A Final expense insurance insurance policy is purchased with the intention of using the payout to pay for your funeral or any other death-related costs. This type of policy is often called a Final Insurance policy or a burial insurance policy.
It is simply a financial insurance product that is designed to help pay for your funeral. When someone buys final expense insurance, it means that they want to be sure their funeral and arrangements will be paid for by their loved ones. This is great future financial help to your loved ones, as the children are often left with the burden of paying funeral costs.
Today the average funeral with only basic selections can cost up to $8000. Your family can always save money on your funeral by shopping around. For example, you can get a low-end casket from Costco for less than $1,000, while a casket made from precious metals can cost more than $5,000. A typical fancy funeral can vary in price costing you upwards of $20000 easily if you like all the fanfare. Keep in mind that the death benefit you choose for your final expense policy should be in line with your anticipated funeral cost. If want the fancy funeral upgrade such as probate cost, household expenses (mortgage, utilities), or medical bills, you’ll will need to consider a death benefit on the higher end. Other kinds of permanent life insurance, such as whole life, tend to have death benefits on the higher end.
You can talk with an agent at Senior Care Life to make sure that your death benefit matches the anticipated costs of your funeral and any anticipated end of life cost. These could include embalming process, the casket, the funeral home fees, the viewing, the transportation of your body to the cemetery, your cemetery plot, flower arrangements, and more. You are making sure everything you can think of is fulled covered. This could also include leaving a small inheritance for your loved ones. Most final expense insurance plans have a maximum benefit, and that’s usually around $25,000. We also have some carries for which you can get up to $40000 in final expense coverage.
As insurance agents when we talk about a final expense benefit, we’re talking about the death benefit, or the pay out of your policy upon your death. It’s not a pretty thing to talk about but death is a future reality for all of us. Yes you can escape taxes but you cannot escape death in this current reality. The insurance company does not stipulate how the death benefit is to be used. They just write a check in the full amount minus any borrowed cost and fees if you had borrowed funds from your cash value and not paid it back. So the death benefit can be used for any of your final costs, from probate to credit card debt to end-of-life medical bills.