Final Expense vs. Life Insurance - Trusted Senior Specialists

If you are worried about the expenses you will leave behind after your passing, you may be interested in procuring end of life insurance. Final expense insurance and traditional life insurance are two options you will encounter when shopping for end of life coverage. This is how the two types of insurance compare to one another.

What Is Traditional Life Insurance

Traditional life insurance policies pay its beneficiaries a death benefit upon the time of their death. The death benefit is often intended to replace the deceased’s income for a reasonable amount of time. There are three major types of traditional life insurance; whole life, term life, and universal life. This is what each type of traditional life insurance offers:

• Term life insurance – Term life insurance provides coverage for a set period of time. If the policyholder dies within the contracted time period, their stated beneficiaries will receive an agreed upon death benefit. This benefit can be used as they see fit. 
• Whole life insurance – As the name implies, whole life insurance offers policyholders life coverage for the entirety of their lifespan. This coverage is only maintained for as long as they continue to pay their premiums. At the time of their death, a lump sum payment will be granted to their beneficiaries. Whole life insurance policies also have a cash value component that allows policyholders to stake value in their policy and tap into that value when they need to. 
• Universal life insurance – Universal policies, like whole life policies, are permanent life insurance plans. The only difference between the two is that a universal policy offers more flexibility in how you arrange your costs and benefits over the course of your lifetime. Unlike whole life plans, universal policies may be altered significantly to suit your new life circumstances. This makes them ideal for individuals who want more control over their life insurance policy. 

What Is Final Expense Insurance

Final expense insurance is a type of life insurance that is more accessible and intended to cover end of life expenses like funerals, cremations, and burials. Final expense insurance is less expensive than many traditional whole life policies, but also offers far lower death benefit amounts. Therefore, final expense insurance should not be considered as a replacement for traditional life insurance policies. Instead, it can serve as an alternative for people who cannot afford a traditional policy or a supplement for people who already have coverage. 

Getting Final Expense Or Life Insurance

If you want to acquire a final expense insurance policy, there are few underwriting requirements and the insurer can only ask you a few specific questions about your health. In most cases, anyone that fits within the required age range can qualify for a final expense policy. This is not the case for traditional whole life plans. Traditional insurers often require extensive underwriting in order to arrange a fair rate for your policy. In some cases, you may even be turned down for coverage based on your health status. Therefore final expense insurance is a reasonable alternative for people who fail to qualify for a traditional plan. 

Find End Of Life Insurance

Don’t make this decision on your own. Get help from the knowledgeable insurance professionals at Trusted Senior Specialists. Use our contact form to reach out to us and schedule a consultation.