Final Expense Life Insurance: What You Need to Know
Dealing with loss and grief is never something anyone wants to go through. Losing a loved one is one of the most difficult emotional upheavals anyone can experience. Final Expense Life Insurance allows the financial support your family needs to protect them from experiencing a difficult financial upheaval as well.
Final Expense Life Insurance may help cover costs such as funeral expenses and unpaid bills are paid for after your passing. Final Expense Life Insurance operates like other types of life insurance policies with the exception that Final Expense Life Insurance is intended to cover costs related to final affairs, such as unpaid bills, funeral and burial costs. It’s important to note the differences, because while life insurance can top over a million dollars, funeral insurance tends to stay at or below $25,000… So perhaps hold off on hiring Beyonce to sing at your service unless you have more funding.
Do I Need It?
The answer to that depends on your specific situation. Do you already have term or whole life insurance? If so, your loved ones can fall back on that policy to pay for any final expenses. Just make sure you’re very familiar with your policy. For example, if you have term life insurance but you’ve already outlived your term, your family may not be able to use it. In cases like this, Final Expense Life Insurance would help pick up the tab.
A typical funeral can cost an average of around $10,000, and much like with weddings, the costs are continuing to skyrocket. These costs don’t take into account things like a post-ceremony reception, outstanding bills, or anything that happens at the cemetery (should that arrangement apply), such as flowers, plot, monument, grave marker or transportation to the site… all of which can easily add unexpected or planned costs to the funeral bill. Oh– and don’t count on that “lump sum” payout from social security. That amount tends to hover around $225. In some cases, a family can cover the costs with liquidated assets, or you may be able to self-insure. But if not, considering Final Expense Life Insurance may be right for you.
One of the greatest gifts you can give your family is the ability to take care of you and your estate when you are no longer here to take care of them. Having Final Expense Life Insurance can also give you the peace of mind that comes with knowing that, no matter what, whenever the time comes everything is should be taken care of. These types of conversations can be tough, and making the proper arrangements can seem overwhelming both financially and emotionally. While this final chapter of life isn’t fun to address, it’s incredibly important to do so to ensure that you and your loved ones have everything taken care of when the time is necessary. Don’t go it alone – talk to a licensed insurance agent about your options and make sure that you find the right type of coverage for you and your loved ones today.