Although, the policy is called "final expense insurance," it is no different from a traditional life insurance policy with a small monetary value. A final expense insurance policy can be identified by wording in the policy that specifies the proceeds are to be used for final expenses relating to the funeral and burial.
|Level of Protection:||from $2,000 to $75,000 (final expense plans)|
|Period of Insurance:||for life with a cash accumulation feature built-in|
|Three Coverage Options:||*Level Benefits *Graded Benefits *Guaranteed Issue|
Final expense insurance allows you to feel safe knowing that funeral-related expenses are covered regardless of the status of your estate at death. A person who lives on a fixed income and might not leave much of an estate for family to use for burial costs is an ideal candidate for final expense insurance.
|Accelerated Benefits||Accelerated Death Benefit for Chronic and Terminal Illness or Nursing Home Confinement|
|Optional rider:||Accidental Death Benefit Rider|
Planning ahead is smart especially when loved ones are concerned. Whole Life insurance is one way for you to help protect loved ones during a difficult time. Funds may be used for final expenses, and other purposes.
While most people don't like to talk about end-of-life issues, it is important to plan for them. Expenses associated with death, such as caskets and embalming, can have a substantial financial impact on those you love. Final expense life insurance can help protect loved ones from having to pay these costs out of pocket.
In 2014, the average funeral exceeded $8,500 (2015 Nfda.org Statistics). In most cases, a basic funeral service will include a memorial, death certificates for the deceased, and housing the remains. In addition to those costs, there are also charges involved for goods and services, such as transportation, preparation and embalming, use of the funeral home, a casket and headstone, a burial plot, gravesite, the burial service, or alternatively, cremation. There may also be additional costs, such as flowers and the printing of memorial cards.