The final expense insurance will cover end-of-life costs and give you peace of mind that your loved ones will not be left behind with the financial burden of paying for the funeral and burial expenses.
Here are some benefits if you get final expense insurance:
- Getting your affairs in order — A policy that can pay you from $10,000 to $25,000, and even more, to help pay for the funeral and burial expenses. The amount is tax-free, so your family will get the full amount. With all your affairs in order, your loved ones can concentrate on grieving you properly. You’ve heard of so many stories of families who could not process their emotions because they are worried about money.
- Protecting your loved ones — You spend your entire life providing for your family. The final expense insurance will provide you with an opportunity to give your family your greatest gift–unburden them from additional expenses as you pass on.
- Enjoying peace of mind — You can live the rest of your twilight years worry-free because you know that your family is taken care of when you pass. Funeral and burial expenses are not exactly cheap. For some families, it can be a death knell if they do not have extra cash. You will not leave them wallowing in debt as they scramble to raise money to cover the cost.
- Keeping your will — Last expense insurance will also allow you to protect your estate. Your family would not be forced to dip into their potential inheritance to cover the funeral and the burial expenses. You can know more about final expenses insurance by following this link (https://insuranceforfinalexpense.com/colonial-penn-burial-insurance-reviews/).
What Expenses are you Looking at?
To give you an idea of the expenses, the National Funeral Directors Association has a handy guide of what you would be looking forward to:
For example, funeral services cost will range between $7,500 to $10,000. The expenses will already include the transfer of the remains from the location to the funeral home, the body’s preparation, the staff that will attend the funeral, the hearse’s use, and the casket. The casket alone will cost you about $3,000 for a wooden one. The metal casket will be more expensive.
Can You Use The Final Expense Funds Other Than Funeral and Burial?
One of the best features of the final expense insurance is you can withdraw some of the money for other purposes.
- If you accrued enough cash value in your policy, you could utilize some of it for your medical expenses. The problem with most private health insurance policies is that patients with preexisting conditions are automatically rejected from applying. With final expense insurance, health screening is not as stringent.
- Fund your retirement — If you started paying for your final expense insurance premium when you are still 40 years, you might accumulate enough cash value to add to your retirement funds. It is great news for seniors whose social security pensions might not be sufficient.
- Paying estate taxes — Estate taxes can be very expensive, and they would be a huge burden to the surviving family members who are forced to borrow money to get their inheritance. The premium is also not taxable, which means you can maximize the value.
- Pay mortgage or bills — Lingering illnesses can be a huge burden to families, especially the medical expenses involved. A standard feature of the final expense insurance is that you can use some of it to pay utility bills, credit cards, mortgage, or hospital expenses.
How Much Does Final Expense Insurance Cost?
The main appeal of the final expense insurance is its affordability. You can pay as little as $25-30 per month for the premium when you start early. On average, senior citizens are paying $70 each month for coverage.
Since it is not meant to supplant your life insurance, the final expense insurance will only be good for a small claim. You can take out a policy worth $10,000, which would be enough to cover your funeral and burial expenses. Some small policies would only be good for $5,000, but they are getting rarer, considering the rising costs of funeral expenses.
On average, the payment for the final expense insurance is around $25,000. You will receive your policy’s full value, except when you borrow against the cash value during emergencies or any other reason.
Finally, nothing stops you from taking out final expense insurance even if you already own a life policy, especially if you can afford it. If you are looking for insurance companies to work with, Colonial Penn life insurance is a great one to check out.