Sooner or later, most of us must face the loss of a loved one. Shortly after the grieving is over, surviving loved ones often find themselves having to deal with medical expenses and costs for the funeral. These expenses will only add to the pain and stress felt by surviving friends and family members were it not for the benefits of having last expense life insurance.
Purchasing final expense insurance helps to prevent these added pressures on those left to deal with arrangements that can be quite costly without coverage in place. A final expense policy or “burial insurance” provides for your loved ones a sum of money, based on the size of the policy upon your death, that enables them to cover these expenses.
The benefit of last expense life insurance
Since most life insurance policies aren’t designed to address the many costs family members must pay when preparing for a funeral, the industry created the final expense policy to address this concern. Even an inexpensive casket alone can cost upwards of $10,000 dollars, depending on the style of casket and the materials used.
There are other costs typical to many funeral arrangements, such as preparation of the body, grave liners, flowers, a headstone, and transportation for friends and family members. A final expense policy can help with these costs as well as protect your family from having to go into their own savings as a result of a heavy financial burden.
How this policy differs from whole life
Final expense insurance is a type of whole life policy, but with most traditional whole life policies the death benefit and the insurance premium remain the same for the life of the policy. Whole life insurance is often referred to as “permanent life” because the term of the policy isn’t limited to a specific time frame like term insurance. Final expense is more affordable than most other insurance policies because it’s typically used to cover funeral costs, so the coverage amount is generally much smaller than traditional policies.
Taking out a last expense life insurance policy is often the smart solution for people looking to protect their loved ones from ever-rising funeral costs and is typically easy to qualify for because you won’t likely need to take a medical exam. Speak to a qualified broker that can answer any questions you may have.