10 Reasons to Buy Final Expense Insurance

End of life planning doesn’t have to break the bank. Plan for just the essentials with final expense insurance.

If you’ve begun retirement and end of life planning, then you know that there is no such thing as a simple funeral.

It’s not something that you want to put off planning for until the end- or worse, have no plan at all! When you want to keep things basic, and just prepare for the essentials, final expense insurance is your best choice.

What is Final Expense Life Insurance?

Final expense insurance is designed to cover medical bills and burial expenses. 

It is slightly different from burial insurance, which pays strictly for funeral and final expenses, while final expense insurance is paid out to the beneficiaries, who can then decide how to spend the money.

Unlike term and whole life insurance policies, final expense life insurance does not leave your family and loved ones with a death benefit to support them after you pass away.

Rather than replacing income, final expense life insurance will protect your family members from the burden of footing the bill for all of your funeral expenses.

There are many benefits to purchasing final expense life insurance. 

Top 10 Reasons to Buy Final Expense Life Insurance

1. The Average American Funeral Costs Roughly $10,000

You may have a detailed vision of how you’d like your funeral or burial to be, or might not care about the arrangements one way or another. No matter what your attitude is on the matter, the inescapable fact is that any type of funeral that is planned for you will be expensive.

The Bureau of Labor Statistics reports that over the past 30 years the price of funerals in the United States has risen almost twice as fast as all other prices on consumer items. The average cost of a funeral in America today is $10,000- imagine the cost years from now if that data trend continues!

The table below projects the average cost of funeral over the next 15 years.

Year Funeral Cost
2018 $8,563
2020 $10,929
2025 $13,948
2030 $17,802

Final expense life expense insurance is concerned specifically with after-life preparedness. Not all life insurance policies address the many costs family members inherit when preparing for a funeral and burial.

Many typical funeral costs like transportation, grave liners, or flowers, are not even factored into the cost analysis data currently available on funerals. A final expense policy can help you prepare for and cover these costs so that your family won’t be burdened.

2. Not Many People Have That Type of Money on Hand

Data from the Federal Reserve’s Survey of Consumer Finances reports that the average American’s savings account has about $5,000 in it. However, those in the 35-and-under age group typically have $1,000 or less! Consider your family members that will survive you. Would it wipe out their savings and then some to cover funeral expenses?

Not all life insurance policies address the various costs family members inherit when preparing for a funeral and burial. If you are not looking for a cash value, or living benefits that other whole life insurance policies provide, then final expense insurance is what you need.

Many typical funeral costs like transportation, grave liners, or flowers, are not even factored into the cost analysis data currently available on funerals. A final expense policy can help you prepare for and cover these costs so that your family won’t be burdened.

3. It’s More Affordable Than Other Insurance Policies

Maybe you’ve been shopping around, considering different life insurance policies, and have determined that term and whole life insurance are too expensive for your needs.

Final expense life insurance is a very affordable. The value of your policy is aligned to the expense of your planned funeral. The policy is strictly used to cover funeral costs, so the coverage amount is usually much smaller than term and whole life policies.

Typically, people insure themselves from anywhere between $10,000 – $20,000. This makes final expense policy premiums low and more affordable than larger policies.

4. Limited Dependents

Do you have limited to no people relying on your income? If so, term and whole life insurance is overkill. If you don’t need to leave a death benefit or cash value, you can skip term and whole life insurance altogether.

When no one is relying on your income, don’t worry about replacing it. Purchase final expense life insurance simply for funeral and burial expenses.

5. No Medical Exam Required

In the life insurance buying process there are multiple parties involved. It can take anywhere from 2 weeks to a couple months from start to finish!

When all you want is to cover basic end-of-life expenses, this seems like a serious hassle, especially when you’re worried about passing a medical exam. If you’ve lost your patience with the life insurance approval process, good news- there’s a better way.

Final expense life insurance is known for its easy qualification. Many final expense policies won’t even need you to undergo a medical exam to qualify because the coverage amount is low.

In most cases, you’ll be asked to answer a few health questions on the life insurance application, and then your policy can be approved.

6. You Decide How Long You Want to pay Your Premium

If you are a senior on a fixed-income or budget, final expense life insurance is ideal because it is affordable and comes with options.

You can choose a whole life insurance option or pay for a certain amount of time. Normally, a final expense policy is a form of permanent life insurance.

7. More Flexible Than a Pre-paid Funeral

Can you pre-pay for your funeral?

Yes, but that approach has its drawbacks. You work under strict state guidelines with a funeral director to personalize plans for your funeral, then make pre-payments towards that plan.

The downside to this is that you may not get to lock in a fixed rate for your funeral and your family could be caught off guard by an up charge after your death. Detailed records and documentation of pre-payments will be needed so that your family will know what you did.

What if you move or your funeral arrangements change? With a pre-paid funeral plan, there’s no guarantee that you and your family will get that money back.

Even worse, the funeral parlor could go out of business and you may lose that money entirely.

Final expense insurance provides your surviving relatives with a payout they can spend anywhere. You have less control, but your family has more flexibility.

8. Get a Fixed Rate That Won’t Expire

Price is key. A final expense policy should be the only life insurance policy you ever need to buy, and you want to make sure that you keep your policy valid by always paying your monthly premiums on time. This starts with enrolling in a policy that is on your budget with a rate you can comfortably afford.

If you begin this process in your forties or fifties, when you are in good health you are likely to have the opportunity to lock in a great fixed rate.

Most life insurance companies will insure individuals in their senior years, although 85 is the maximum age limit. Rates will be higher when you enroll later in life.

Because final expense life insurance is almost always a form permanent life insurance, it won’t expire and you don’t have to worry about any type of renewal.

9. Cover Remaining Debts After Death

Funeral expenses are a certain part of end-of-life planning, but there are also uncertain expenses that come up. Medical bills and credit card debt are examples of other financial burdens that you wouldn’t want to leave behind for your family to sort out.

In all honesty, losing a loved one is an emotional roller coaster for the family involved. By planning to take care of your debt, you can help avoid family drama and added stress during what will already be a very difficult time.

10. Peace of Mind

No one wants to spend time thinking about death or planning their end-of-life affairs. The whole thing can make you feel riddled with anxiety! But it is only fear of the unknown that makes us anxious.

When you purchase final expense life insurance, you put a plan in place to take care your family. They will not be financially burdened at the time of your death. Your funeral can be a celebration of life rather than a family struggle to organize your end-of-life affairs.

You can enjoy your later years of life with peace of mind, knowing that all is in order and taken care of.

Is Final Expense Life Insurance for Me?

Burial Insurance for Seniors

If you are in your forties or fifties, this is an excellent time to consider purchasing final expense life insurance.

You are in a prime position to take advantage of low premium rates that will be fixed for the lifetime of your policy.

With no medical exam required and simple application process you’ll qualify easily and get insured quickly.

If you are a senior on a fixed income, or with no dependents, final expense life insurance is your best life insurance option.

There’s no reason to take out a larger policy that you can’t afford when no one is relying on your income. Instead, the smart financial choice is to invest in a final expense life insurance policy that fits your budget.

You can customize the value of the policy to meet only your needs, nothing extra!

One thing is certain: your funeral isn’t going to pay for itself. Although it’s difficult to think about, make your end-of-life preparations now. Everyone benefits from the peace of mind that comes with knowing that their affairs are in order.

Final expense life insurance is the best investment you can make in being proactive and keeping the financial burden of your passing from falling to your family.

Finding the Best Final Expense Policy

When looking for the best burial or funeral expense life insurance policy, it is important to speak with an expert in order to not only compare the best final expense rates, but the best policies.

Our independent life insurance agents work with over 20 of the best final expense and burial insurance companies on the market.  We get to understand you and your family’s financial situaiton and cvoerage needs to find the right policy for you.

Call today for a free consultation, or compare final expense insurance rates instantly using our quoteing engine.

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