Understanding Final Expense Life Insurance
Many people view life insurance as a way of replacing their income after they die to help out their surviving loved ones.
However, it is not always about income.
Because burials and funerals often cost a lot more than people think they do, it is important to understand options like final expense life insurance.
After all, the real point of life insurance is ensuring your loved ones are taken care of after you die and do not have to drastically change their lifestyle. Being faced with unexpected bills after your death could definitely get in the way.
There are a lot of different options for getting life insurance, each of them has different advantages and disadvantages. Not every applicant needs the sizable coverage that most life insurance policies provide. For those applicants, a final expense insurance plan could be the best option, but there are several different factors that you should consider when you’re shopping for life insurance.
Today we look at final expense life insurance plans and explore some of the different pros and cons of these plans. The article will also discuss the different options that you have and ways that you can guarantee that you have enough life insurance protection for you family.
What are ‘Final Expenses’?
As indicated above, Final Expense life insurance refers to insurance used for covering the policyholder’s “final” costs, like burial or cremation, funeral, etc. While these things may seem fairly simple, they can be surprisingly expensive. Caskets alone cost hundreds to thousands of dollars, and with other traditional expenses added on, the average price of a funeral today is upwards of $7,000.
That said, your beneficiaries are not obligated to use the death benefit of a Final Expense or burial life insurance policy for these specific costs. Like other life insurance policies, your loved ones are free to use the payout in the way they see fit. However, if they do find they need some help in paying for your final expenses, the money is there to help.
Every year, there are countless families that lose a loved one unexpectedly. On top of going through the emotional pain, they are left with trying to pay for the funeral expenses that are left by them. This can put a serious strain on their budget and make the situation a thousand times worse. Luckily, this is where a final expense life insurance policy comes in.