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Final Expense Insurance Policies

How do final expense policies work?

If you are concerned about how your loved ones will replace your income if you suffer an untimely death, final expense insurance may be a convenient option that you can pursue to create a financial cushion for your family. Final expense policies are whole life insurance policies that have a few special features. This is how final expense policies work.

What Is A Final Expense Policy

Final expense policies function the same as whole life insurance policies, in that they provide a lump sum payment to the policyholders beneficiaries upon the death of the policyholder. Though, unlike typical whole life insurance policies, final expense policies only offer smaller payouts than whole life policies. Also, because these policies have smaller benefits packages, they are often less expensive. Therefore, final expense insurance is a great option for individuals who cannot afford a whole life policy, but still would like some level of life coverage. 

Final Expense Policy Benefits

Upon the death of the policyholder, the bereaved stated in the policy contract will be granted access to a death benefit. The death benefit is a cash sum ranging between $2,000 and $5,000. The purpose of final expense insurance is to provide the family with enough funds to cover expenses directly related to the death, such as funerals, memorial services, and cremation. However, the beneficiaries are free to use the money however they please. 

Final Expense And Whole Life

Some people supplement their whole life insurance policy with final expense insurance. While this may seem redundant, it may make sense for some individuals. Similarly, a person who has already pre-paid their funeral expenses may find final expense insurance to be an unnecessary expense. Work with a trusted advisor to determine if this type of coverage is right for you. 

Final Expense Eligibility

There are many insurance companies that are willing to issue final expense policies to people of almost any age, typically from birth to age 85. The older you are, the lower your death benefit will likely be, although some insurers will offer the same death benefit packages to all members. Final expense insurers also do not require a medical exam or access to your medical records. You will have to answer some health questions, which may impact your ability to qualify, but the eligibility rules are far more lax than those of traditional whole life insurance policies. 

Find Final Expense Insurance

Whether you already have life insurance or you are a first time buyer, having help with your search for coverage can ensure that you find the best policy possible. The knowledgeable experts at Trusted Senior Specialists are prepared to help you get started. Contact us now to schedule a consultation.