Do I Need Final Expense Insurance if I Already Have Life Insurance?

Many people are confused about the difference between traditional life insurance and final expense insurance. In particular, you may be wondering if you need final expense insurance if you already have life insurance. While the short answer is that you do not need final expense insurance, if you already have life insurance, there are certain things you should know about your life insurance policy to confirm that you are covered. 

Type of Life Insurance Policy: Term vs. Permanent

You may not be covered at the end of your life by your life insurance, depending on the type of plan you selected. There are two major types of life insurance plans: term policies and permanent policies.

A term policy is a kind of plan designed to provide you with protection for a certain period of time. You are only covered for a specific period of time or term. After that time expires, you are no longer covered, and your family does not receive that amount as a death benefit.

In contrast, a permanent policy provides coverage for your entire life. This option is more expensive than a term policy, but it is the only way to guarantee that you are covered at the end of your life by traditional life insurance.

This means that your life insurance policy may not cover you for end-of-life expenses if you have a term policy that ends before your death.

What to Do if You Are Not Sure About Coverage

If you are not sure whether or not you are covered, you should read over your policy. You should determine whether it is a term policy or a permanent policy and if it has any restrictions on end-of-life benefits. If you used an insurance agent to obtain the policy, you can contact your agent to discuss your policy details. It is best to understand your policy so that you can plan for your family or loved ones’ financial future. 

Final Expense Insurance Policies

If you already have a life insurance policy, a final expense option does not necessarily help. A final expense policy is a great option for someone who cannot afford traditional life insurance or who does not qualify. Technically, this policy would, in fact, cover end-of-life expenses if you had a term life insurance policy that expired. However, if you can qualify for and afford life insurance, it is better to get traditional life insurance with a larger, permanent policy.  

Key Takeaways

Life insurance and final expense insurance can be confusing to differentiate. In short, final expense insurance is a type of life insurance policy that is more affordable and easier to qualify for. If you already have life insurance, you do not need to purchase a final expense policy. However, be aware that if you have a term policy, you may not be covered at the end of your life if the policy expires. 

If you need help deciding on an insurance plan, we can help you find the lowest quotes or the highest coverage available in your area.