Final Expense Insurance is another type of life insurance. It is mostly used to cover ones final expenses (like BURIAL COSTS) after one passes away. Plans range from $2,500 to $50,000 in coverage. You can use the plan for almost anything such as burial costs, bill payments, mortgage, other insurances, or other needs. Unlike standard Life Insurance, Final Expense Insurance will pay immediately. Standard Life Insurance can often take many months before the beneficiary gets their payout. Final Expense insurance can take care of paying the burial costs and will send you a check if any amount is remaining. This can be a great convenience when ones loved ones are grieving.
When thinking and PLANNING FOR OUR PASSING from this life, we typically have three options:
1. Do nothing and let the time go by and have someone else take care of it.
2. Have some type of life insurance.
3. Buy a pre-arranged burial plan from a funeral home.
Option 1 is not a good option in most peoples mind. Options 2 and 3 are more proactive and better choices. A person needs to DECIDE for themselves which one would be the best. If you chose Option 3 and go down to a funeral home, you will be able to buy your entire funeral and burial in advance. However, this can be costly. Most funerals can be more than $10,000. If you don’t have the money up front, the funeral home will typically let you to make payments. If you pass away shortly after purchasing this plan, your loved ones would still be liable to pay off the remaining bill.
Option 2 is the best pick. One can have the funeral and burial done at the funeral home of their choice. The costs remain the same however, with Final Expense Life Insurance you can make small scheduled payments while you are alive. This option could save a person many thousands of dollars if you had an UNTIMELY DEATH.
Facts About Final Expense Life Insurance
Final expense life insurance is simple since it just guarantees that the policy holder will not burden his family at their death. It provides for a nice funeral, hospital expenses, and nice burial services. It is not the kind of insurance that will not pay your beneficiary the amount of death benefit that you collect through your entire life (like that found in a permanent life insurance policy or a term life insurance).
Most insurance companies’ only requirements are that a person be a certain age and that they pay a certain amount of money so they will be covered at the time of their death. In a final expense life insurance policies most companies do not require that person passes an examination or that they are in perfect health condition. This is because they are not risking anything since they are not insuring people for a certain amount of time. They are just collecting payments or premiums from the policy holders so they will have a nice funeral and burial expenses.