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Final expense insurance is designed to cover the costs associated with a person’s passing. It is also often referred to as burial insurance or funeral insurance and is typically a smaller policy than other life insurance policies. When a person passes away, the costs associated with their funeral and other related expenses can be pretty expensive. Final expense insurance ensures these costs are covered, and the family is not left with a financial burden.
Final expense insurance is a type of whole life insurance, which means the policy will remain in effect as long as the premiums are paid. The death benefit is typically a fixed amount and is paid upon the insured’s death. The policy is designed to cover the costs associated with a funeral, including the cost of the funeral service, cemetery plot, casket, and other related expenses.
The coverage available through final expense insurance varies depending on the company and the policy. Generally, the amount of coverage purchased should be enough to cover the costs associated with the funeral and related expenses. Since final expense policies are smaller than traditional life insurance, the death benefit will typically range between $2,000 and $50,000.
Understanding the different types of final expense insurance can help you decide which policy is right for you.
Simplified issue is generally easier to qualify for than traditional life insurance policies, as it usually only requires answering a few health questions and not a full medical exam. Simplified issue final expense insurance is typically sold in smaller amounts, making it an affordable way to help cover the costs of burial and other funeral expenses.
Guaranteed issue has no health questions or medical exams, meaning it is guaranteed to be issued regardless of an applicant’s health history. It typically pays a fixed amount of money upon the policyholder’s passing, making it a great option for those looking to provide a financial cushion for loved ones. This type of insurance is generally much less expensive than traditional life insurance policies and is a great option for those on a budget.
Final expense insurance is a great way to give your family peace of mind and provide them with the financial resources they need. To learn more about why it may be a good option for you if you don’t qualify for traditional life insurance, give Caleb Hart Insurance a call today!