There are many ways to financially protect your loved ones when you die. The most recognizable options include wills, trust funds, savings, and life insurance policies. An option you may have never heard of is a final expense insurance policy. These policies are perfect for people who want life insurance but either can’t qualify for it or can’t pay for a standard life insurance policy. Read on to learn more about final expense policies.
Final Expense Insurance Overview
Final expense policies are like smaller life insurance policies that guarantee acceptance. They typically range between $2,000 to $50,000. In contrast, standard life insurance policies usually start around $100,000 on the lower end. Final expense insurance accepts everyone, unlike standard life insurance, which does not have guaranteed acceptance. Otherwise, final expense insurance works like traditional life insurance. You purchase the policy, and your family receives the death benefit – the policy amount – upon your death. They can use that death benefit to pay for costs of their choosing.
Final Expense Policy Costs
Multiple factors will dictate the monthly cost of a final expense policy. People expected to live longer will pay less per month because they are predicted to pay for more months overall. For example, a $50,000 policy will cost more per month than a $25,000 policy if you purchase it at age 65. However, suppose someone buys a $50,000 policy at age 50, and another person purchases a $25,000 policy at age 65. In that case, their policies may cost nearly the same. On average, expect to pay anywhere from $10 to $70 per month.
What Can My Loved Ones Use the Policy For?
Final expense insurance is very flexible. Your loved ones can use it for anything they choose. Many people choose to use it for funeral costs, but they could also use the death benefit for many other causes. Your loved ones can use the policy to pay for health bills, mortgages, credit card bills, family vacations, car payments, etc. There is no limit.
Choosing Final Expense Insurance
Deciding if this insurance option is right for you can be hard. Luckily, at Medicare Professionals, we specialize in guiding you toward your best option. Contact us today for more information!