FINAL EXPENSE
Do You Need Final Expense Insurance?
Do You Need Final Expense Insurance?
After working almost your whole life, you are finally retired. Congrats! Now that you’re retired, imagine the places you could visit and how you can spend more time with your family. As you transition out of the workplace, your employer may terminate your life insurance policy. In some situations, the coverage may go on for a while and gradually diminish.
Now think about this...
Do your loved ones count on you for Support? Do you have debts to pay off? Undoubtedly, retiring is a feat every worker should look forward to and enjoy. But what happens when you don't have any insurance policy? What happens to your family when you die? An important aspect to consider is how your spouse and children can be protected from any financial impact if the unthinkable should occur.
So what can you do?
Ideally, you can talk to an agent to apply for life insurance. But you might not be able to afford the premiums as a result of your health and age.
Sadly, life insurance companies don't issue coverage with a small death benefit to make the insurance premiums match your budget. You might want to give up at this point. That's where final expense insurance comes in.
What Is a Final Expense Life Insurance?
Final expense insurance is an insurance coverage that comes with a small death benefit. It is also easy to qualify for this policy. And beneficiaries can use the policy's benefit to cover medical and funeral costs.
As opposed to regular life insurance policies that require a medical test to fix your policy's cost, final expense policies don't need such comprehensive examinations, and applicants can get insured after answering a few questions.
What's the cost of a final expense life insurance?
On average, a final expense insurance policy costs between $30 and $70 monthly. It also depends on your health, sex, age, coverage amount, and the insurance company. If you're over 70, your premium may cost about $70 to $120 monthly. Bear in mind that a cheap rate normally means lesser benefits and features for your loved ones. So adding a few extra bucks means more support your family gets when you die.
While cost is often the major factor people center on, it's not really the most important! You don't need to focus on policy's cost; instead, think about the expenses you'll leave behind and how much it will cost your loved ones.
The Benefits of Final Expense Life Insurance
True, you can get this policy to provide your loved ones with the required funds to pay for your funeral and other costs when you pass on. But is it a good deal? Let's find out, shall we?
● It's Easy to Get Insured
Since the coverage has a small benefit, you may not need to do a medical test to get insured. Most insurance companies issue policies based on answers to medical history questions while applying.
Also, this insurance is normally for people aged 50 to 80. So irrespective of your health, you will get approval. After applying, coverage can start as soon as the next business day.
● Peace of Mind
With a final expense life insurance policy, you don't need to worry about putting a financial burden on your loved ones. It can cost between $7,000 and $20,000 to fund a funeral, depending on your location. This insurance policy can also fund specific end-of-life bills - all to give you the peace of mind you need.
● Pay Directly to the Funeral Home
Depending on the type of final expense insurance you want to buy, there may be options to select your preferred funeral home and type. You can tender payment (up to the covered amount) directly to your preferred funeral home.
Any disadvantage?
One major drawback of final expense life insurance is its face amount. The face amount is smaller compared to other traditional life insurance, plus the benefit can be used for anything, even though the beneficiary took out the policy to cover burial costs.
Takeaway
If you're retired and need financial protection without a medical exam and answering health questions, you can look into final expense life insurance.
And to ensure that you pick the ideal life insurance coverage as a retiree, you need to contact an experienced life insurance agent.