The purpose of final expense insurance is to provide peace of mind for you and your loved ones, but how does it do it? Here is the purpose of final expense.
What is Final Expense Insurance?
Final expense is a type of life insurance. This means that its main purpose is to provide coverage for end-of-life expenses. It does this by issuing a payout, called a death benefit, when you, the policyholder, pass away. For final expense, the death benefit can range anywhere from $2,000 to $50,000.
Rather than this money going to you directly, it is issued on your behalf to your beneficiaries. A beneficiary is someone you get to choose to receive the death benefit. In exchange for this benefit, you are asked to pay your insurance provider a monthly payment, called a premium.
The Purpose of the Coverage
Knowing what you receive is helpful, but now you need to know the purpose of the coverage. In reality, the purpose of the death benefit can be anything you want. If it fits in your policy, your beneficiaries can use it for it.
While you and your beneficiaries can use it for just about anything, people choose common expenses to cover as the purpose of their final expense coverage. For instance, a majority will cover the cost of a memorial service and burial or cremation with their policy. Prices can range from $2,000 to more than $10,000, so preparing for these costs with a final expense policy can make things much easier.
Then, if you have room for it in your policy, you can use it for other end-of-life costs as well. This may include credit card payments, medical bills, estate taxes, and more. Whatever you want to use it for, just make sure you talk over what you want the purpose of your coverage to be with your beneficiaries. If you’re all on the same page, you can confidently go forward knowing those important costs are taken care of. At the end of the day, that’s the purpose of final expense insurance.
Eligibility—How it Helps People
The purpose of final expense is also to help individuals get coverage that they otherwise wouldn’t qualify for. For the average life insurance policy, you will have to be young and in great health. Unfortunately, not everyone can meet those standards.
Final expense has a type of policy called guaranteed issue. With it, those applying do not have to disclose any health information, and can enroll up to 85 years old.
We’re Here for All of Your Life Insurance Needs
Secure Insurance Group focuses on what’s important. We’ll make sure you’re taken care of. To learn more about final expense insurance, get a quote or call 1-877-871-7328.