There are many individuals who are sole earning bread winners for their families. One of the primary responsibilities is to protect your family’s financial security while you are alive and earning. We all understand the importance of life insurance in our lives but the concept which is difficult to understand is how much life insurance you need? The real reason for this is that life insurance needs change at every stage in life. One of the needs arises when you are retired and this is when final expense insurance comes into picture. Ensuring that your family is financially secured and they do not face the burden of burial expenses, you need final expense insurance, also known as burial insurance. By buying a final expense insurance policy you give a sense of security. There are many final expense insurance companies which offer these whole life (permanent) policies at competitive rates.

 

Is There A Need Of Final Expense Insurance

To be honest, people find it rather awkward to discuss the topic of final expense insurance. That being said, we need to look at the practical side of things. Any financial planning product which exists in the market is meant to solve one particular problem and caters to one specific need. So, why should you buy a product like burial insurance? Well, it is estimated that the costs revolving around funeral and cremation ranges from $400 to $4000 depending on the place where you reside. To get the exact cost of funerals in your society you can get in touch with Funeral Consumers Alliance and get in touch with one of their representatives. A final expense insurance policy helps in paying funeral costs during the time of need without laying a burden on your family. As per the data from National Funeral Directors Associationthe average cost of funeral was around $7,000 in the 2012. The cost of funeral and cremation would all depend on the locality you live and the service provider you choose.

 

The Right Candidate To Purchase A Final Expense Insurance Policy

These types of policies are generally purchased by senior citizens who are between 50 and 80 years of age. Moreover, by the group of people who might be suffering from some kind of chronic disease which makes their eligibility for a traditional life insurance plan almost difficult. These policies are like whole life insurance plans hence designed to take care of the lost income that a family would suffer if they lose their earning member. It is advised to buy such policies when you are young to avoid steep prices in later stages of life.

 

Basics Of Final Expense Insurance Policy

Often, you will notice that final people use the terms final expense insurance and burial insurance interchangeably. Now, both refer to the same insurance plan which is an affordable way to manage your funeral expenses. Having said that, burial insurance is specifically designed to pay for the funeral and burial costs and final expense policy goes a little ahead in terms of financial support. It will pay for burial costs, and provide money to your family to help clear any debts and take care of other expenses in the time of need. Generally there are two types of final expense insurance policies. One is called “Immediate Full Benefit Insurance Plan” which is suitable for seniors with no serious health issues which require immediate attention.  In such plans as soon as your coverage starts you get the full death benefit. The second type is called as “Graded Benefit Insurance Policies” for people who have chronic health issues which require immediate intervention.

Features Of Final Expense Insurance Plan

 

• There is no physical examination required. You will only need to answer few basic questions regarding your health.
• Premiums are leveled and guaranteed for life
• Advantage of tax free death benefit. The cash value component grows tax deferred  over time
• You can renew the policy irrespective of any changes to your health condition
• Once you receive the policy documents, you are entitled for a 30 day “Free Look” period in which you may cancel the policy if you don’t want to go ahead with it.
• Protection typically ranges to a maximum of $35,000 to $75,000
• As these types of policies are written for a specific purpose, the face value is less compared to a traditional life insurance plans.
• It is a whole life insurance plan which is a part of permanent life insurance segment
• Depending on the insurer, you can avail flexible payment options.

So, as we see, buying I final expense insurance plan will ensure that your loved ones do not face any financial hardship. The amount of coverage you need would depend on your individual circumstances. Use our custom multi-quote life insurance comparison engine at the top to get the best and the most competitive rates in your area.