Final expense is a type of life insurance that covers funeral costs and other fees loved ones may face after the insured’s death.
How Does Final Expense Insurance Work
Final expense insurance works similarly to other life insurance plans, but it is typically smaller than other plans, making it more affordable. When choosing a policy, you will work with the insurance provider to determine your death benefit, i.e., the payout the policyholder leaves to their loved ones to cover expenses upon passing away.
Your death benefit, sometimes referred to as a face value, may be anywhere from less than $2,000 to $50,000 or more. This payout will depend on your medical and funeral costs. According to the National Funeral Directors Association, the average cost of a funeral and burial/cremation is around $7,360.
The Affordability of Final Expense Plans
Final expense plans are a good option for the elderly or those in poor health. Compared to other types of life insurance, this type of plan is more widely available to those who may otherwise be ineligible for a plan.
It is also significantly less expensive than other plans. You do not have to worry about losing your death benefit after a certain amount of time like a term life plan—as long as you pay your premium, you are guaranteed to receive the payout.
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The Dangers of Final Expense Plans
With final expense plans, if you pay premiums for a longer period than expected, the amount you contribute monthly may exceed your death benefit.
One of the biggest dangers of a final expense plan is the insurance company itself. Final expense plans are often marketed with incomplete or false information, making it difficult to determine the real contents of the policy.
Find a Final Expense Plan Easily
Final expense plans are a great option for many people. However, finding a good plan can be difficult. We will do what it takes to find the plan you need at a cost you can afford without fear. When you’re ready to get started, call World Financial Solutions at 281-639-7787.