Final expense, also known as funeral or burial insurance, is a permanent life insurance product that covers your funeral, burial, leftover medical bills, and other final expenses. Whoever you leave as a beneficiary will receive a death benefit after your passing to help pay these expenses. To determine if final expense insurance is right for you, you need to consider several factors, such as:
- Your age and current state of health
- Your possible future state of health
- Your family’s financial standing
- Bills that will become your loved ones’ responsibility after you have passed
Ultimately, the choice of purchasing a final expense option is up to you. However, if your family would not be financially stable enough to pay for your burial costs, loans, bills, or if they would not have any income after your passing, it would be in your best interest to consider final expense insurance.
What do final expense policies guarantee?
A final expense policy has several guarantees, such as:
- Guaranteed to last a lifetime
- The company cannot cancel the policy as long as you make your payments
- Your payments will not go up if you become ill or hospitalized
- Your policy builds cash value
- You receive coverage quickly
- The rates are affordable
Unlike other life insurance policies, final expense policies do not require in-depth research into your health, making the coverage be simplified issue life insurance. Simplified issue life insurance does not require a medical exam, but you will need to answer a health questionnaire on the application.
Final expense policies also offer an easy application process and fast approval (usually getting immediate coverage after making your first payment).
Before choosing a policy, make sure to review all your options as not all policies are the same. Some policies have added features, such as support benefits or child riders.
How much does final expense cost?
The cost of final expense depends on certain factors:
- Health status
- Amount of Coverage
- And the insurance company you choose
If you are older with poor health, you could pay more for monthly premiums. Men also tend to pay higher premium rates than women due to their shorter average life expectancy.
For many final expense policies, the premiums never increase. However, with a final expense policy, you can borrow money against the policy’s cash value, which can decrease the death benefit for your beneficiaries.
If you are trying to decide if a final expense policy is right for you, BTW Insurance can help. We work with multiple companies and want to find you the best possible option based on your health and situation. There are options available for almost any budget, especially those with fixed income. Give us a call at 888-907-0174 to have all your final expense questions answered.