What is Final Expense Insurance?
Final expense insurance (also known “burial insurance”) is a form of a whole life insurance policy with a small death benefit. Final Expense policies are easier for seniors to get approval. Often it requires answering only a couple of health-related questions, but a medical exam is not necessary.
Death benefits usually range from $5,000 to $25,000, with the premiums being paid either weekly or monthly. Most often the benefit is designed to cover funeral-related expenses such as the funeral, cremation, embalming, memorial service, and a casket. However, most final expense insurance policies allow the death benefit to be used for any purpose,.
Advantages of Final Expense Insurance
- Policies are widely available, even to applicants with health issues
- No medical exam is called for
- Policy premiums are fixed
- Death benefit is guaranteed, although some plans require a 2yr to 3yr waiting period for full benefit payout.
- The policy is guaranteed to never expire as long as the premiums are being paid
- Death benefit can be used for any purpose and is not taxable
- Relatively low death benefits, which may not turn out to be beneficial if the insured person is younger
- One missed premium payment may terminate the policy (also true for other insurance types)
- With a final expense policy you will likely pay premiums for the rest of your lifetime.
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The information provided on this site is for informational purposes only. 360 Partners LLC dba Harris Advisors, its affiliates, subsidiaries, employees, agents and/or representatives do not provide tax, investment, or legal advice. Please consult with your own tax, investment, or legal advisor with any questions. Licensed in DE, GA, MD, NC, NJ, PA, SC and VA.