Final expense insurance is meant to pay the costs of burying a person after his/her death. This is extremely popular among most seniors as it comes with an affordable price, comparatively fewer benefits sums, and coverage of all funeral costs. It is also termed burial insurance. Such costs include not only funeral expenses but medical bills, as well.
The Basics of Burial Insurance
This type of insurance is not the same as life insurance which is all about leaving sufficient monetary support for your family after your demise. The premium you pay for life insurance depends on how much you earn, while with burial insurance, the value of the policy is in proportion to the cost of the type of funeral you desire.
The Cost of Final Insurance
The precise cost of final insurance depends on the person’s age. However, the older one gets, the higher the premiums. This is largely due to the fact that insurance companies are at increased risk when insuring an older person, when he/she is considered nearer to death, in a statistical sense. In other words, if you avail of burial insurance when you are 40, you only need to pay much less every month than waiting to buy it when you are 70.
Who Needs Burial Insurance?
The answer to this question is that it can differ from one person to another. For those who have whole life insurance, the policy will help their families bear the cost of the burial expenses. But, in case you have only term insurance and happen to outlive the term of the policy, things will be different. In such a case, it is better for you to go for carriers selling final expense insurance.
This type of insurance will help you cover various costs. It lets your loved ones have enough money to pay for the expenses that they need to pay, apart from the burial costs. These expenses include all final costs, like medical bills, legal or probate fees, as well as any other expenses that other types of policies cannot cover.
According to NFDA, the National Funeral Directors Association, the mean expenses of a funeral tend to be about $9,000. Most survivors of deceased persons have no means to pay for such expenses, and so have to bear the financial burden all by themselves.
When a loved one dies, it is very stressful to plan for the funeral and juggle the financial obligations that the deceased has left behind at a time of intense grief. Oftentimes, your spouse and offspring also have to go through the ensuing trauma, which can be unbearable. So for seniors final insurance is a very good and kindly insurance answer for protecting their loved ones from ever-increasing funeral expenses. The good news is that it’s easy to qualify for this type of insurance, as it is very much issue based on a few answers to questions concerning health. In most cases, you can even do away with a medical exam.