What Is Burial Life / Final Expense Insurance? — Financial Relief in a Time of Loss
Unfortunately, even bare-bones funerals can cost thousands of dollars. Burial life Insurance/ Final expense insurance is designed to cover the bills that your loved ones will face after your death. These costs will include medical bills and funeral expenses. Final expense insurance is also known as burial life insurance. Final Expense Life Insurance can help families deal with grief, rather than worry about burial expenses.
Life insurance through the American Insurance Community Group (AICG) can be the foundation of a family’s financial protection. One kind of whole life policy is Final Expense/ Burial life insurance. Final Expense insurance can help prepare your family financially for your loss while building cash value you can use during your lifetime.
To learn how affordable Final Expense insurance can be, speak with a Final expense agent for more information.
Burial Life / Final Expense Insurance: The Basics
A final expense life insurance policy isn’t the same as what’s known as “insuring your life.” Insuring your life concerns leaving your family and loved ones with enough support after you pass away. Term and permanent life insurance value your policy as proportionate to your earning power now and for the rest of your life.
With funeral insurance, the value of your policy is proportionate to the expense of your desired funeral. While other forms of life insurance can top a million dollars, it’s rare for final expense insurance policies to get above $20,000.
Do I Need Final Expense Insurance?
The answer to that question will vary from person to person. Do you already have term or whole life insurance? If you do, that policy can help your loved ones pay for final expenses. However, if you have term life insurance and you outlive the policy term, it’s a different story. In that case, you may want to consider final expense insurance.
Don’t forget to take into account whether you will want a catered party after the service or perhaps a trip abroad to scatter your ashes. Maybe you’ll end up leaving big bills behind. If situations like these sound like your situation, you may want to consider springing for final expense insurance. Additionally, it’s probably best not to count on the lump-sum death payment from Social Security to pick up the slack. It’s only $255.
The Cost of Final Expense Insurance
The exact cost of your final expense insurance will depend on your age. Unfortunately, the older you are, the larger the premiums. This is because insurance companies take on more risk when insuring older folks, given the fact that they’re statistically closer to death. If you buy final expense insurance when you’re 45, you’ll pay less each month than if you wait to purchase until you’re 75.
Why people choose final expense insurance
- The death benefit is guaranteed as long as premiums are paid as required.
- You can choose between monthly or annual premium payments.
- The cash value of the policy accumulates tax-deferred.
- Your beneficiary chooses whether or not to use the death benefit for burial expenses.
- Your policy may earn dividends (there’s no guarantee). If it does, those dividends can accumulate while earning interest, purchase paid-up additions, be used to reduce a premium that’s due, or be paid in cash – it’s up to you.