You want to be able to afford an appropriate burial or funeral when you die. However, you might realize the extreme expenses associated with these procedures today. Thus, you might want to leave behind a financial cushion for your survivors in the form of final expense insurance.
Doing so can allow them less hassle and more options in settling affairs. What are some ways they can use coverage?
Final expense coverage can help with more than just funeral expenses. It’s often a nice bolus that can help protect your family from certain struggles after your passing.
Understanding Final Expense Insurance
For help paying death costs, countless Americans turn to final expense insurance. Final expense coverage looks a lot like life insurance in that manner. However, it is not the same thing as a life policy.
Life insurance policies usually offer significant sums for your survivors when you die. Final expense coverage, on the other hand, usually offers a much smaller supplement. Usually, these policies offer less than $30,000 in total. They are often more appropriate for those who want to leave a smaller payout for immediate expenses following their deaths.
Nevertheless, a few thousand dollars can go a long way after your death. So, many find these satisfactory alternatives to getting a full life insurance policy. Particularly after the expiry of a term life insurance policy, final expense coverage might prove an excellent alternative.
How Can You Use Funeral Coverage?
Many insurers call final expense insurance by another name—funeral insurance. That’s because most people use this coverage as a way to pay for funeral services. Funeral costs are often very expensive. Therefore, this coverage might help pay for:
- Transport fees
- Funeral home or church booking costs
- Costs of clergy or funeral home staff
- Cemetery plots
- Burial or cremation fees
- Headstones or markers
- Pallbearers
- Outstanding medical or hospice care bills
So, your policy can go a long way towards reducing the financial burden on your family. Lincoln Heritage estimates that a final expense policy might cost as low as $50 per month for a $10,000 policy. That’s a lot of cost management compared to paying for a $10,000 funeral in full.
Keep in mind, the earlier you get a final expense policy, the better. Insurers base premiums on risks. Unfortunately, the older you are, the higher your risk of death. Thus, the more likely you are to pay more for your policy. So, why wait to get started? Instead, talk to one of our agents about getting a final expense insurance policy now.