What Can Final Expense Be Used For?

Final expense is a type of life insurance that many people choose to cover end-of-life costs. It’s a very common type of policy similar to other life insurance options. The difference between final expense and other insurance options is that final expense policies will have a much smaller death benefit. This is because final expense policies aren’t intended to provide a large amount of financial support.

Nonetheless, there are many different ways to use the death benefit, so let’s go over some of them.

How to Use the Death Benefit

The beneficiary of the policy will be in charge of spending the death benefit. There are no stipulations for how the death benefit can be spent when it comes to final expense. This means that the beneficiary has a large amount of freedom when it comes to spending the death benefit.

Funerals and burials typically take up a large portion of the death benefit. These can amount to thousands of dollars, so planning for those costs is important, and final expense is a great way to do that.

Many people use the final expense death benefit to pay for medical bills and other end-of-life costs. While these are some of the traditional costs, there are many other ways to spend the death benefit. Some beneficiaries will use the death benefit to pay for costs that the policyholder left behind. These costs could include credit card debt or other forms of debt. While a final expense death benefit could be used to cover some mortgage costs, they’re not intended to cover large costs. If you want a death benefit that could cover a mortgage or other hefty expenses, it’s best to consider other life insurance options.

Finding a Beneficiary

Choosing a beneficiary is extremely important. You should make sure that you find someone you trust. Making sure they know your wishes is important so they can spend the death benefit how you would want them to.

Many people will choose a family member or close friend to be a beneficiary. Regardless of who you choose, it would be best to meet with the beneficiary to discuss your final expense policy and their responsibilities. 

Is Final Expense Right for You?

Final expense is a great way to cover end-of-life costs. Funerals and burials can be expensive, and this type of policy is a great way to cover those costs. If you’re interested in learning more about final expense, feel free to give us a call.