No one likes to think about death. It’s an unfortunate inevitability though, and being prepared is essential. One way that many families prepare is with a life insurance policy. This type of plan provides financial security should something happen to you. While life insurance can be beneficial for younger families, it’s not always the best solution for seniors. Instead, seniors and their families may benefit better from a final expense insurance policy.
What is Final Expense Insurance?
Final expense insurance a type of life insurance policy. It is also referred to as burial insurance or funeral insurance. It’s specifically designed, however, to cover the costs of a funeral service and all other related costs such as a casket and burial or cremation. The policy can also be tailored to help pay for other end of life expenses, such as outstanding debts or end of life medical care.
In recent years final expense insurance has become very popular. Not only is it affordable but it is easy to get. Most people will not need a medical exam to get a policy.
It’s Easier for Seniors to Get
As you get older, life insurance policies become more difficult to obtain. Not only does your actual age make it more difficult, but older individuals are also more likely to suffer medical issues that then pose barriers to coverage. While final expense insurance generally does have a medical questionnaire, you don’t have to worry about a medical exam.
Because this type of insurance policy is easier to get the price per benefit amount will be higher. That’s why most policies are generally much smaller. You can get a more substantial policy benefit amount, but when you are in your senior years, it will cost significantly more.
It’s Very Affordable
When it comes to getting a term or permanent life insurance policy, your age (and your health) play a role in how much you pay. Typically, the older you are, the more you’ll pay. Final expense insurance policies are generally more affordable, and this is because these policies cover less. Traditional life insurance policies are designed to help your family pay for other costs, such as mortgage payments, car payments, and other financial obligations, on top of the cost of a funeral. They’re more geared toward younger individuals with dependent children and more significant financial responsibilities.
Final expense insurance, on the other hand, is designed only to pay for the costs associated with a funeral and other end of life expenses. In many cases, those who take out traditional life insurance policies do so for around ten times the amount of their annual salary. Most final expense insurance policies are for less than $50,000.
It Provides Peace of Mind for Your Family
Death, while inevitable, is a sad time. For many families, those left behind have to deal with the cost of a funeral on top of dealing with their grief. Funerals are expensive. On average, funerals cost between $7,000 and $10,000. If your family isn’t prepared, this cost can be tough to deal with.
A final expense insurance policy is an excellent way for seniors to provide their families with peace of mind. With the cost of the funeral covered, the family has one less thing to grapple with. Instead, they can focus on giving their loved one the burial they deserve and take the time to process the loss without having to worry about how to pay for everything.
Tips for Getting a Good Rate
Shopping around – Finding the best price is important. We make this process simple because once you use our quote engine, we find the rates of all the major insurance companies. This way it gives you an easy way to find the lowest price or if you prefer the companies with the highest ratings.
Don’t overbuy – Sure you may want to pad your policy by a few thousand dollars but don’t get crazy here. If you get a policy with a high benefit amount than you need, then it’s a waste of money.
Check the reviews – sometimes getting a good rate comes at a cost. Be sure to read the reviews of all the companies you are considering. Some insurance companies are just better than others whether it be better customer service or timely payouts.
Final expense insurance provides an affordable way for seniors to give some financial relief for their families following their death. Just like shopping for a life insurance policy, it’s vital that you shop around. There are plenty of insurance companies that provide final expense insurance, and the rates may vary from one company to the next for the same type of coverage. Doing some research before buying will help to ensure that you get the best policy for the best price.