Nobody likes to think about dying, but thinking about that topic becomes more necessary as you get older. You might consider things like estate planning, health care, assisted living facilities, and your wishes for your funeral. Most people want to make their passing as easy as possible for their survivors, and one way to do that is to purchase final expense insurance.
According to the National Funeral Directors Association, the median cost of a funeral in the US that includes viewing and burial was $7,640 in the year 2019. When the price of a vault was added, that total was $9,135. Total costs can be much more, for instance, if a more expensive casket is used. There are other expenses also, such as flowers, cemetery plots and fees, obituaries and grave markers or monuments.
While cremation costs are lower, they still range from $1,500 to $6,000 or more, depending upon the visitation and funeral service options that you choose.
Pre-need insurance is one type of insurance that is purchased from a funeral director. The death benefit of these policies goes directly to the funeral home of your choice and is used solely to cover expenses related to your funeral and burial.
Final expense insurance is a more versatile type of insurance that is purchased from an insurance company. The only difference between final expense insurance and whole life insurance is that the face values of final expense policies are much smaller; the maximum death benefit is usually under $50,000, but average death benefits are between $5,000 and $25,000.
The purpose of buying this type of policy is to provide funds for your funeral and burial, but unlike a pre-need insurance policy, a final expense policy can be used by the beneficiary for anything at all. There are several benefits to buying a final expense insurance policy:
* No medical exam is required, although you will fill out a general health questionnaire.
* These policies are permanent
* Your beneficiary will not have to pay taxes on the death benefit.
* If the premium is paid, the death benefit is guaranteed.
* Premiums do not increase over time for most final expense insurance policies.Some insurance companies require a minimum and maximum age for issuing final expense policies, usually between 45 and 85. If you are in good health and purchase a policy at age 45, your premiums will be much less than if you wait until you are older or in declining health. Older people may be restricted in the amount of the death benefit they can purchase. In some states, your gender can affect the premium amount because women typically live longer than men. Different insurance companies have different requirements, so it is important to research before buying a policy.
Using a licensed final expense insurance agent to provide quotes can save lots of time and effort. Billy.com is a free-to-use resource that can provide you with top-quality final expense insurance options. Let Billy.com help you find a qualified agent to assist you today. If you are considering final expense insurance, be sure to also look at a life insurance policy.
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