Final Expense
FINAL EXPENSE
Life insurance is a gift to the one you love and serves the purpose of planning for the inevitable. It allows you to make sure your loved ones are taken care of when you pass away with funds to help cover funeral and personal expenses when you pass. Final Expense insurance is designed for this purpose.
How is Final Expense Different from Other Types of Life Insurance
Final Expense insurance is a form of whole life insurance policy and are usually offered Guaranteed Issue. This means they are easy to qualify with little or no health questions.
The policy benefit is smaller compared to other types of Life insurance plans, because they are designed to last your entire life and help pay for the Final Expenses for your funeral and passing.
Many Final Expense have death benefits that range between $2,000 up to $50,000. The premiums are lower the younger you are when you purchase your plan. Women have lower premiums than men because women have a longer life expectancy. If a 50-year-old woman may purchase a $10,000 death benefit, with premiums approximately $30 per month and a 50-year old man may purchased the same policy and pay $60 per month. If the same individuals purchased policies at 80-years old, the woman’s premium may be $95 per month and the man’s would be $130 per month.
Why Final Expense
Final expense insurance is usually purchased with the intent to cover funeral costs. This is part of why the death benefit is lower compared to other types of life insurance.
The average funeral can cost anywhere between $7,000 and $12,000. This is not a flat rate, but rather a combination of individual costs. How much your funeral costs depend on arrangements:
- Burial or cremation
- Type of casket
- Urn
- Burial plot
- Grave marker
Other options include burial or cremation with no funeral expense. Direct burials are typically from $1,000 – $4,000, and direct cremations are generally between $1,800 to $3,500.
Additional benefits are generally used to cover any of your personal debts.