Final Expense Life Insurance Plan – Do I Really Need It?

final expense life insurance plan

People who want to get life insurance always look for either term life or permanent life. Many are not aware of final expense life insurance plans. It is good to know and understand what it is. Hence, it may help you with your future financial plan. A final expense life insurance plan might just be the right insurance plan that you are looking for. Continue reading if you want to find out more about it and how it can benefit you. 

What is Final Expense Life Insurance?

First, it is similar to other life insurance plans that provide a payout to your family or your estate in case of your early passing. It is good to know that it can handle funeral expenses like burial or cremation. It will also provide a cash payout to your bereaved family but not as large as what you can get from term and whole life. Typically, it can give an amount as much as $5,000-$10,000. With the term life insurance and whole life, it can give a payout of $250,000 or more. 

Moreover, one big benefit of final expense life insurance plans are their low monthly premiums. Aside from that, an insurer can choose to have the payout be given directly to their funeral home or a beneficiary for their funeral expenses. Any leftover funds will go to their beneficiary. 

How Does It Work?

It is a policy created for senior people between the ages of 50 to 80 years old. The beauty of getting one is the fact that you will not undergo any medical examination. Also, it has a very easy application process. Moreover, you will pay a fixed monthly premium that will stay throughout the policy. However, that policy may stop at any time in case you stop paying for the monthly premium. 

Furthermore, it does not build cash quickly.  Unlike some other whole life insurance coverage. The policy will not gain much investment in the course of the policy. Your family may also need to pay the taxes on the payout, so it is imperative to check with a tax representative for additional information. Another thing to keep in mind is that gender can affect the price of a monthly premium. Women live longer than men, so males insured will pay a much higher premium. Therefore, expect an increase of 25% in the monthly premium. 

How Can It Be Used?

This policy’s main purpose is to have funds for the funeral and final expenses as the name suggests. However, it can offer financial relief for other debt as well. It means that it can cover more than just the funeral, but all final life expenses. For instance, medical hospital bills, service for the minister, legal fees, credit balances, loans, and mortgage bills are some. So, if you plan to acquire a final expense life insurance plan, it is good to consider your other expenses before you decide on the amount of coverage. To help you get through the process of finding the right final expense life insurance plan with ease, you may contact a reputable online independent insurance agency like Coach B. Insurance. They can help you from start to finish. You may contact them at 800-342-1537.

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About Coach B.

After starting his financial career with Phoenix Home Life Insurance Company back in 1992, Scott decided he wanted to provide people with an easier and more enjoyable way to buy life insurance. That was the start of Coach B. Life Insurance, whose mission is to be transparent, honest, and helpful to customers — without ever bugging or pushing them.

In the years since then, he has worked tirelessly to improve the process of shopping for insurance. His goal is to make sure that everyone who comes to Coach B. — whether they end up buying a policy or not — has the best possible experience.

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