Final Expense

A final expense life insurance policy isn’t the same as what’s known as “insuring your life.”

Insuring your life concerns leaving your family and loved ones with enough support after you pass away.

Term and permanent life insurance value your policy as proportionate to your earning power now and for the rest of your life.

With funeral insurance, the value of your policy is proportionate to the expense of your desired funeral.  Most final expense insurance policies do not go above $20,000.

Medical exams are not required

Unlike other types of insurance, you are rarely required to take a medical exam to be eligible for final expense insurance.

According to Bankrate, policy applicants will typically be asked to answer a few questions about their health.

However,  this coverage may come with higher premiums than other forms of term life insurance.

Bankrate noted for younger people, who may be paying into the policy for a greater number of years, other forms of life insurance may be preferable.

However, many seniors may still find the cost of a final expense policy is lower than the funeral or medical bills their loved ones would otherwise be financing out-of-pocket.

It’s also important to note, waiving a medical exam is not the same thing as guaranteeing a policy. You will need to check with your insurer to determine your exact eligibility.

Know your provider’s specifics – and compare
While the above information is generally true for final expense insurance eligibility, your best course of action is get quotes from multiple providers .

Before signing onto a policy, be sure to compare quotes from several providers by the life insurance store.

Term insurance maybe a better option for you.

Do I Need Final Expense Insurance?

It really comes down to what a person feels comfortable to leave their loved ones.

Maybe they already have a whole life or term policy.

But did they take out a loan on the policy and reduced the amount given to their loved one ?

Maybe they have outlived their term and our getting a substantial decrease of the face amount.

The average costs of a funeral increases each year is $7,000 to $10,000.

This may include viewing and  burial, basic service fees, transporting remains to a funeral home, a casket, embalming, and other preparation.

These costs do not include a cemetery,  monument, marker, or other things like flowers. It also does not include the plot or the opening of the grave or remembrance party .

Could your family self-insure for your final expenses? It’s a good idea to assume around $10,000 -$20,000 for total funeral expenses.

Do you really want to put the feeling of guilt on a loved one due to leaving one or  two things out of your funeral because you lacked the funds ?

Do you really want a loved one to set up a  Go Fund Page because of improper planning?

If any of these situations sounds like your situation, you may want to consider final expense  insurance.