Final expense insurance is right for seniors.

Is Final Expense Insurance Right For You?

Planning for the future is important.  Purchasing insurance means making the decision to be prepared for multiple situations.  Final expense is one of the best options when looking at end-of-life insurance.  Final expense policies are intended for seniors and there are typically health qualifications that must be met in order to enroll.  While this type of policy is intended to cover funeral and burial costs, the death benefit can be spent in other ways.

If you’re wondering what final expense insurance can offer, know you’re not alone.  

Final expense

Final expense insurance is an excellent option for most.  There are a few things that set this type of insurance aside from other options, so let’s go over those determinants and discuss whether this is the right decision for you.

The death benefit paid by final expense policies can be used on a variety of end-of-life costs.  The wide range of things the payment can be used for is one of the reasons why so many consider final expense.  Final expense is intended to take financial pressure off of family and loved ones after someone passes away.  While funeral and burial costs can be high, there are other things that can add to the price family might need to pay.

Individuals can leave behind debt after they pass away.  Student loans, credit card debt and medical bills can all have a toll on family.  A final expense death benefit can be used to pay off remaining debt.  This means that while final expense can be used to cover typical end-of-life costs, such as funeral arrangements, it can also be used to cover unforeseen debt.

Life is unpredictable.  Even if you don’t think you’ll leave behind any debt, there are many possibilities that could come into play.  If you’re worried that your family might become responsible for some of your unpaid bills, consider a final expense policy as a way of preventing that.  

Unexpected medical bills put financial strain on a family.  While you may not anticipate debt, final expense insurance can help in the case that you accumulate it.  End-of-life care can be expensive and require large financial capability.  If you’re wanting to prepare for the worst and ensure your family is taken care of, consider purchasing a final expense policy.

What can the death benefit cover?

We’ve discussed how the death benefit can cover debt, but there are many other things that it can be put towards.  Cremation is expensive and burial can be even more costly.  Aside from donating your body to science, which results in a free cremation, the majority of the options will require financial input.  A final expense policy is the best way to be sure that money is put aside in the case that your family isn’t able to cover those costs.  Even better, a final expense policy will ensure your family doesn’t have to cover those costs.

Who shouldn’t consider a final expense policy?

The majority of people should consider a final expense policy.  Those who can’t afford it are among some of the only people that a final expense policy wouldn’t benefit.  Anyone who has a family should think about the implications their passing could have and whether or not a final expense policy would provide them with peace of mind.

While final expense policies do require financial resources, they’re very affordable compared to other insurance options.  This type of policy is accessible for most people, so don’t hesitate to reach out to an insurance agent if you’re interested in enrolling in a final expense policy.

If you have had any serious medical conditions within the past few years, it may be difficult for you to get final expense insurance.  A heart condition or cancer may prevent you from enrolling with a certain provider, so research the different options in your area and see what their different qualifications are.  

Even if you have a health condition, there still may be options.  Don’t be afraid to make appointments with different insurance agents and ask them what they have to offer.  You may be able to pay a higher premium and still enroll in a final expense policy.

There are different types of final expense policies, with each being a good option for many.  While researching, take note of the different quotes.  Your financial situation can greatly impact the policy that you choose and may be the determining factor.  If you’re in good health then you may be eligible for lower premiums.  The price specifics will vary depending on the provider and the individual, but final expense policies are typically very affordable.

Who should you choose as a beneficiary?

Choosing a beneficiary can be complicated and difficult.  Picking just one person may be challenging, or it can also be difficult to find someone that you trust enough.  Minors should not be chosen as the beneficiary, so it’s best to pick an adult that you trust.  In most cases, the beneficiary is someone that would be impacted the most financially by your passing.

Discussing how you would like the death benefit to be spent is an important part in informing the beneficiary of their role.  While there may be costs incurred that you can’t anticipate, you should still provide a general outline of how you would like the death benefit to be spent.  Because final expense policies don’t have any death benefit guidelines, the beneficiary can do whatever they wish with it.

Most people select their spouse or child to be their beneficiary.  However, it doesn’t have to be someone within your family and can instead be someone else you’re close to.  The important part of the selection process is that they understand the responsibility and you trust them with it.

If you’re not sure who to select as a beneficiary or don’t know if final expense is right for you, give us a call.  We’re here to provide clarity and make sure you get answers to all your insurance questions.