What is final expense insurance?
How does it work?
When you purchase a final expense insurance policy, your family or beneficiaries will receive a payout upon your passing to cover your end-of-life expenses. Typically, final expense plans have smaller death benefits than other life insurance plans – usually between $2,000-20,000. As long as you are up to date on your premiums, your beneficiaries will receive your full death benefit when you pass away.
What does it cover?
Final expense insurance is typically used to cover costs associated with the end of life, such as final hospital or medical bills, funeral or memorial expenses, and burial or cremation expenses. However, because final expense insurance is technically a whole life insurance plan, your beneficiaries can use the benefit to cover other costs as well.
Do I need final expense insurance?
Your final expense policy can give your family financial comfort and help ease the burden of planning a funeral, so it’s a wise investment if you can afford the premiums and would like to cover your end-of-life expenses.
However, you might find that your final expense policy won’t provide the level of coverage you’d like to leave your dependents. If you’d like to leave your family a more significant death benefit, you may consider term or whole life insurance – or a combination of policies.
