Final Expense Life Insurance

Final Expense Insurance is an insurance policy designated to pay your final expenses so they will not become a burden to surviving loved ones. Everyone who dies has final expenses that must be dealt with, and this final expense insurance policy demonstrates the love that you have for your family.

What’s The Advantage of Final Expense Insurance?

Unlike Term Life Insurance, Final Expense Insurance is guaranteed to stay in force over your lifetime as long as you pay your premium. The insurer cannot cancel your policy if you become sick or disabled, and your monthly premium will not change because of your age or health conditions.

The policy is Whole Life Insurance,  and it will build cash value over time that you can access for any reason. You can take a loan against the cash value, and any outstanding loan will simply be deducted from the death benefit paid to your beneficiaries.

It is guaranteed that all of us will die at one time or another, and it makes great financial sense that we insure for your final expenses with a policy that will be guaranteed to be in force when we need it. Like all life insurance, Final Expense Life Insurance is paid tax free and avoids probate.

What are Final Expenses?

When people die, there are typical expenses that must be paid by surviving loved ones. These expenses include the costs of a funeral, a burial plot, a head stone, medical or nursing home expenses, and various debts that can legally be charged against the insured’s estate.

According to the National Funeral Director Association, the cost of a moderately priced funeral has increased by over 29 percent from 2004 to 2014 to more than $10,000, and is expected to increase every year going forward. Although cremation has gained in popularity, the costs have risen considerably as well.

There are other final expenses that can be passed on to loved ones, such as time in a nursing facility or hospice care. Personal debt is not typically passed on to surviving loved ones, but the creditors are likely to file a claim against the estate.

Why Purchase Final Expense Insurance?

Knowing that surviving loved ones will accept responsibility for your burial and funeral expenses, it makes sense to plan and pay for them in advance. The last thing you’ll want is for your family and friends to have to pay for your funeral while they are grieving.

Many funeral homes offer pre-need saving plans that allow you to pay pre-arranged pricing directly to the funeral home, but in most cases these plans are not guaranteed like final expense insurance. Additional costs could still be passed on to your family.

For those of you who believe your church will bare the expense of your funeral, you should consider their financial priorities. Most churches are focusing on their various ministries while trying to keep their doors open. It’s doubtful that church or family members will want to pay (or have the means to pay) for any remaining financial liabilities as well.

With very affordable Final Expense Insurance, you can arrange to have funds sent directly to your beneficiary, the death benefit is non-taxable and is not subject to probate. Most insurance companies also offer a “guaranteed issue” policy for those who have put off making these arrangements or who have health issues that would prevent them from qualifying for traditional life insurance.

When Should I Buy Final Expense Insurance?

The best answer is NOW. Life insurance rates are predicated on two major factors; age and health. The longer you wait to start your policy, the more it will cost. The chances are very good that as you age, you may develop health conditions that will have a substantial impact on your insurance rates.

The typical rate for a 55-year-old for a $20,000 policy would cost about $91 per month. If that same person were to apply for the same coverage at age 70, the policy would end up costing about $174 per month which represents an additional cost of $1248 per year. We should also consider that a 55-year-old is likely to be healthier than a 70-year-old.

The bottom line is that if you do not currently have life insurance to cover your final expenses, you should not wait, you should buy it now!