can be expected to pay the bill.
There are two primary types of insurance that beneficiaries receive after the loss of a loved one. The first, final expense insurance, is a minimal life insurance coverage option designed to provide smaller death benefits.
These benefits can be used toward a variety of costs, like:
- Funeral services
- Burial services
- Cremation services
- Medical expenses
Like life insurance policies, you can choose a beneficiary (or multiple beneficiaries) who will receive the death benefit after you pass. This person (or people) are responsible for using the money how you see fit.
Alternatively, you can choose to invest in a life insurance policy. Life insurance policies are similar to final expense insurance policies in that payouts are provided to beneficiaries after you have passed away. However, traditional life insurance policies are far more comprehensive and serve as a form of financial support for your loved ones instead of solely being used towards burial and funeral costs.
Most policy holders purchase their life insurance policies at an early age. It is common for employers to offer it as part of an employee benefits package. However, some seniors may choose to invest in coverage much later in life. These policies traditionally protect families from struggling financially in the event of a person’s death.
However, life insurance policies can have higher premium costs and more stringent requirements, so they may not be as accessible for some. It may be easier to qualify for traditional life insurance when you are younger, as insurers might deny coverage for current health conditions or a person’s medical history.
This is one reason why final expense insurance is more common for seniors who have not already invested in life insurance policies when they were younger. In fact, most people who are looking to buy final expense insurance policies are in their 80s.
While these policies may not provide the same financial safety net to loved ones as life insurance, that safety net may not be as necessary at that stage in a person’s life. Still, funeral expense insurance could save loved ones thousands of dollars and helps ensure that all of your final expenses will be taken care of.
Are you wondering if you might qualify for final expense life insurance? You may be interested to learn the common requirements you’ll need to meet to purchase a policy. Continue on to the next slide to learn more.