Final Expense Insurance Vs Life Insurance | Which is Right for You?
Overview
If you are seeking life insurance, it is crucial to understand the difference between life insurance and final expense insurance. Life insurance is different from final expense insurance. However, both insurance types share some similarities. Let’s discuss their differences and similarities in this guide. This blog will help you to understand which insurance is right for you.
Final Expense Insurance
If you are looking for insurance that will cover you until you die, then final expense insurance is the best option for you. It is a form of life insurance. This whole life insurance covers your final costs. Whether the expenses are funeral or burial, final expense insurance got you covered.
This policy offers death benefits. With the benefits, the beneficiary can cover the insured’s other expenses such as:
- Medical bills
- Outstanding debts
- Hospice bills
- Residential care
- Mortgage
- Vacations
- Other additional expenses
The beneficiary can do anything with the benefits. There are no restrictions on spending the benefits of the insurance. Additionally, final expense insurance is the best life insurance policy for seniors. It is affordable and has an easy application process.
Final expense insurance key services
Final expense insurance or funeral insurance aims to cover your funeral expenses. It also covers your burial costs. The burial services that this insurance covers are:
- Casket
- Embalming
- Memorial services
- Flowers
- Music
- Transportation of the body
- Hearse
- Other additional services
Covering all these services without any insurance can be challenging for seniors. Burial services are expensive and they can put a financial burden on your loved ones. If you want your family to live with ease and peace, buy final expense insurance.
Monthly premiums
To buy the final expense insurance, you have to pay a fixed amount every month. Be regular with the amount or else you will not get the benefits. If you want to buy burial insurance at a low cost, purchase it while you are young. Buying insurance over 70 can cost you high.
Final Expense Coverage
Final expense is best to cover your final costs. However, the coverage amount is low. It depends on the plans. Some plans offer a higher coverage while other plans have a lower coverage. Also, the coverage amount determines the cost of the funeral insurance.
If the coverage amount is high, the insurance would be expensive. You may have to pay a higher monthly premium.
Life Insurance
Life insurance is another end-of-life insurance. It offers comprehensive coverage for your funeral and burial expenses. Like final expense insurance, life insurance also covers your medical bills and debts.
Planning for your funeral day can be overwhelming and daunting. With the growing age, seniors have to think about the expenses their final day will bring. They had to think about the financial pressure their loved ones would have to go through. Thinking about the financial burden can be concerning. However, you can provide financial security with life insurance.
Life insurance offers a sum of money to the beneficiaries. This benefit is given when the insurance policyholder dies. It gives you a maximum coverage. However, the coverage depends on the type of life insurance you purchase.
Types of life insurance
Life insurance understands that different clients have different needs. To meet these different needs, different types of life insurance are available. All these types are affordable insurance options for you. Two main types of life insurance are:
- Term life insurance
- Whole life insurance
Term life insurance
Term life insurance is not available for a longer time. After some time, this life insurance ends. The term is 10 to 30 years. But the good news is, this insurance is not expensive. Anyone can afford it.
Whole life insurance
The opposite of term life insurance is the whole life insurance. This is permanent insurance with no end date. However, it is expensive. Since it provides coverage until you die, you have to pay the premium until you die. This makes it an expensive policy.
Additional affordable insurance options
Life insurance has other affordable insurance options including:
- Universal Life Insurance
- Burial Insurance
- Joint Life Insurance
- Mortgage Life Insurance
- Credit Life Insurance
- Supplemental Insurance
Life Insurance Benefits
Life insurance provides term and permanent insurance. If you are seeking temporary insurance life insurance is the option for you. Or, if you want permanent insurance providing coverage until you die, life insurance offers that option too.
Additionally, there are many benefits like:
Financial security
The financial strength of life insurance is strong. It offers maximum coverage to policyholders. This helps your loved ones financially. It protects your family from debts, mortgages, medical bills, and other expenses. Having life insurance ensures the safety of your family.
Tax-free death benefits
Let’s accept that no one likes taxes. We all are afraid of taxes. Many insurance policies are tax deductible. However, life insurance policies are tax-free. The benefits are tax-free. Life insurance adopts tax avoidance law.
Immediate funds
Many insurance policies delay in providing the funds. Death is unexpected and people need immediate support to cover the final expenses. Arranging a big sum of money in such an overwhelming situation can be difficult. But, life insurance is there for you to offer immediate coverage. Your loved ones do not have to wait for months or years to receive the benefits.
Funeral services guaranteed
The beneficiary guaranteed gets the benefits. Once you pay the premium, the funeral services are guaranteed. You do not have to worry about the coverage. The policy terms of life insurance are strict. However, it is crucial to be regular with the premium amount.
Burial Insurance vs Life Insurance
Life insurance shares enough similarities with final expense insurance. But, there are differences too. One of the biggest differences is the coverage amount.
Life insurance offers a larger benefit. The coverage amount is higher than the final expense insurance. Final expense insurance does not offer a huge coverage amount. The beneficiary receives a small death benefit.
Furthermore, final expense insurance aims to cover medical and funeral costs. Also, it is a whole life insurance. On the other hand, life insurance is offered as universal, variable, term or whole life insurance. Check the following table for funeral insurance vs life insurance.
Life insurance | Funeral insurance |
The coverage is high. | The coverage of final expense insurance is low |
Since it offers maximum coverage, you have to pay a higher premium amount. | The cost of the final expense is not high. |
Life insurance covers most scenarios. | Final expense insurance covers funeral and medical bills. |
Cash value is present. | No cash value. |
The main purpose of life insurance is to leave an inheritance or estate planning. It can used to replace income as well. | The main purpose of funeral insurance is to cover burial and funeral costs. |
Life insurance competition
The life insurance competition is high. There are many life insurance providers in the life insurance market. However, each insurers have different features. Some have strong financial status and offer maximum coverage. On the other hand, some give an average coverage.
Some of the best life insurance companies are as follows:
- Pacific life
- Midland
- Nationwide
- Transamerica
- Lincoln Financial
- Symetra
- Pen mutual
- Corebridge Financial
- Protective
- MassMutual
Moreover, the best insurers that offer final expense insurance are:
- Mutual of Omaha
- AIG
- Gerber Life insurance
- Aetna
- Baltimore Life
- Prosperity life insurance
- Fidelity life
- Guaranteed Trust Life Insurance
- First Life America Corp
- State Farm
Final Expense Insurance vs Life Insurance Benefits
When it comes to the benefits of final expense insurance vs life insurance, both offer many. Starting with the application process, both have simple procedures. You can apply online through their websites. If you do not how to apply online, you can also hire an agent.
Hiring an agent is best for seniors because they are not familiar with the online procedures. Also, if you want cheap insurance, buy funeral insurance. The services are faster and there is no waiting period.
Nevertheless, if you want to leave an inheritance, life insurance is the best. It will protect your family and ensure financial security.
Overall, both insurances are best for you, especially if you are a senior. It gives you coverage in the most difficult times.
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We Are Here To Help With Your queries !
It depends on your needs. Typically, both life and funeral insurance are best for seniors. If you want insurance to cover your final day services choose funeral insurance. But, if you want to replace your income, buy life insurance.
Yes, people with medical conditions can also apply for life insurance. It offers many policies. Some of them accept applicants with illnesses.
Whole life insurance offers maximum death benefits. However, you may need to a higher monthly premium.