Dying can be an expensive business. Many families are burdened by the final expenses for loved ones and sometimes they are stretched to make the final preparations. Battling with the pain of your passing away and worrying about the expenses will be too much of a struggle for the people that are left behind.
But you can help your family by securing Final Expense Insurance, sometimes referred to as Burial Insurance. It is designed to cover the bills that your loved ones will face after your death. Costs include medical bills and funeral expenses.
Depending on your needs, funeral expenses can range from a few thousand dollars to $15,000 and up. You have to make sure that you are not under-insured. Otherwise, your loved ones will be left worrying about funeral costs.
In times of grief, your loved ones would be grateful not to worry about where to get financial support for the cost of your passing. And it will give you peace of mind knowing that your loved ones will be okay, financially, in case of your demise.
That said, if you are considering this type of insurance, you have to make sure you get it right.
Here’s what you need to know.
What is it?
A Final Expense life insurance policy isn’t exactly the same as other life insurance. Term and Permanent Life Insurance value your policy as proportionate to your earning power now and for the rest of your life. Also, Final Expense policies allow easier issue to those who have more medical conditions versus the normal underwriting process of Term and Permanent Insurance. They are meant to help with the Final Expenses of your loved ones with end of life Final Expenses.
With Final Expense Insurance, the value of your policy should always be proportionate to the pre-planning expenses of your desired funeral. While coverage in other forms of life insurance can at times exceed $500,000 dollars, it’s rare for Final Expense Insurance policies to pay out more than $30,000.
Do you need Final Expense Insurance?
The answer to this question is – it depends. If you already have Term or Whole Life Insurance, the payout from those policies can help your loved ones pay for Final Expenses. However, if you have Term Life Insurance and you outlive the policy term, it’s a different story. In that case, you may want to consider Final Expense Insurance.
Alternatively, maybe your family will have plenty of assets to work with when you die. In that case, you may not need insurance as they could afford to foot the bill for your Final Expenses on their own.
It’s a good idea to assume around $10,000 for funeral expenses. But don’t forget to take into account whether you will want a catered party after the service. Maybe you’ll end up leaving big bills behind. In situations like these, you may want to consider securing Final Expense Insurance.
It is no longer a taboo when people plan ahead about the final days. It is always best to be prepared. Besides, when you purchase Final Expense Insurance, you are not only thinking about yourself but it means that you are thinking more about the people who you will leave behind. You do not live to just die. You have the option to die well by planning ahead.
How to plan ahead?
When planning, it is best to put all your wishes into writing. That way, you will be able to take a look at how much you need to prepare. Sometimes, writing down your wishes on how you want to be taken cared of when you are sick or how you want your funeral to look like when you’re gone is taken for granted thinking you can do that later. But the truth remains that what happens next in your life is out of your control.
Putting into writing what you want to happen when you die will take that decision-making load off your family because it will be hard for them to decide during that stressful moment. You also would not want people you care for to argue about your funeral or your burial. Knowing the benefits that your loved ones will receive, it is not difficult to plan ahead.
With Final Expense Insurance, you can choose your beneficiary – someone who you know will be responsible enough to take care of your Final Expenses which is not only limited to funeral and burial or cremation costs but could also cover other expenses that are not covered by other types of policy.
What does it cost?
The exact cost of your Final Expense Insurance will depend on your age. The older you are, the larger the premiums. This is because insurance companies take on more risk when insuring older individuals, given the fact that they’re statistically closer to death. If you buy Final Expense Insurance when you’re 50, you’ll pay less each month than if you wait to purchase until you’re 74.
Consider a recent quote from a Major Insurance company in the United States for a 45-year old male with a coverage of $10,000. The monthly premium is $32.50. On the other hand, for the same coverage of $10,000, a 70-year old male will have a monthly premium of $89.
This major Insurance company offers guaranteed acceptance ages for Final Expense Insurance for ages between 45 to 85 years old (50 to 75 years old in New York). You can choose coverage amounts from $2,000 – $25,000 ($5,000 to $25,000 in Washington).
An advantage of getting this type of insurance is that benefits are never reduced because of age or health. There is no need to answer lengthy health questions and no need to undergo medical exams.
The Takeaway
Whether you choose a life insurance policy that covers funeral expenses and then some, a dedicated Final Expense Insurance policy, or funeral pre-payment, you’ll be doing your loved ones a huge favor.
Taking the time to consider and document your end-of-life wishes may be a little uncomfortable now, but it will make all the difference when the time comes.
To find out more about Final Expense Insurance and to get a free and confidential quote, call the professionals at BBIFinancial at (800) 958-1525 during normal business hours or contact us through our website www.BBIFinancial.net more information.
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