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.
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:
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.
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.
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.