Understanding the Policy

Pay for the funeral expenses out of your savings and ease the burden on your loved ones.

Once you are over and done with your obligations in the later years of your life, financial obligations like a life insurance policy may not be needed anymore. Paying for your death and funeral costs is the only expense you might need to worry about.

 Final expense life insurance policy also called the burial insurance is the specific policy in which the death benefit is used to pay for the burial expenses or medical expenses in the end-of-life situation. The death benefit is claimed by the beneficiaries and can be used in any other purpose as well. However, the coverage is much lower than the term life insurance policy.

 

Policy Highlights

Pros

  • Permanent life insurance with a tax-free death benefit
  • Affordable choice with fixed premiums
  • Best for people with an unhealthy state of health
  • No medical exam required
  • Flexible coverage up to $40,000

Cons

  • More expensive than term life insurance
  • If you are healthy, you might need to save more rather than paying for the policy

Duration

  • Permanent life insurance for the lifetime of the holder

 

Contact us to learn more about Final Expense insurance and whether it is right for you!

Cost of Final Expense Insurance

The final expense insurance is usually availed by the older people therefore its costs are almost as much as the Term Life Insurance Policy i.e. around $29 to $84 per month. However, the coverage it offers is much lesser around $5000 to $10,000 only depending upon the state of health. This makes final expense insurance an expensive choice.

Expense Insurance

  • Guaranteed issue policies: such policies cover the high-risk individuals but make sure that you do not suffer from a terminal illness before buying this policy. This is a more expensive type of policy with lower coverage amount i.e. below $25000 only. There is a graded death benefit period of 2 years mostly where the beneficiaries receive the premiums you paid plus the 10% interest rate instead of the full death benefit amount. If you die in an accident, the death benefit is paid fully at once by the insurance company.
  • Simplified issue policies: Such policies are for moderate-risk individuals who do not qualify for fully underwritten policies. This is an affordable policy type with coverage up to $50000.
  • Policies with cash value: Some final expense policies include cash value. This savings component behaves like an investment and you earn interest on it. You may borrow against the cash value, withdraw it, or increase the death benefit.

 

Ask the experts at United Life Insurance to help you make a better decision.