What Are Final Expenses in Life Insurance?
<lingo>The term final expenses refer to the costs associated with the end of life. It may include costs related to burial, cremation, final medical needs, and any other costs associated with a person’s death. Final expense life insurance is a basic form of life insurance that helps to pay for these specific costs. This type of life insurance tends to be more accessible to people who may not qualify for longer term health insurance or other forms of life insurance. It is possible to modify this coverage to fit just about any need a person has.</lingo>
Final Expenses Clearly and Briefly Explained
Final expenses can be high. At the time of death, a person may see costs rise due to end of life medical needs, as well as the costs for the final wishes of an individual. In many cases, these costs become the responsibility of the family or the estate to pay at the end of life. That can be very expensive. Final expense life insurance, then, provides a policy that covers many of these costs.
<twitter>The term final expenses refer to the costs associated with the end of life. It may include costs related to burial, cremation, final medical needs, and any other costs associated with a person’s death.</twitter>
Final expense life insurance is for a set dollar amount. It is generally around $10,000, though it can be more or less depending on what you wish to purchase. This type of life insurance can be used for any needs the beneficiary determines are necessary. The fixed death benefit is paid right to the beneficiary at the time of death. However, you can choose who this is. It can be paid, for example, to a funeral home for the costs of burial.
For those who did not purchase life insurance previously, final expense life insurance may be ideal as it is a lower costing policy than most term life insurance policies for those who are older or who have a preexisting condition. While the death benefit is not as high as other types of life insurance, it can help alleviate any financial strain from a family at the time of a person’s death. There are various forms with some building cash value over time and others offering a simple death benefit to the family.
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