Final expenses can be a major financial burden to your loved ones and exacerbate an already difficult time.
This is truer considering that the burial and funeral costs increase year after year across the world.
However, with a final expense insurance cover, you can defray your end-of-life expenses, ultimately saving them from the burden.
One of the significant benefits of final expense insurance is that it protects your family after your death.
This is because it provides you with the ability to state the beneficiaries to receive the payout of your policy.
Although final expense insurance prioritizes easing down the financial risk, it offers many other benefits to policyholders and their families.
This post will discuss the major benefits of purchasing a final expense insurance policy.
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It eases the financial burden for your loved ones.
When you pass away, your loved ones view the responsibility of laying you to rest as a final opportunity to express their love.
Such situations require them to spend a lot of money, even more than they can afford. With burial and funeral costs rising every year, this can potentially leave them in a difficult financial situation.
That said, one of the best ways to save your dear ones from stress when you die is by purchasing a final expense insurance policy.
Planning your funeral is more comfortable than letting your family dip into their savings to cover your funeral or burial costs.
Precisely, a final expense policy helps cover your end-of-life expenses, which relieves your family of the enormous financial burden.
In fact, this is the main reason why anyone should consider purchasing a burial insurance policy.
Besides, final expense insurance provides your family with much-needed peace of mind at moments of grieving.
As such, your near and dear ones can rest easy knowing they will receive financial help from your insurer.
It allows you to plan your final arrangements.
Final expense insurance policies are primarily meant to help defray the end-of-life expenses of the policyholder.
The coverage amount can help with medical bills, funeral expenses, embalming, cremation, funeral home costs, and purchasing casket or urn.
When you purchase a policy, it gives you ample freedom to plan your final arrangements. Depending on the coverage amount you obtain, you can document how you want beneficiaries to spend the death benefit.
As such, it is safe to say that purchasing a policy helps make your funeral represent who you were.
Even better, most final expense insurance providers allow you to write down how you wish your burial service to be.
Ultimately, this lets your family know that you always wanted to be buried.
After all, every step from purchasing a casket to laying you into rest represents you and what you’ve done in life to ease your burial.
Final expense insurance provides your family with immediate funds to cover the final expenses.
Final expense insurance doesn’t just promise to help your loved ones with costs associated with your burial or funeral.
One of the most exciting things is that the insurer pays out the death benefits immediately after you pass away.
To ensure this, most final expense insurance providers promise to make the death benefits available to your beneficiaries as soon as you pass away.
This allows your family to immediately commence arrangements relating to your burial and funeral.
Importantly, it is the responsibility of your named beneficiaries to inform the insurer when you pass.
In most cases, after claim approval, the insurer will pay the death benefits tax-free to the beneficiary’s account within 48 hours.
One of the Major Benefits Of Final expense insurance policies are easy to apply.
Relative to other types of life insurance, it is easier to qualify and get approved for a final expense insurance policy.
Mainly, this is because policies do not require applicants to take an in-person medical exam.
For the most part, you can complete the application for a final expense insurance policy online.
The elimination of medical exams can save you significant time that they would otherwise spend during the in-person medical exam.
All in all, you will be required to complete a medical and lifestyle questionnaire in lieu of a medical exam.
From requesting quotes to completing the application, final expense insurance providers make everything straightforward. This makes the whole process less challenging for seniors looking to buy policies.
Final expense insurance policies are available to people with poor health.
Another interesting thing about final expense insurance policies is that people with poor health can qualify.
As such, it is an excellent option for people being barred from certain insurance policies due to their poor health.
When applying for a final expense insurance policy, you are only required to complete a medical questionnaire.
As such, you won’t be denied a policy just because of poor health or pre-existing medical conditions. You can qualify for a policy even when you have chronic medical conditions like:
- Heart disease
- Alzheimer’s disease or Dementia
- Hospice or terminal illness
- AIDS or ARC
People with pre-existing conditions are at perfect liberty to pursue final expense insurance policies.
Final expense insurance is probably the only type of life insurance for which you can qualify when you are bedridden or confined in a nursing home.
Depending on the insurer, you could qualify when you need 24-hour oxygen to assist in breathing.
Premiums for final expense insurance policies never increase.
This is good news to seniors planning to purchase final expense insurances policies.
Thankfully, most reputable life insurance companies offer a feature known as “price lock” for their final expense insurance policies. With this feature, policyholders are guaranteed that the premiums will remain unchanged throughout their lives.
This means you will never be surprised by a rate increase.
Besides, price lock makes it easy for you to budget because you know when and what to pay. This is a very beautiful and advantageous feature if you are on a fixed income.
Final expense insurance policies do not expire, and coverage never fluctuates.
Final expense insurance is a type of whole life insurance. This means policies stay in force from the day of approval through the policyholder’s death. Precisely, final expense insurance policies do not expire.
However, there is a condition: as long as premium payments are timely made.
What’s more, the coverage amount will never fluctuate even when inflation hits the economy. This gives you and your family peace of mind knowing that the insurer will pay the death benefits after your death.
However, before purchasing a policy, it is noteworthy that there are things that may decrease your policy’s death benefit.
The payout to your beneficiaries will decrease if you borrow a loan against your policy’s cash value. It will also reduce, potentially to zero dollars, if you request accelerated death benefits.
Final expense insurance policies are customizable with riders.
Final expense insurance is designed to provide your loved ones with cash to cover expenses associated with burial or funeral. The good news is that it doesn’t stop there.
When buying your policy, you can customize it with riders to best meet your needs. If you’re not acquainted, riders are additional benefits that can be included with your policy or added for a fee. They offer extra protection and may let you cover your kids or spouse within your policy.
In most cases, carriers will allow you to add accelerated death riders and accident death riders to your ordinary policy. Others may allow you to customize your policy with family insurance and AD&D riders.
Final expense insurance benefits are not taxable.
This is pretty straightforward. Death benefits are not taxed no matter the coverage amount you obtain.
When you pass away, the insurer pays out the set death benefit tax-free to your beneficiaries.
You can buy a policy with a lower death benefit.
Although the face value of burial insurance policies is typically small, that’s all many people need or can afford.
That said, people who cannot afford policies over $40,000 can look at final expense insurance as a potential benefit.
Interestingly, smaller policies can help offset end-of-life expenses and other financial burdens. After all, a typical burial costs anywhere from $6,000 to $12,000.
Final expense insurance accumulates cash value over time.
This is one of the most significant advantages of final expense insurance that makes it appear more of an investment.
The insurers allocate a portion of each premium to your cash-value account when you pay premiums.
Over time, this account grows to a substantial amount that you, as the policyholder, can use before death finds you.
Depending on your wishes, you can leverage the accumulated cash value in several ways.
If you are experiencing financial challenges, you can use the accumulated amount to pay for premiums.
Even better, the accumulated cash value can be borrowed against should you need a loan that requires collateral.
Some carriers may allow you to withdraw the build-up cash and spend it for any purpose.
In a nutshell, you have an expansive way to use the amount that your policy accumulates.
Final expense insurance gives you the freedom to choose your beneficiary.
When you buy a final expense insurance policy, it is not a must that you state your close family members as beneficiaries.
You are given an open chance to choose who you wish to plan for your funeral or benefit from your policy.
You can opt to have either your close friends, charity organization, funeral home, company, or even a close family member.
For instance, if you get too old and have no immediate children or known relatives, you will need to pick other people or organizations to take care of your final rites.
Whoever you pick as a beneficiary should be in a position to use the funds to cater for everything concerning your send-off and any other additional aspects.
Final expense policy payouts can be used for any purpose.
Your beneficiary is responsible for making decisions on using the payout without being given instructions from the insurer.
While the beneficiary uses an open mind to decide how to use the policy payout, most individuals consider the deceased’s wishes.
Precisely, beneficiaries fulfill the desires of the dead person, and if they have some balance, that’s when they use it for other purposes.
The final expense policy payout covers several ordinary expenses. The most important one is the funeral expense.
The beneficiaries should plan and organize adequately to pay for all funeral expenses. These expenses may include preparing the dead body for public viewing, buying a casket, cremation, an urn, and many more.
In a situation where you were hospitalized, and there is no one to clear your bills, then the beneficiary may use the payout to pay for hospital bills.
Another common use of insurance policy payout is the payment of debts. Your beneficiary can use the funds to clear your debts and protect the value of the property you left behind.
You can get coverage with lower premiums.
On many occasions, most people view funeral expense insurance policies as expensive, but the truth is, not all are that expensive.
You can easily request quotes from several companies and analyze them. You may, luckily, land a cheaper policy, with a sensible coverage amount, and offered by a reputable company.
It enables you to be at peace knowing that your funeral will represent who you really are.
When you buy a funeral insurance policy, you can discuss with your beneficiaries how you wish to be handled when you die.
Therefore, you will live peacefully without thoughts of whether your body will be dumped or well handled.
In addition, you will be assured that your burial ceremony will be held as per your wish to reflect your standards and status while you were alive.
Gives you confidence that your family is secure.
Having a final expense insurance policy gives you confidence that your loved ones will not suffer financially when you pass on.
If you are elderly and choose your close allies to benefit from the insurance cover, you will enjoy your elderly days, knowing that your people won’t suffer.
Funeral expense insurance policies are perfect for seniors with no lifelong dependents.
Final expense insurance is designed to pay costs associated with your funeral,
meaning it can be perfect for older adults. This is because, later in life, it is less likely that you will have people who depend on your income.
If you are a senior, all your family may need upon your death is the readily available cash to pay for your funeral.
Do final expense insurance policies expire?
Final expense insurance policies do not expire as long as the policyholder pays the premium on time.
Do you need to take a medical exam to qualify for a final expense policy?
Definitely NO. Final expense insurance is a no-medical exam whole life insurance policy.
However, you have to complete medical and lifestyle questionnaires to qualify.
How can final expense benefits be used?
While final expense policy payouts are mainly meant to cover end-of-life expenses, they come with no strings attached, meaning they can be used for any purpose.