About Final Expense Life Insurance

Final expense insurance is one type of whole life insurance policy that offers a certain death benefit and can be easily approved. It is also synonymous with burial insurance, funeral insurance, and modified whole life insurance.

As such, there is not much difference between final expense insurance and life insurance. A final expense insurance is designed to include a death benefit that covers expenses such as funeral costs, cremation, embalming, or memorial services.

The beneficiaries of such insurance can use the proceeds to pay for property taxes or any other purpose than the defined benefit.

Understanding Final Expense Life Insurance

Having the best burial insurance means that the premiums of your policy cannot increase, and the death benefit of the policy cannot decrease. In contrast to a term policy, such a policy does not expire once the policyholder reaches a certain minimum age.

A whole-life policy is also good for accumulating cash value that makes you eligible to borrow against it during your lifetime. So if any loans remain unpaid at the time of the insured’s death, the amount of money receivable by the beneficiaries shall reduce by that amount.

When applying for a final expense life insurance, one does not need to go through the hassle of dealing with medical exams or letting the insurance companies access medical records. The insurance company may only seek answers to some basic health-related questions.

Just like any other type of life insurance, the premiums for burial insurance for seniors over 80 and other age groups are determined based on the age and health of the insured.

Many insurance companies will be willing to issue a final expense life insurance policy to people from the time of their birth up to the age of 85. But, a lot can depend on the policy and the insurer, due to which there can be differences in the minimum and maximum ages applicable to the policy.

How Does It Work?

Typically, the need for the best funeral insurance arises when a person no longer has insurance through the employer or an individual life insurance policy. Without considerable financial savings, the financial burden on the spouse and kids might not ease upon their demise.

With a traditional life insurance policy, the premiums can be expensive due to age and health. A final expense life insurance policy solves this puzzle.

Insurance companies design burial expense insurance to absorb the risk of some serious medical issues. It can help relieve the worries of the family members since they can easily pay for the expenses that accrue after death.

The low coverage amount makes it an affordable option. The premium amount on such policies does not change and, thus, helps in budgeting.

There is no condition under which the policy may be canceled.

Final Words

For those who have ample investments, savings, and regular life insurance, the need for a final expense insurance policy may be redundant. However, it is a brilliant option when one cannot afford regular insurance.