Final Expense Plans | Essential Insurance Coverage

Introduction

In life, many things are not certain. This uncertainty of life brings various fears and challenges to overcome, but it is also essential for keeping humans rooted. However, one thing is certain: death. Everyone will have to taste this one day, earlier or later, and return to meet our Creator. So, why not prepare for our deaths so that we can sign off on a positive note and leave a positive legacy on the world? Why not make it easier for ourselves and our loved ones that when our time in this world is nearing its end, we are well-prepared for the eventualities? This is why we have to take care of our funeral and burial expenses with a final expense plan. In this way, our families will not have to manage large sums of money on short notice.

Here comes the utility of final expense insurance coverage. Having a final expense plan will ease your mental burden as well as your close ones, especially about the finances of your funeral. However, many people, especially senior citizens, do not often have the basic idea of final expense plan or prepaid funeral plans. We will clarify these things for you in this article. You will learn about affordable final expense insurance plans that will provide for your funeral and burial expenses and give you financial freedom.

What is Final Expense Life Insurance?

Final expense life insurance is the whole life insurance policy that covers the medical bills and provides for burial expenses and funeral costs when a person dies. The services included in these insurance plans include a memorial service, casket, embalming, and cremation among others. For this reason, it is also known as funeral, burial, or whole-life insurance.

A final expense plan has one of the easiest approval rates and it comes with a significant death benefit. According to some estimates, a person may be eligible to get a death benefit ranging from a reasonable amount of $2000 to as much as $35000. This is not a small amount and if you are eligible for it, you can make it a lot easier for your family members to manage your burial expenses. Final expense insurance plans are more popular among senior citizens.

Features of Final Expense Life Insurance

A final expense plan will usually have a number of important features.

It is a whole-life insurance coverage and if you are regularly paying its premiums, this plan will not expire.
Such plans normally have a cash value which means insured individuals have the option to get a policy loan whenever they are in need.
Most final expense insurance plans have fixed premiums as long as you regularly pay them.
These insurance plans are usually simple and easier to secure. For instance, you are not required to take a medical exam (or life insurance exam) to be able to get approved of it. You just need to complete a form or application containing some necessary health questions.
A final expense plan has, in most cases, an easy application process.
Final expense insurance plans have fast approval rates. Sometimes, it just takes a few days and you are approved as a final expense-insured individual.
Final expense plans generally have affordable rates.

A final expense life insurance plan is a good option for everyone, particularly senior citizens, because of its ease of access, affordability, and general benefits. Its most important benefit, however, is that in the unfortunate events of your death, your family members will not have to worry about your funeral expenses. This financial relief in times of sorrow can be a great help. This is why a final expense life insurance is essential for people, especially seniors.

Final Expense Life Insurance For Seniors

Final expense life insurance is especially designed for people whose age is higher. For instance, people over 60 years are considered senior citizens who are in greater need of life insurance plans than younger individuals. Even people above 50 years of age need final expense insurance more than their younger counterparts. This is why such insurance plans are more popular among the senior lot. Moreover, a final expense plan is generally affordable, has a smaller benefits amount, and has an emphasis on burial or funeral costs.

Final Vs. Traditional Life Insurance

Final expense insurance plans may be compared with traditional life insurance policies like term insurance. Such type of insurance is intended to replace the income lost in the event of the death of a loved one. These policies are important for families in the initial years of insurance. Because we are doing a job, regularly paying our mortgages and car payments, and raising children. In the post-retirement era, when mortgages are paid and children are grown-ups, traditional life insurance policies are not needed as much.

At this stage, what most people need to do is to find a way to pay for any expenses they have to make when they pass away. As per the report of the National Funeral Directors Association, the median costs of burial and cremation may be more than $9000. This is a hefty amount which can potentially become a burden for the loved ones and they even may not be able to manage it immediately. Moreover, it is a financial burden on the family during times of sorrow. This is why final expense insurance plans are a good way to manage such unfortunate but inevitable situations in life.

Final Expense Insurance Brings Financial Relief

With a final expense plan, your loved ones will not feel financially burdened during these difficult moments. These insurance plans cover all funeral costs that involve the arrangements of embalming, casket, and cremations. Furthermore, the total amount received under insurance may help clear any outstanding loans or bills the deceased owed.

It means that final expense insurance plans are really good options for senior citizens. They can provide financial relief to the family of the deceased. They are also generally affordable and easily manageable. Therefore, seniors should get a final expense life insurance plan and make their life and death easier.

Why Do You Need A Final Expense Insurance Plan?

Because of their obvious benefits, people choose and opt for final expense insurance plans. These plans have become popular because medical expenses and funeral costs are rising with each passing day. Inflation is also on the rise, and there might be several outstanding bills when an individual dies.

Things to Consider

In case you need a final expense insurance plan, you’ll have to consider two things: first, what bills are pending and how much you have to pay. Second, whether you have availed of any other life insurance plan. In case you have some life insurance plan, your insurance might be sufficient enough to manage your funeral costs and outstanding credit card balance. For both situations, it is better to have a life insurance plan.

In addition, for senior citizens who do not have any active life insurance, a final expense plan can be particularly helpful. It will take off any financial burden the loved ones may experience in the absence of insurance coverage.

No Medical Exam

Importantly, final expense insurance plans do not generally require a medical exam. This is why you can attain insurance coverage whether or not you experience any health condition. Your family members can acquire the cash in the event of your death, or a tragic moment, and manage your end-of-life arrangement.

How Much Does Final Expense Insurance Cost?

Gender and Age

Depending on your gender and age, the cost of your Final Expense Insurance varies. It might sound odd but gender also influences the cost. Given the tendency of men to get into accidents and suffer injuries, men usually pay more premiums for their Final Expense Insurance Cost. Men also have shorter life expectancy, but that does not save them from paying more.

As one ages, one has a higher probability of getting sick, being disabled, or dying. In that sense, women tend to pay more since they have longer life expectancy and suffer more from health issues. However, the general trends reflect that men are more likely to pay a higher premium on life insurance.

Health and Coverage Options

Besides gender and age, you would be required to choose what your insurance cost covers. The cost varies depending on the coverage of your insurance. Insurers often ask questions about your health and medical conditions to assess your life expectancy and quality of life. It is not common for an insurance company to ask for a medical exam but they do make you fill out a health questionnaire. This helps them set the premium on your insurance. It is generally presumed that a sicker person is more likely to die and have higher medical charges. Thus, the Final Expense Insurance cost is not the same for everyone, it changes according to your age, gender, health, and coverage.

Assess All Options Before Availing Final Expense Insurance

Before you settle for an insurance company, it is always advisable to take information from multiple insurers. When you get quotes from a few insurers, you are able to assess the cost and benefits offered by each. This is the best way to get an idea about the actual cost of insurance.

Some insurance companies may also have quotes available on their official websites and web pages. The average premium for final expense insurance is not fixed. It could be anything from $30-$70 depending on the external factors discussed above. This general estimation of dollar 30 to dollar 70 per month is given by an insurance company named Lincoln Heritage Funeral Advantage.

As insurance costs rise with age, the average cost of Final Expense insurance for elderly people may be as high as 120 dollars per month. People who are older than 70 years have to bear an average insurance cost of $70 to $120 per month. The reason for this higher cost in older people is due to their pre-existing health conditions. Given the advancement in medical science and technology, humans might come up with ways to reduce diseases and disability. However, it does not seem likely that they will be able to defeat death.

Price of Whole Life Insurance

The price of whole life insurance policies and insurance policies are likely to soar as you grow in age and suffer from sickness and diseases. These life insurance policies already have higher payout prices and are likely to get only more expensive with age. The case in point is that of a 10-year term life policy with $125,000 in coverage for a 60-year-old person who has a healthy lifestyle and does not smoke. Even for this 60-year-old, the average cost of insurance is approximately $175 per month for a male and $140 per month for a female.

For a person with an age higher than 60, let us say 70, monthly premiums inflate about $403 for a male and $345 for a female. This is to reiterate that to find the best life insurance plan, it is better to compare policy costs from various sources. Assessing their coverage amounts and premiums will help you choose the best option for yourself. It is never a waste of money and energy to invest timely in matters of life and death. It is an avoidable reality and humans can only try to prepare for it in the best possible manner.

Conclusion

In this guide, we have explained what is final expense coverage and insurance, what are its costs, and why people, especially senior citizens, need them. From the above discussion, it is clear that a final expense plan is essential in today’s world. Most people, particularly seniors, should avail of these plans because of a number of its benefits. With each passing day, the costs of funeral services are rising and there has been a general increase in inflation.

Importantly, in the event of an individual’s death, nearly $10,000 is required. This amount of money is difficult to arrange at short notice. However, if a person has life insurance coverage, it can be a huge financial relief for the family members and loved ones. It is also important because arranging for these finances can be difficult in the moment of grief and sorrow.

In short, it is a good idea to have a final expense plan and life insurance for seniors so that the burial and funeral costs can be easily and smoothly managed. A final expense insurance plan will not only make a person’s life easier but also their death.