Final Expense Life Insurance
How Does It Work?
Although the topic is something most people would rather not think about, planning for one’s final expenses is necessary, because it insures loved ones are not left with a financial burden at a difficult time. In exchange for a low monthly premium, a final expense life insurance policy can provide the funds necessary to cover the costs needed to carry out a person’s last wishes.
Final expense life insurance policies have a permanent duration. This means that coverage will last throughout a person’s lifetime if premiums are paid as planned, and the benefit will be available when the family needs it regardless of how long the policy has been in place, the full benefit is paid when there is a claim. Until then, funds are guaranteed and managed professionally by an insurance company.
When the time comes, the family receives a lump sum to pay for final expenses. The advantage of funding final expenses through a final expense life insurance policy is that the family is not locked with a specific funeral home since things can change over time.
What Does It Cover?
The death benefit in a final expense life insurance policy is set according to the costs anticipated to carry out a person’s final wishes including:
- Ceremony and reception
- Flower arrangements
- Cremation or burial
- Casket or urn
- Final resting place
How Much Does It Cost?
Unlike other types of policies, premiums are very affordable and will not increase throughout the duration of the policy. A person age 65 can expect to pay $15 and $70 a month depending on the amount of insurance needed to cover the person’s last wishes.
Medical exams are not necessary to apply for coverage. Instead, the application process consists of answering a few health questions, and eligibility can be determined the same day. Coverage is available for people between the ages of 50 to 85, and moderate pre-existing health conditions are acceptable for most plans. For people with severe pre-existing conditions, there are specific products that guarantee eligibility.
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