2024 Guide To Final Expense Insurance | lifeasehealth

Life is full of unexpected events and we do not know what will happen next. You must prepare yourself for these unexpected events. Financial protection like life insurance is an essential tool to protect your family from challenging times. This insurance is a whole life insurance that helps to cover all expenses. The guide will discuss the final expense insurance, its affordable services, and benefits.

What Is Final Expense?

The final expense is the expenses that your family experiences after you die. It includes all the costs of burial arrangements and medical bills.

We cannot underestimate the costs of burial expenses. Funeral proceedings are expensive. Most people cannot afford all the expenses of the arrangements. In such cases, they go for final expense insurance.

This insurance policies cover funeral costs for people. It offers affordable services that can remove the financial burden from your shoulders.

Final Expense Insurance

Final expense insurance is also known as burial insurance or funeral insurance. It is like a life insurance policy. The insurance covers funeral expenses like cremation, headstones, legal matters, and other funeral arrangements. It also covers nursing home expenses.

This life insurance policy is for older adults. It provides a payout and helps your family during the challenging times. A final expense insurance policy provides financial aid after you pass. When you have this life insurance, your death does not lead to a financial burden on your loved ones.

With this insurance, a person gets a way to leave with some money for his family. In addition, the insurance is easy to obtain and any adult can get it. You do not have to go through a health assessment to qualify for this insurance policy.

Types Of Final Expense Insurance

Final expense insurance has two types: simplified and guaranteed issues. Each type is different because of the coverage plan.

Simplified issue

In a simplified issue, you have to fill out a medical questionnaire. People who need life insurance urgently can go for simplified issue life insurance. In addition, people who do not want to go through health assessment can get this life insurance.

Guaranteed issue

Guaranteed issue is more convenient than simplified. Simplified life insurance may not be easier to get. However, the guaranteed issue is easy to obtain. An individual can get this life insurance even if he has a serious health problem.

Moreover, there is no need to fill out a medical questionnaire. There is no medical assessment in this life insurance as well. Also, it is much easier and less time-consuming than the simplified issue.

Options In Final Expense Insurance

Final expense Insurance has various policies to choose from. These options include term life insurance, whole life insurance and guaranteed universal life insurance.

Term life

This is the cheapest life insurance. It offers you coverage for a few years. The reason why it is cheap is that it is temporary.

Whole life

This life insurance offers permanent coverage. It includes death benefits that cover your burial arrangement costs. There is an investment option in whole life insurance. However, this life insurance is an expensive form of coverage.

Guaranteed universal life

This life insurance is a hybrid of whole and term life insurance. You have the option to choose a certain age in this life insurance.

Life Insurance Vs Final Expense Insurance

It may look like that final expense insurance is different from life insurance. However, there is no such big difference. One big difference is that insurers sell smaller policies in insurance. This makes it more affordable.

Moreover, the final insurance policy does not take time and any older adult can get it. In life insurance, an individual has to go through a health assessment. But, in this insurance health assessment is not required.

Why Sell Final Expense Insurance?

As discussed above, many insurers sell funeral insurance to clients. There are many reasons why they should sell this insurance to their clients. Some crucial reasons are:
- It is less expensive
- It offers affordable services
- It covers medical bills
- Clients are more satisfied knowing that their family is not bothered about the burial expenses
- It can be an additional revenue stream

How Does Final Expense Insurance Policy Work?

Final expense insurance is a whole life insurance. It means that it provides lifelong and permanent coverage. However, you must pay the premiums to obtain the benefits of this insurance policy.

When it comes to other health insurance, they are term life insurance. This means that you cannot obtain benefits for lifelong. There is a specified coverage period and only during this period, you can get benefits.

Criteria For Final Expense Insurance

Any older adults, between 45 to 80 years old, can get final expense insurance policies. But the criteria varies company to company. The adult then chooses a policy beneficiary who will receive the death benefits.

When a policy’s beneficiary gets the insurance, he receives death benefits. The coverage can range from a few thousand to $45,000 or more. This amount is tax-free.

Services Provided By Final Expense Insurance

Final expense insurance not only offers burial benefits but also provides other benefits as well. Some crucial services are:

Crematory
Headstone
Nursing home expenses
Residential care
Medical bills
Cover funeral costs up to $50,000
Legal bills
Funeral gatherings
Flowers, music and other burial arrangements

Can We Apply Online For Burial Insurance?

Usually, you get final expense insurance policies through the agents. Clients buy the policies and they are for lifelong. But, an individual can also apply online for this insurance. You can get this insurance policy and its services through an online application.

Start to fill out an online application that takes a few minutes. It is an easy process and less time-consuming. Once you buy final expense insurance, you mention people as the recipients of the policy.

Who Should Apply For Final Expense Insurance?

Funeral arrangements can be stressful. In addition, you cannot underrate the costs of the burial ceremony. Most people do not wish that their death would lead to a financial burden on their family. They want to make sure that their family does not spend money on their funeral costs.

If you do not have the resources to pay for your funeral expenses, then you should apply for this life insurance. However, if you have resources or any life insurance then you do not need to apply for this life insurance.

Older people are eligible for final expense insurance. Furthermore, people who do not have any retirement funds should get this insurance.

Is Burial Insurance Worth It?

Burial insurance is one of the valuable purchases as it helps you to cover funeral expenses. If you are not financially strong, you should buy this insurance.

It is beneficial to buy this life insurance because it gives death benefits to the family as well. During hectic and challenging times, your family get benefits through this life insurance. Buying this life insurance is worthwhile as it covers all your funeral arrangements.

Additionally, final expense insurance also covers medical and legal bills. It becomes easy for your loved one to pay for the funeral expenses. They do not have to go into debt paying for all the burial arrangements.

Reasons To Buy Final Expense Life Insurance

There are many reasons to buy final expense life insurance. Some of the main reasons are:

Cover funeral costs

As stated earlier, final expense life insurance covers all the funeral expenses. It provides affordable services at funerals like music, headstones, flowers and funeral gatherings. This life insurance provides death benefits to your family. It leaves some money for your family.

Covers medical bills

Final expense life insurance covers your medical bills. If you have any nursing home expenses, this insurance also covers them.

Financial support

Your loved ones receive some financial support because of the death benefits. Death benefits also help your family in addition to offering funeral costs.

Easy to apply

Another reason to buy final expense life insurance is that it is easy to apply. There are policies and you have to choose one policy that suits best for you. According to your needs, you can choose your policy and get whole life insurance.

Peace of mind

Knowing that you have arranged your funeral expenses gives you peace of mind. You do not leave a financial issue behind for your family. You take responsibility for your funeral costs. Through this life insurance, you also leave a gift behind for your loved ones in the form of death benefits.

Pros And Cons Of Burial Insurance?

There is no doubt that there are many benefits that final expense insurance offers. However, there are some cons as well. Some pros and cons are:

Pros

Affordable premiums
The smaller death benefits make it more affordable
Final expense insurance helps your family as it provides money even after paying the funeral expenses
The beneficiary has the right to decide what to do with the death benefit
You do not need to go through a medical exam
The death benefits are tax-free

Cons

Premiums can be more expensive than the death benefits
It offers a smaller benefit amount
Providing misleading information to lure the clients
Final expense insurance is expensive while other life insurance is cheaper

Conclusion

Overall, this insurance is a beneficial life insurance that covers funeral costs. It also covers the medical and legal bills, making it less chaotic for your loved ones. You should make this life insurance a part of your financial plan. Take responsibility for your funeral expenses and control the financial planning through final expense life insurance. Additionally, consider exploring Medicare Advantage plans to cover your broader healthcare needs, ensuring comprehensive financial protection for you and your loved ones.