Insurance

What Is Final Expense Insurance and Why Should You Get It?

We plan for weddings, we plan for Christmas, we plan for holidays, but when it comes to planning your end-of-life details and decisions, things get harder. Everybody wants to revel in the highs, however, when it comes to end-of-life details, nobody really wants to spend too much time on the doom and gloom of it all. While it is hard to think about, I can stress how incredibly necessary it is.

It isn’t a hard concept to understand, but it is a hard one to accept and that is completely understandable. It is so fun to think about your travel plans and Christmas celebrations, but when you must consider what will happen to your beloved family after you’re gone, it can be hard to have the conversation. Final expense insurance is the perfect way to make sure that your family will be okay if you were to pass.

All About Final Expense Insurance

Final expense insurance was specifically designed to make sure that in the event of inevitable tragedy, your loved ones are safe and secure. They will be financially safe because they won’t have to fork out money they don’t have or were not prepared to spend because of your funeral. It is one way to make sure that your family still continues to thrive after you’re gone.

It is a great way to make sure that your debt, funeral expenses, and any excess payments are all paid off and will not fall onto your family’s shoulders. It can also cover nursing home costs that may not be covered. It is understandable that funerals are very expensive, and nobody wants their family struggling financially as well as mentally after they’re gone, so it is definitely something everyone should consider.

Getting Final Expense Insurance

As with any form of insurance, you will be asked a plethora of questions and to be prepared, you should know the answers to all of them. Obviously, there may be some surprise questions associated, but the basic ones are outlined below. Here are some questions you should be prepared to answer.

  • How tall are you?
  • How much do you weight?
  • How old are you?
  • What is your date of birth?
  • What is your gender?
  • Do you smoke?
  • Do you do drugs?
  • Do you drink alcohol?
  • What is your occupation?
  • What is your yearly income?

You will also be asked about your lifestyle and will likely be asked for an in-depth medical history for their understanding. Some of these questions will likely be expanded on such as alcohol-related questions. If you answer yes to drinking alcohol, you will be asked how often, how much, and if you abuse it. These are all questions that you will have to answer truthfully.

How Much Will It Cost?

Every insurance company will have a different cost associated; they won’t stay the same across the board. Premiums will usually be lower due to the fact that the coverage amount isn’t overly large. Shopping around is your best bet so that you can make sure you are receiving the best prices and service possible.

What Are the Disadvantages?

While there are significant advantages, it is only fair that the disadvantages are also considered. At the end of the day it all comes down to what is best for you and what decision you want to make, but here are some disadvantages to keep in mind while considering final expense insurance.

  • Limited coverage- While it may seem clear, sometimes final expense insurance won’t cover all of your final expenses. You need to make sure that the policy you choose will actually cover your final expenses, otherwise, you will be basically wasting your time.
  • Price- With the eventual payout in mind, final expense insurance is far more expensive than traditional policies are.
  • Waiting period- Of course the wait is one of the disadvantages. There is typically a long two-year wait period before the policy actually takes effect.

What If I Die Prematurely?

It all comes down to your final expense insurance policy being graded. Within the first few years, if you are to pass away due to a condition that as previously known about, such as heart disease, your beneficiary will not receive the entire amount of the policy. Though they will likely get back what you paid in interest or premiums. Most policies will pay out the entire policy immediately if your death is classed as accidental such as falling down a set of stairs.

When Is the Best Time to Buy?

It is never too soon to consider your end-of-life details, however, there are better times than others to take out final expense insurance. You can take out final expense insurance between the ages of 45 and 85, anytime between those two ages is absolutely ideal, but it is always a good idea to plan early.

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