How Final Expense Life Insurance Can Offer Peace of Mind
Your legacy should be a point of pride. The memories and impressions that you leave behind are how you will be memorialized when your time has come. Leave behind a legacy of celebration and joy.
End-of-life planning can feel like a daunting decision, but it is one that shouldn’t be left as a burden for your loved ones. The slew of funeral costs adds up quickly and without a final expense life insurance plan, many families struggle to provide coverage for the costs. This can lead to sacrificing tuition coverage, mortgage payments and many other unplanned cuts. There is enough emotional baggage in a time of loss. Financial stress can overwhelm those that are left to cover the funeral and other end-of-life costs. By planning ahead for final expenses, you will be able to show your support for your loved ones in a time of need. Giving them one last gesture that shows how much you appreciate their support and care about their wellbeing.
What Is Final Expense Life Insurance?
Final Expense Life Insurance assists in the coverage of expenses associated with death. This can include final medical bills but is often focused on all of the expenses that go into funeral costs such as embalming or cremation, caskets and vaults, facilities charges, memorial services and transportation. With your focus often directed to current health care coverage costs, it is easy to overlook the necessary pre-planning for end-of-life costs. These costs are not something that can be put off until the last minute. Tie up all your loose ends so that loved ones are not left to sell their personal assets or dip into savings accounts in order to cover your funeral costs.
What Does Final Expense Life Insurance Cover?
The National Funeral Directors Association estimates that funeral related expenses typically cost more than $8,500 per person. And that is strictly expenses related to the funeral itself, and does not include a headstone, plot, flowers and other extras that we have come to expect at a memorial service. Whether you plan to be cremated or buried, there are many additional costs that accrue along the way. Insurance plans can be used to cover more than just funeral expenses. Your payout can cover:
- Outstanding medical bills
- Credit card debt
- Advance payments for terminal illness
Depending on the selected plan, your Final Expense Insurance could cover costs ranging from $2,500 to $35,000. An experienced insurance agent can help you decide what amount is best for you and your family depending on your planned arrangements and how much you would like to contribute to the plan on a monthly basis.
Is it Expensive?
No. Final Expense Insurance plans are affordable and do not require a medical exam unlike other life insurance plans. Because plans are created individually, you decide how much you would like to contribute. Individuals with preexisting health conditions will never be turned away from a Final Expense plan either.
Are there alternatives to Final Expense Insurance?
There are alternatives, but they come with different advantages and disadvantages. Not unlike any insurance plan.
- Traditional life insurance – This type requires a paramedical exam to get a quote. If you’re older or in poor health, this option might not be feasible.
- Guaranteed issue life insurance – While this type does not require a paramedical exam for approval (hence the word guaranteed), it does come with a higher premium to foot the bill.
- Pre-need insurance/trust – This is in essence a specific final expense insurance. Instead of having wiggle room with the funds, these are offered by funeral homes so they only deal with direct funeral costs.
One major benefit of a Final Expense plan is that it has a cash value and the intention is to cover death-related costs, which takes some of the stress off of the beneficiary for funeral planning.
How do I choose a Final Expense plan that is right for me?
Preparing your end-of-life plans doesn’t need to feel morbid. As you select the services you will require, keep in mind how your family and loved ones will be celebrating your life. You don’t have to select a plan alone. You can discuss your options for Final Expense planning with an insurance agent you trust.