10 Things Most People Don't Know About Final Expense Insurance
- Karl Smith
- Mar 10, 2023
- 2 min read
Final expense insurance, also known as burial insurance, is a type of insurance policy designed to cover the costs associated with end-of-life expenses, such as funeral and burial costs, medical bills, and outstanding debts.
Here are 10 things you should know about final expense insurance:
1. Final expense insurance is typically less expensive than traditional life insurance because it only covers a specific amount of money, rather than providing a death benefit that can be used for any purpose.
2. It is available for people with pre-existing health conditions, unlike other types of life insurance.
3. Premiums for final expense insurance policies do not increase as you age.
4. The coverage amount for final expense insurance is generally lower than traditional life insurance policies, usually ranging from $5,000 to $25,000.
5. Final expense insurance policies can have a waiting period before death benefits are paid out, usually 2 years.
6. It can be purchased as a term or permanent life insurance policy.
7. If you choose a permanent policy, the death benefit is guaranteed and the policy will accumulate cash value over time.
8. Final expense insurance policies can be used to cover funeral and burial expenses, medical bills, and outstanding debts, such as credit card balances or mortgages.
9. Some policies have an accelerated death benefit, which means the policyholder can access a portion of the death benefit while they are still alive to pay for end-of-life expenses.
10. Final expense insurance is a good option for people who want to ensure that their loved ones are not left with the financial burden of paying for their end-of-life expenses.
Final expense insurance can be a valuable financial tool for many people, providing peace of mind and financial protection for both policyholders and their loved ones. It is important to consider your needs and budget when choosing a final expense insurance policy.
It is always best to consult with a licensed insurance agent to help you understand your options and find the best policy for you and your loved ones.
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