Death can be an awkward topic, and discussing final expenses can intensify that discomfort. Many people want their life insurance to provide coverage for any funeral or burial expenses in order not to put the burden on their loved ones upon their death. However, other people want an exclusive plan that will cover the kind of burial they want.
So, is final expense insurance worth it? Here are some key factors to consider.
What Is Final Expense Insurance?
Final expense is a permanent life insurance policy that is directly paid upon the death of the insured to a family member in charge of the funeral arrangements, or other beneficiaries chosen by the policyholder. The insurance stays in force no matter how long the insured lives. Even people who have serious health issues or are advanced in age can get final expense coverage quickly.
What Final Expense Covers
Final expense insurance provides coverage for expenses directly related to the funeral ceremony, burial, and cremation if you want. That means the insurance also covers a cemetery plot, headstone purchase, or content for your ashes after cremation. If there is any money left after paying these expenses, your beneficiaries can use the death benefit for whatever they please.
However, to ensure the death benefit is used to pay for the expenses that you intended it for, you must choose a beneficiary you trust and discuss with them your wants and needs.
Is Final Expense Life Insurance Worth It?
If you are a senior and looking for a smaller insurance policy to just cover the cost of your funeral, final expense insurance can be the right solution. When you are deciding whether to purchase an insurance policy, consider whether you have enough money set aside to cover all the necessary funeral costs upon your death. You likely won’t want these kinds of costs to fall to your loved one. You may need final expense insurance if you don’t have this kind of spending ability.
The Memorial Insurance Group is here to help answer any question you may have about final expense insurance and finding the right policy for you. Give us a call today to get started.