Final expense insurance is a form of life insurance that will cover your hospitalization or funeral costs. It goes by many different names, such as “burial insurance,” “funeral insurance,” “modified whole life insurance,” and “simplified issue insurance.” This type of insurance coverage is most popular among the elderly.
How is it different from the standard life insurance?
Generally, the final expense insurance and standard life insurance are similar in character. However, insurance companies have found a way to offer smaller policies to be more affordable to prospective clients.
How Much Do Funeral Expenses Cost?
According to the National Funeral Directors Association, the average cost of funeral services ranges from $7,500 to $9,500.
The services include:
- Removal and transfer of the remains to the funeral home
- Embalming and preparation
- Staff and personnel
- Printed materials
For instance, a rental casket will cost you an average of $900, while a wooden burial casket will set you back $3,000.
As you might expect, the expenses can be substantial, especially if you have no extra money lying around. However, life insurance policies may be prohibitive for some people who cannot afford to pay the monthly, quarterly, or annual premium.
Enter the Final Expense Insurance
The target market for the final expense insurance would be the senior citizens who are already at the twilight of their lives. At this point, their mortality is already staring them in their face. They would be thinking about easing the burden for their surviving loved ones when they pass on.
Different insurance companies have their respective policies and processes. You find out more about Colonial Penn Burial Insurance by following this link https://insuranceforfinalexpense.com/colonial-penn-burial-insurance-reviews/.
Final expense insurance would have the following features:
- No expiration date, as long as the premium payments are up to date
- The cash value may be taken out to be used for other purposes
- The process is simplified, which means that the policy owner doesn’t need to provide a medical exam. But they will be asked a few questions during the application
- The premium payments are fixed
- The application process is straightforward
- The approval for the applications is fast
- The monthly or quarterly rates are affordable
But senior citizens are drawn to one feature of the final expense insurance: burial benefits.
With traditional life insurance, the primary purpose is to replace the lost income when the policy owner dies. It will help the surviving family navigate life even as they grieve for their loved ones. The policy is crucial for families who are still productive and with mounting bills to pay, such as their house mortgage, car payments, utilities, and education for the kids.
However, for senior citizens, those problems are already behind them. They only want to take care of the funeral and burial expenses so that their children and grandchildren would not have to pay for them. In effect, it is their final parting gift to make sure their loved ones do not have to worry about anything when they pass on.
Do you Need Final Expense Insurance?
The beauty of this type of insurance is the affordable cost.
For example, if you take out a $10,000 policy for burial expenses, you may pay between $25-30 if you are 50 years old. The older you get, the higher your monthly payments would be. For instance, if you are 60 years old, you are looking at a $33-43 rate. An 80-year-old policyholder pays from $95 to $130 each month.
Generally, male policy owners pay more compared to females.
Unlike other coverage forms, the final expense insurance does not bury you under a mountain of requirements and documents. One thing that hinders seniors from getting life insurance is their failing health. They spend money to get checkups and lab tests only to be rejected due to a preexisting condition.
With the final expense insurance, you do not need an extensive medical checkup to qualify. There is no need to submit a health report before you are approved. This part is crucial because it is extremely rare for a person to be fully healthy in their advanced years.
If you are over 40 years old and think that you do not have enough money to cover the end-of-life costs, this type of insurance is perfect for you. For instance, the monthly payments from Colonial Penn Insurance do not put a hole in your pocket, and you have peace of mind that your loved ones would not face the financial burden at the time of your passing.