The cost of funerals keeps growing yearly. According to the National Funeral Directors Association (NFDA), the cost of burials rose to $7,848, and cremation was $6,971 in 2021.
Final expense insurance offers the best ways to be there for those you love even after your death. It allows you to cover your funeral expenses.
That eases the financial burden on your loved ones. It also guarantees that they won’t suspend your last wishes due to financial constraints.
Are you wondering what this final expense insurance is and how it works? This quick final expense insurance guide offers everything you need to know in simple language. Keep scrolling to learn more.
What Is Final Expense Insurance?
Final expense insurance is sometimes called burial insurance, funeral insurance, simplified or modified life insurance. It’s almost similar to whole life insurance. The only difference is that it’s more affordable and offers death benefits to beneficiaries.
The face value (death benefit) of final expense insurance can range anywhere between $2,000 and $50,000, depending on the premium policy you choose.
Qualification Criteria for Final Expense Insurance
The insurance covers anyone from the ages of 0 to 85 years. But, the process is faster and less complicated if you’ve already hit the 50-year mark. Qualifying at a lower age depends on your health and state regulations.
While the insurance policy doesn’t require you to do any medical tests to prove your health, you’ll still have to show the credibility of your health status.
Some of the requirements for younger policyholders include:
- Being on dialysis currently
- Suffering from chest pains during the last 12 months
- Your diagnosis is positive for terminal illnesses
- You have Alzheimer’s or dementia
- You’ve suffered a stroke during the past 12 months (even mini-stroke)
How Does Burial Insurance Work?
Final expense insurance offers you an affordable way to assist your family in taking care of your funeral expenses. It’s cheaper than regular life insurance. Also, the insurance is permanent, meaning your beneficiaries will receive the full benefits regardless of when you die.
But like any insurance policy, you’ll have to be consistent in paying your monthly premiums. Also, every insurer has its terms of service, but the process is relatively easy to manage.
Since the name suggests what the policy does, your heirs won’t have a problem identifying what to do with the money.
Again, your insurer will pay the death benefits to your heirs. While the money is designed to help with funeral expenses, if you chose cremation, your family is free to channel the funds to whatever they deem fit.
Should You Have Final Expense Insurance?
Final expense insurance comes with several benefits that you may want your family to enjoy. Apart from easing the burden on their pockets, this policy also builds cash value. You can access your funds through loans and withdrawals.
The USA Life team helps you get the best policy for your case. You can also trust us for reliable final expense tips and guidance. Contact us today to talk to an expert or apply for your coverage.