Most people aren’t comfortable talking about end-of-life issues, especially with their family members. However, it’s essential to plan for the financial security of your loved ones after you’re gone.
Sooner or later, everyone has to die. No matter how you die, your family members have to pay for the funerals and other death-related items.
While you can’t avoid death, you can at least make sure your loved ones don’t have to struggle financially by paying for funerals. One of the most popular ways to do that is to get a final expense life insurance.
Final Expense Life Insurance – an Overview
Final expense life insurance is a permanent whole life insurance policy. Also known as funeral or burial insurance, it comes with death benefits that can be used to cover funeral costs, medical costs, and other end-of-life expenses.
While final expense insurance is pretty similar to standard life insurance, the first one is quite affordable since you can purchase smaller policies.
Although the death benefits are supposed to cover your funeral related cost, the beneficiary can use them for any purpose, such as paying taxes. Check this website for quotes and more information about final expense insurance.
Why Should You Go for Final Expense Insurance Policy?
Planning for your death isn’t a pleasant task. However, the thought of leaving your family members to take care of your final expenses can be more painful.
Apart from saving your loved ones from dealing with your death-related costs, there are some other reasons why you should buy this insurance policy.
Cost-Effective Solution
If you want to get regular life insurance after your retirement, the chances are that you have to pay a high premium because of your age and health condition. Considering your financial situation, this might not be a great choice.
Final expense insurance can reduce your worry regarding the cost. Compared to other life insurance policies, the premiums of funeral insurance policies are quite affordable, thanks to their smaller death benefits.
Since this insurance policy is designed to tackle end-of-life problems, you can secure your policy at an affordable rate regardless of your health condition.
No Medical Exam Required
Sitting for a medical exam to get life insurance can reduce your chances of getting qualified, especially if you have a poor health condition. With final expense insurance, you don’t need to worry about such things.
Signing up for this insurance is quite manageable since you don’t have to go for a medical exam. Most insurance providers will give you a questionnaire. Just fill it up, and you’re good to go.
A Custom Plan
Once you pass away, there will be expenses for your funeral, cremation, as well as your medical bills.
While some people think these costs can be covered by regular life insurance, things can be different if some unforeseen costs appear.
Having final expense insurance means there will be money to meet this specific need, and your loved ones don’t have to pay for it.
The Value Will Increase Over Time
This is one of the best features of this insurance policy, and everyone loves it. Just like a savings account, the funds you put aside for your final expense will increase at a predictable rate of growth.
So, even if you start with a smaller amount, you don’t need to worry. Since the rate will increase, the final amount will be decent enough to cover the relevant expenses.
Flexibility
There will be some extra costs after your death, which may put your loved ones in a financial crisis. Regular life insurance may not cover medical bills, taxes, legal fees, and other small-time debts.
In this case, final expense life insurance can come at your rescue. It lets your beneficiary spend the money the way they want despite given instructions.
Your Family Will be Protected
Once you’re gone, the last thing you want your grieving family members to do is worrying about covering the costs of your funeral. Besides, out of their emotions, they might end up spending every penny they have.
To avoid such situations, you need a separate fund that will ensure everything goes smoothly, and your loved ones don’t have to pay for it.
Non-Taxable Service
Since there are already so many expenses regarding your funeral, you don’t want your family to worry about the taxes.
Another great feature of this insurance is that it’s completely tax-free. Since you’re transferring funds from an investment, there’s nothing to worry about the growth or taxation.
A beneficiary of Your Choice
For some insurance policies such as the preneed policy, your beneficiary will be the funeral house. This is the wrong choice since your family members won’t get the benefits.
On the other hand, final expense insurance lets you choose your beneficiary who will have all the legal authority to spend the money. You can also leave instructions for them about how you want the money to be spent. And if a life insurance beneficiary dispute ever arises, it would be wise to consult an attorney.”
Peace of Mind
You may be worried about how your family will be dealing with all the expenses regarding your burial when they have lots of other things to do. With final expense insurance, you can make sure all your final payments are cleared ahead of time.
Besides, your family members might be worried about how to show you proper respect through the funeral. Having such insurance will let them know you’re getting buried the way you want to be. This will bring them peace of mind.
Chance of Reconsideration
You may end up buying the wrong insurance policy and want to withdraw it later. However, not every insurance policy, especially the prepaid one, will let you do so.
Final expense or burial insurance allows you to stop the insurance policy if you want. Some companies even provide a full money-back guarantee if you change your mind within a specified period.
Final Thoughts
Death of a family member leaves everyone overwhelmed with grief. So, it’s not a good idea to place a heavy burden on them for your funeral costs while they are mourning.
If you’re old and on a budget, you can go for final expense insurance since it doesn’t require a high premium. While the total benefit isn’t a lucrative amount, it can still cover your funeral and other relevant costs without any trouble.
I’m a 20-something stay-at-home mother and wife. I have an amazing husband, a beautiful daughter, two loving dogs, and a lazy cat. I wouldn’t change my life for anything! I love to read, listen to music, cook and blog!
Speak Your Mind