Understanding Final Expense Life Insurance

Final expense life insurance is a type of whole life insurance plan that is meant to provide coverage for burial costs and other expenses associated with end of life ceremonies. It is mostly targeted at seniors, between the ages of 50 and 85, who do not want their loved ones to bear their funeral costs. Generally, final expense life insurance is designed for people who have no dependents relying on their income.

What is the value of a final expense life insurance?

The value of most final expense life insurance ranges from $5000 to $50,000 depending on the life insurance company.

How do I apply for it?

Applying for final expense life insurance is one of the easiest in the life insurance world. It does not involve any medical examination. You are only required to fill out a life insurance application. However, this application will ask for details concerning your health.

How much will my final expense life insurance cost?

The cost of your funeral expense life insurance will depend on your health, age, gender, medical history and the value of the death benefit you choose. For instance, a 50-year-old person in good health would pay lower premiums than a 70-year-old individual with a health condition. However, no matter the cost, your premiums will stay at the same amount throughout your lifetime.

How much coverage should I buy?

There are several factors you should consider before getting a final expense life insurance plan and they are given as follows:

  • Debts: If you were to die now, your family would be responsible for repaying all your debts. Therefore, ensure that your final expense life policy is enough to pay off all your bills without putting any strain on your family‚Äôs finances.
  • Funeral costs: You could decide to be buried, cremated or have an extravagant burial party. Whichever ceremony you choose, make sure your final expense life insurance can adequately cover the expenses.