All kinds of insurance policies hold equivalent importance, and the most suitable one depends upon an individual’s needs. Over recent years, the one type of life insurance that a growing number of people are seriously considering is final expense life insurance. To put simply, this kind of insurance is designed and limited to covering funeral expenses and does not carry any other additional benefits. Unlike life insurance that financially protects the beneficiaries after the policyholder’s death, this insurance solely covers the cost incurred for the funeral and burial of the policyholder.
In-depth understanding of final expense life insurance
Funeral and burial expenses can add up to an exorbitant cost that can burden the near ones of the deceased. On average, the cost of a traditional funeral can range anywhere between $6,000 and $12,000, depending on the kind of arrangements made. Final expense life insurance reduces the financial stress that beneficiaries must undergo in times of grief, and such a type of policy helps to pay up for the expenses involved in the final rights of the policyholder.
Final expense life insurance is offered by a wide number of insurance companies, and it is much more affordable than traditional life insurance. This is because funeral and burial expenses run high but do not usually have as much payout as regular life insurance.
The process of claiming a final expense life insurance is straightforward, wherein the loved ones must file a claim upon the death of the policyholder. The lump sum is then granted to the beneficiary as listed on the life insurance policy, and this sum can then be used to pay up for the final rites expenses.
Who must opt for final expense life insurance?
For some, life insurance premiums may be unaffordable, and this is when it is advisable to opt for final expense life insurance policy. In some cases, pre-existing medical conditions can also come to be a hindrance in the way of getting traditional life insurance, and one can opt for final expense life insurance at such times.
It is essential to determine whether final expense life insurance is right for one’s financial situation and that of the loved ones. The first step lies in understanding who will be financially affected in the case of one’s own death. For an individual who has grown children who are financially independent, this kind of insurance can serve well. Also, it is important to take into consideration the need of the spouse when making the decision. Opting for final expense instead of traditional life insurance is appropriate if the spouse is not dependent on the policyholder after their death. Apart from determining the degree of financial dependence of the loved ones, enough thought must go into understanding the value of the assets that will be left behind upon passing away. If there is enough inheritance that dependent surviving members are left with, a final expense life insurance is the best way to go.
Picking the right final expense life insurance
The process of picking a final expense life insurance should involve a lot of exploring for the most suitable option. It is advisable to look for this kind of insurance at the time of making the will as it will bring better clarity and aid in understanding the best option.
The funeral plans, as envisioned, must drive the type of policy that is picked and the amount offered as part of the policy payout. An individual who wishes to have a big traditional funeral ceremony should opt for a policy that generates a higher payout to accommodate the high cost.
Applying for final expense life insurance
As with every insurance policy, the applicant is required to fill out a form with final expense life insurance as well. Typically, the application can be anywhere from 2 pages to 10 pages long. Several details must be filled, including the applicant’s age, weight, blood group, family history, medical history, and more. Depending on the life insurance company, there may also be a medical exam and analysis.
It serves well to fill in online coverage forms and get a free quotation on the preferred plan as this will provide the applicant with a direct quote from the provider. While many policies are sold online over a call, there may be some kind of face-to-face interaction required.
This type of policy is great for any individual who wants to ensure minimized financial stress on their loved ones. It is best to discuss the most suitable options and get professional guidance and quotes from insurance agents of well-reputed final expense insurance companies like Gerber Life Insurance, Americo, United Home Life, Foresters, Assurity, and more. They can provide better guidance and help get the best kind of final expense life insurance for seniors.