Final expense life insurance, unlike standard life insurance, is not intended to guarantee long-term financial stability to your loved ones. On the other hand, the final expense insurance will provide your beneficiaries with only enough money to meet funeral charges and other final expenses. Some life insurance firms refer to their final expense policies as burial insurance or funeral insurance.
What Makes Final Expense Insurance Different
Final expense insurance differs from standard life insurance in a few essential ways.
- Typical Expense Coverage
For starters, final expense coverage is typically far less expensive than the coverage offered by a regular term life or whole life policy. Many final expense life insurance policies provide:
– Coverage amounts range from the low four figures to the mid-five figures.
– Providing just enough money to cover burial fees.
– Hospital bills.
– Other final expenses for your beneficiaries. - The Policy
Final expense policies aren’t designed to provide a death benefit to help your loved ones pay for long-term expenses like monthly mortgage payments or college tuition. When you apply for a low-cost term life insurance policy, a higher-cost permanent life insurance policy, or a universal life insurance policy, you usually purchase enough life insurance to replace your income for many years.
You are just purchasing enough coverage to cover your final expenses when you get final expense insurance. - No Medical Exam is Needed
Unlike standard, medically underwritten life insurance plans, most final expense insurance policies do not require a medical exam. This means that some people who cannot obtain regular life insurance owing to their medical history may be able to purchase a final expense policy to cover end-of-life expenses. - It Can Be Purchased From A Funeral Provider
You can buy final expense insurance straight from a funeral home in several states. This form of burial insurance coverage can be a cost-effective solution to cover funeral expenses. Still, you should read the policy details carefully to know what you’re paying for.
Conclusion
It’s critical to create a final expense insurance plan. Still, it’s also critical to ensure that your family has the financial stability to meet your final expenses and any bills that may arise in the future. That’s why picking between final expenses and life insurance should be done with caution.
At Lapeira & Associates LLC, we put our clients first by offering them policies that they can afford. Having insurance is a necessity nowadays, and we’re here to help you out. Learn more about our products and services by calling our agency at (855) 963-6900. You can also request a free quote by CLICKING HERE. Any coverage discussed is not guaranteed. Please contact us today to go over your policy to ensure your needs are met! We are here and happy to help.
