Home Finance What Is Final Expense Insurance? The Basics Explained

What Is Final Expense Insurance? The Basics Explained

by Purva Jagtap
What Is Final Expense Insurance? The Basics Explained

Are you looking for more insurance policies?

Over 90% of Americans have health care insurance. However, lots of other policies exist out there. One of them is final expense insurance.

You might feel confused about the specifics of this insurance type. Don’t worry since this guide will discuss everything you need to know about final expense insurance. Read on and find out more:

What Is Final Expense Insurance?

It’s a whole life insurance policy with a small death benefit. It’s easier to get approval because it’s a small policy with a face value. The value of the benefit ranges from $2,000 to $50,000.

Final expense insurance stands out because of its more affordable nature. Its death benefit aims to cover various expenses like the following:

  • Funeral
  • Embalming
  • Caskets
  • Cremation

However, the policy’s beneficiaries can use the benefit for anything. Whether it’s for property taxes or a vacation, this insurance policy allows it.

How Does Final Expense Life Insurance Work?

After retirement, you’re unlikely to enjoy life insurance from your employer. If you have no individual life insurance policy, you might worry about your family’s financial burden when you pass away. It’s especially if you have an inadequate nest egg.

When it happens, you can contact a life insurance agent to begin the application. They will ask some basic questions concerning your health. However, you might not have enough money for the policies because of your health and age.

Don’t give up yet since final expense life insurance solves this issue. It’s a policy for insurance companies to absorb the risk coming from serious medical conditions. It means you can secure this policy despite your age and poor health.

Benefits of Buying Insurance

Final expense life insurance’s primary benefit is its affordable premiums. It may offer smaller death benefits, but it’s a worthy trade-off.

It’s also a permanent policy. Regardless of your manner of passing, your heirs get the death benefit. As long as you paid your premiums beforehand, your loved ones will have a little help from you.

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Guaranteed Issue Final Expense Insurance

For applicants with serious medical problems, it’s almost impossible to become eligible for a policy. However, they’re only eligible for policies without requirements like exams, medical records, or medical questions. It’s where guaranteed issue policies come in.

Guaranteed issue final expense life insurance has two or three-year waiting period for their policies. After that, the insurance company will pay for the benefits.

If the insured passes away before the policy’s waiting period expire, the beneficiaries won’t get the death benefit. Instead, they return the paid premiums alongside interest.

Get Final Expense Insurance Now!

Well, there you have it; everything to know about final expense insurance policies! Use these facts to determine whether getting one is worth your time. After all, it’s redundant if you have a regular life insurance policy.

Did you find this guide interesting? Read our other articles and learn more valuable information today.

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