Final expense insurance is a type of life insurance. It’s intended to cover end-of-life expenses, though there aren’t any stipulations for how the beneficiary can spend the death benefit. Final expense policies are typically smaller than other life insurance options, which means they’re a less expensive option.
Planning for the future
When planning for the future, it’s essential to think about your different insurance options. Making the correct insurance choices in the present can greatly benefit you in the future, so take time to think about all your different options.
If you’re financially responsible for your family and would want to provide for them in the event of your passing, then a final expense policy is most likely not the right choice for you. If this is the case, you may want to consider a whole or term life insurance policy. Final expense isn’t intended to replace significant income because the death benefit is significantly smaller than other life insurance options.
Many people use the final expense death benefit to cover end-of-life costs, such as credit card debt or medical bills. This type of policy is also typically used to cover funeral and burial expenses.
Most people don’t realize how expensive a burial and/or funeral can be. Depending on how elaborate the funeral arrangements are, the bills can be thousands of dollars and present a significant financial burden. If you’re planning for your funeral and have a budget in mind, then you can select a final expense policy that will fit your funeral budget. This is an excellent way to make sure that there’s money set aside and your loved ones don’t have to pay the entirety of the funeral costs.
Similar to what was just mentioned, if you’re planning on leaving behind any costs, such as a credit card or a car loan, then a final expense policy is a great way to ensure your loved ones don’t become financially overwhelmed. Purchasing a final expense policy is all about planning for the future and making sure that you’re making the right preparations.
Making the right insurance decisions
If you’re curious about your different insurance options, we’re here to help you sort through them and make sure that you’re selecting the right policy for your specific situation. Reach out to us today to learn more!