Whole life insurance, which last expense policies are a form of, is intended to cover the costs associated with the insured person’s death. There is a guarantee that neither the premiums nor the death benefit will ever go down after you’ve signed up for coverage.
The expenditures associated with items like a funeral, a memorial ceremony, embalming, a coffin, cremation, posting an obituary in numerous newspapers, and flowers might be covered by final expense insurance.
About Final Expense Insurance
When a person passes away, last expenditure insurance kicks in and covers their outstanding medical bills and funeral and burial costs. You may also hear it referred to as burial or funeral insurance.
The majority of older people choose this option. Whole life insurance, often known as last expenditure insurance, is characterized by a relatively low death benefit and a straightforward application process.
Benefits
Having last-expense insurance in place may ease the financial burden on your loved ones after your passing by helping them to cover funeral and burial costs. Here are a few benefits:
- If you are elderly or sick to be covered by traditional insurance but still want to provide for your loved ones, this might be a viable choice.
- The lesser level of protection makes it more manageable financially.
- You may borrow against or utilize the cash value that accumulates in this insurance policy as collateral throughout your lifetime.
- The fixed monthly premium might be a boon to those who need stability in their financial plans.
- You will always be covered.
- Insurance companies will not terminate the coverage, no matter how bad your health is.
Although the death benefit was designed to cover burial and other last costs, you can utilize it for whatever purpose the recipient sees appropriate, including leaving a financial legacy, paying off a mortgage or credit card, or paying off any outstanding debt.
Conclusion
The face value of traditional insurance is often higher than that of final expense insurance, which is a kind of whole-life insurance. In contrast to most life insurance plans, which focus on income replacement, this one is geared toward paying the last costs of an individual’s life.
At Lapeira & Associates LLC, we aim to provide comprehensive insurance policies that make your life easier. If you need assistance finding insurance coverage, we’re here to help. You can get more information about our products and services by calling our agency at (855) 963-6900. Get your free quote today by CLICKING HERE. Topics and coverage discussed in this article are not guaranteed, consult with your agents to determine what your policy does and does not cover. We are more than happy to help!
