If your parents are growing older, you may be interested in preparing for their end-of-life expenses with a final expense insurance policy. Final expense functions much like traditional life insurance, except these plans are easier to qualify for and offer less benefits than other plans. To learn more about purchasing final expense insurance for your aging parents, continue reading.
What Is Final Expense Insurance
Final expense insurance is a type of permanent life insurance that is designed to pay for end-of-life expenses, such as funerals and burials or cremations. The difference between final expense insurance and traditional life insurance is that final expense insurance is much easier to qualify for if you have adverse health conditions. The application process for final expense doesn’t require a medical exam, meaning some aspects of your health condition may not be exposed to the insurer.
How Does Final Expense Insurance Work?
Final expense insurance plans work similarly to any traditional life insurance plan; you pay your premiums and when the insured person passes away, a moderate death benefit payment is made to the beneficiaries. Your beneficiaries can be anyone, but if you are purchasing a plan for your parents, you may choose to pick yourself for this role. The money provided when a death benefit is paid out can be used for anything, but most people use the money to pay for expenses related to a person’s death.
Can You Buy Final Expense For Someone Else?
Purchasing a final expense policy for someone else is only possible if there is an insurable interest. An insurable interest is defined by situations wherein a person’s death may result in a financial loss for you. This means that if you are going to be responsible for paying your parents end-of-life expenses when they pass, you could realistically have an insurable interest in them. Therefore, you have the opportunity to buy final expense insurance for your parents.
Keep in mind that your parents must be aware and provide you with their consent. Your parents will also need to submit their personal information to the underwriting process. This allows the insurer to determine appropriate rates for coverage.
How Much Does Final Expense Cost?
Final expense insurance is relatively inexpensive, though exact costs depend on the insured person’s health condition, age, sex and the coverage amount they desire. In general, expect final expense policies to fall in the range of $30-$70 per month. This is quite affordable, therefore it makes sense to purchase final expense to protect your family from unexpected end-of-life costs.
The Preferred Final Expense Agents
The Memorial Insurance Group has worked with thousands of insurance clients who were searching for final expense policies in their area. If you need to find a final expense plan to cover your parents, we can help! Contact us today to get started with a free quote on coverage.
To get started, submit the contact form located on this page.