Death is an undeniable truth, and it is also a fact that the cost of dying is usually expensive which becomes an additional burden on the demised family. As per the National Funeral Directors Association (NFDA), families have to bear an average cost of more than $7,000 to arrange a funeral. Apart from this, this does not include the price of the dome, ground digging, and headstone, and these things can cost extra thousands of dollars.
Some people opt to avoid the funeral costs by choosing a cremation, it might also not be much economical. According to National Funeral Directors Association (NFDA), the funeral cost with cremation can also cost more than $5,000.
As the huge bills of a person’s final expenses are inescapable, the majority of the people opt for a life insurance policy. Like some people choose for more strong life insurance policies that offer considerable death benefits, final expense insurance can be best for someone who only requires coverage for their final expenses.
Final Expense Insurance is designed exclusively to provide financial coverage for your final disposition, funeral, and burial expenses. Final Expense Insurance or burial insurance is usually less than the amount of standard life insurance policies.
The perks about the final expense life insurance policy are:
- No requirement of a medical exam, so no health condition prerequisites
- As the total coverage amount ranges from $5,000 to $35,000, monthly premium amounts can be highly economical
- Anyone can purchase a Final Expense Insurance Policy till the age of 80 years. So, it is ideal for senior citizens who may not qualify for other insurance policies.
- Applicants can choose either to pay premiums monthly or yearly
- Your beneficiaries will receive a handsome cash amount to use either to pay for your final expenses or can use it for any other purpose
- Final Expense Insurance policy can earn dividends
- Policyholders need to pay a fixed amount of premiums throughout the term length of the policy
The final expense insurance is affordable and has lenient prerequisites. It is a highly recommended option for older citizens to acquire financial protection and peace of mind for their families. So, the best way to acquire the best final expense insurance policy is to shop around, compare options and choose the best for yourself.
Sometimes waiting periods apply to burial insurance policies. In this case, your coverage will not be granted unless you pay premiums for a certain period that can be as long as two years. So, the best approach to adopt when choosing a final expense insurance policy is to inquire about waiting periods and choose the one that best fits your requirements.
Final Expense Insurance Cost
An average final expense insurance policy starts from around $20 per month, and the rates vary depending on the policyholder’s age and death benefits. So, if you want to enjoy the greatest benefit for the final expense insurance policy, you must look for a reputable insurance corporation that offers the most economical monthly and yearly premium payments.
As the final expense insurance policy is designed exclusively for senior citizens who are not eligible for other types of life insurance coverages, it can be the best financial protection for anyone. For instance, a 30 years old person with excellent health can purchase a final expense insurance policy worth $10,000 for just a $20 monthly premium payment.
Yet, if the applicant can pass out the health exam, they must also consider looking for a traditional life insurance policy and try to compare the costs of the final expense insurance options. The similarity between a life insurance policy and final expense insurance is that both provide the option to leave money for the heirs.
Similar to other life insurance types, final expense insurance also provides death benefits (in form of lump-sum amount) to the policyholder’s beneficiaries. So, the beneficiaries can make use of the amount they want.
By default, final expense insurance is intended to cover your funeral, burial, cremation, and end-life living costs. A few people also use the final expense insurance coverage to pay for extra expenditures such as flowers, obituaries, medical bills, or credit card payments.
It is also possible to allocate a final expense life insurance policy directly to the funeral home. Also, the heirs can make cash payments for the chosen services and get a reimbursement from the insurance corporation. If the policyholder’s family wants to pay directly to the funeral home, an official bill is required which is the right of the service user as per the Federal Trade Commission’s Funeral Rule.
As the final expense coverage is usually pricier, so it is sensible to look for more economical term life insurance policies if you apply at the right age with no health complications. If you do not qualify for the term life insurance policy and are worried about providing financial protection to your family after your death, then final expense insurance can be the best choice. And if you can acquire the policy without a waiting period, it can be the best thing ever.
You must understand that final expense insurance is not suited for everyone, but it is recommended for the senior citizens who want their final expenses to be covered or want some financial protection for their family. This will save your loved ones from unnecessary struggles for the burial expenses while they are upset at the loss of their family member.