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Final Expense Life Insurance – What Makes It Different

A loved one’s passing is usually the most difficult experience we can ever have. But besides the emotional stress, we also have to take care of end-of-life medical costs and funeral expenses. Such a combination can be very draining, both mentally and physically, to the surviving family. This is the reason behind the creation of final expensive life insurance.

But considering the entire range of life insurance products that all seem to provide the same benefits, what are the unique features offered by final expense insurance?

Life Preparedness as the Focus

Regular life insurance policies typically don’t include cover for funeral preparation costs. Depending on material and style, a casket alone can cost more than $10,000. This excludes other usual funeral costs like preparation of the body, transportation, headstone, flowers, and so on. With a final expense policy, the family does not have to worry about paying for these essentials, and can instead simply deal with their grief.

A Type of Whole Life Policy

In traditional whole life insurance, the death benefit and insurance premium are often the same all throughout the policy’s life. Most of these policies last for the life of the policyholder, with some building cash value as well. Whole life insurance can be called permanent life because it doesn’t have timeframe limits like term insurance does.

An Economical Option

As it is meant for funeral costs, a final expense policy’s coverage amount is often less than than that of a typical policy. People spend an average of $10,000 to $20,000 on personal insurance, making a final expense policy’s premiums less expensive than more extensive policies.

Hassle-Free Qualification

Since the coverage amount is lower than other types of insurance policies, there are final expense policies that don’t even need a medical exam for screening, and instead rely on applicants’ answers to questions on their form.

So who needs final expense insurance? First and foremost, it never expires (premiums need to be paid, of course) and it holds a cash value over time. With its death benefit only amounting to $5,000 to $25,000, which is way less than traditional insurance, it is generally more affordable. This makes final expense coverage a smart option for seniors who don’t want to burden their families with their end-of-life expenses.

On the other hand, not just seniors will find benefit in final expense insurance. Anyone who doesn’t want to depart from this world with their families unprepared should seriously consider taking out a life insurance policy. By asking different providers for quotes, including a final expense quote, will make it easier to find the best policy for one’s needs and budget.

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