While we all face death sooner or later, the cost of dying is not necessarily cheap. According to NFDA, families paid an average of $7,848 for a funeral with burial in 2021. However, this amount doesn’t cover the cost of a headstone, vault, or opening/closing of the ground, which can easily cost you or your loved ones thousands of dollars. Since the bill for an individual’s final expenses cannot be avoided, many people decide to purchase a life insurance policy.
On the other hand, some people opt for a more specific type of life insurance: final expense insurance. This can be ideal for people who need a small coverage that pays for their final expenses when they pass. However, some people do not see the need to purchase final expense insurance. Let’s take a look at the people who truly need final expense.
Seniors and Older Adults
If you are already retired or nearing retirement and looking for a way to cover funeral costs, final expense insurance is a good fit for you. It is a type of permanent insurance that doesn’t expire as long as you pay your premiums. This insurance is popular with seniors and older adults because of its affordable price, smaller amounts of benefit, and emphasis on covering funeral and burial costs.
People with Serious Health Conditions
Final expense insurance is a good option once you develop health problems. The payout from a final expense insurance policy doesn’t have any strings attached, so your loved ones can use it however it’s needed. The insurance works best for people with serious health conditions that don’t qualify for any other type of insurance. Health conditions that make this insurance a more suitable coverage option include illnesses such as HIV, cancer, or Parkinson’s disease.
Final expense is quick to issue with no health questions, medical exam, or any other health requirements. Since the risk is higher, final expense insurance generally offers a lower amount of coverage.
Individuals Who Earn Low or No Income/Assets
Since the coverage amounts for final expenses are very small, it offers some of the lowest premiums, especially for seniors. For instance, a $10,000 final expense insurance policy costs about $50 per month on average, depending on your health, age, and more. So, if you don’t have enough to cover your burial and your family wouldn’t be able to pay after your passing, final expense insurance is the perfect fit.
Want to learn more about final expense insurance and who is the right fit? Contact The Memorial Insurance Group to speak with a licensed expert so as to get personalized guidance.