Final expense is a form of life insurance coverage. The main purpose of final expense insurance is to provide a death benefit to the beneficiaries of the policyholder after their death, providing financial support. The payout from final expense insurance plans can be used to cover medical bills, funeral expenses, college fees, and other expenses. Final expense insurance can also be used to cover end-of-life expenses incurred by the policyholder.
What is a Death Benefit?
Final expense policies have a fixed death benefit. The death benefit refers to the lump sum paid to the beneficiary after the death of the policyholder. The beneficiary is not restricted to using the payout for only one purpose. It can be used to cover various expenses as they deem fit.
Types of Final Expense Policies
There are two types of final expense policies: simplified issue and guaranteed issue. Simplified issue is meant for people who are not eligible for a traditional life insurance plan but have a moderate health risk. There is no medical exam but the applicant will answer a medical questionnaire. Guaranteed issue plans accept most applications but are more expensive than simplified issue plans and have lower coverage amounts.
Is Final Expense Right For You?
Final expense insurance may be worth it for a lot of reasons. If you have dependents and you wish to provide a form of financial support for them after your passing, then final expense may be worth it. Your beneficiaries can use the death benefit to cover many expenses.
People living with chronic health conditions or who are older in age may also benefit from final expense. Generally, traditional life insurance policies won’t accept individuals who pose as a high to insure due to their health or age. However, final expense doesn’t take those factors into account. This means if you cannot get a traditional life insurance policy, such as whole life or universal life, you can opt for a final expense policy.
To learn more about final expense insurance and if it’s the right choice for you, reach out to Innovative Senior Benefits today.