Final expense is an end-of-life insurance product that provides beneficiaries with a death benefit once the policyholder dies. This type of policy functions much like traditional life insurance plans, but feature significantly smaller payouts. Because of the lower death benefit payouts, final expense insurance policies also have lower costs in most cases, making them an extremely affordable insurance option.
Final Expenses Can Include Many Things
Final expenses can range greatly and include a large variety of things. This is one of the reasons why they’re so beneficial, as they can significantly reduce your family’s financial responsibility once you’ve passed. If you’re concerned about expenses you may leave behind, consider purchasing a final expense insurance policy.
Cover Funeral and Burial Costs
One of the most common ways final expense policies are used is to pay for funeral and burial costs. Funerals can range in cost, but the majority of them are at least a couple of thousand dollars. According to the National Funeral Director Association, the average cost of an American funeral is about $7,000. This does not include the burial vault, a requirement in most cemeteries. The addition of that expense raises the average to over $8,000. Besides paying for funeral arrangements, many families also have to deal with other expenses. This can weigh on the family and cause financial trouble, so using the payout from a final expense policy is an excellent way to cover burial and funeral costs.
Pay Off Debt
Another way that final expense policies can be used is to pay off debt. Medical debt often arises as individuals require more medical care or treatment. Final expense policies can be used to cover these costs and remove that stress from the family. Other debt can also be paid off by this type of policy. The death benefit from a final expense policy can be used to pay off student loans or credit card debt. Being able to use the money from a final expense policy to cover this type of debt can be incredibly helpful for families and remove some of their worries.
Why Purchase a Final Expense Policy?
There are many reasons to purchase a final expense policy. Removing financial responsibility from the family is one of the biggest reasons why individuals purchase final expense policies. They also can provide the peace of mind that comes from knowing you’ve made preparations for the future. If you’re looking to purchase final expense insurance, our team at Trusted Senior Specialists can help you select the right policy. We believe in the importance of setting aside time to get to know our clients and understand their insurance needs.