What is Final Expense Insurance?
As much as we’d like to think otherwise, our lives are finite endeavors. Death is a reality and must be prepared for, even if the confrontation of preparations makes us uncomfortable. Final expense insurance is the name given to policies that include some manner of coverage for burial, funeral and bereavement costs. It differs from life insurance in many key ways, most notably in the relative low cost and lack of pre-screening for health conditions. While many life insurance policies include some coverage for final expenses, a dedicated final expense policy gives added protection and ensures that your loved ones are protected from having to pay costs out-of-pocket.
Choosing a plan
When looking into a final expense insurance policy, there are many things to consider. First of all, like life insurance policies, final expense policies can be issued for the life of the individual or on a termed basis. Term policies can be helpful in situations where the death is expected, as in the case of a terminal illness. If a term policy is chosen and the policyholder is still alive at the end of the term, however, the policy expires and no benefits are received. Whole life policies, while they do not expire, may only be obtained up to a certain age, so it is important to do your research and determine which type of policy you need and when you must purchase it. …show more content…
Immediate burial plans are often the least expensive, as they do not involve a funeral home or viewing. Full service plans include such things as a viewing, a ceremony, and either entombment or cremation of the body. Often they can include the cost of preparation of the body, as well as limousines and flowers for the funeral home. Depending on the company and the policy, even expenses like unpaid medical bills and legal fees may be
As much as we’d like to think otherwise, our lives are finite endeavors. Death is a reality and must be prepared for, even if the confrontation of preparations makes us uncomfortable. Final expense insurance is the name given to policies that include some manner of coverage for burial, funeral and bereavement costs. It differs from life insurance in many key ways, most notably in the relative low cost and lack of pre-screening for health conditions. While many life insurance policies include some coverage for final expenses, a dedicated final expense policy gives added protection and ensures that your loved ones are protected from having to pay costs out-of-pocket.
Choosing a plan
When looking into a final expense insurance policy, there are many things to consider. First of all, like life insurance policies, final expense policies can be issued for the life of the individual or on a termed basis. Term policies can be helpful in situations where the death is expected, as in the case of a terminal illness. If a term policy is chosen and the policyholder is still alive at the end of the term, however, the policy expires and no benefits are received. Whole life policies, while they do not expire, may only be obtained up to a certain age, so it is important to do your research and determine which type of policy you need and when you must purchase it. …show more content…
Immediate burial plans are often the least expensive, as they do not involve a funeral home or viewing. Full service plans include such things as a viewing, a ceremony, and either entombment or cremation of the body. Often they can include the cost of preparation of the body, as well as limousines and flowers for the funeral home. Depending on the company and the policy, even expenses like unpaid medical bills and legal fees may be