For many people, discussing end-of-life plans with their loved ones is difficult. However, burial costs and other related expenses could come as a shock to those who aren’t aware. In 2023, a burial costs an average of $7,500. Fortunately, preparing with final expense insurance can help you prepare for these costs.
Final expense insurance, sometimes referred to as burial insurance, is a type of life insurance policy that covers many types of end-of-life expenses. Final expense policies are offered from a variety of life insurance companies around the country. Depending on the policy, you could be covered for things like medical care, funeral costs and other related expenses. Learn more about final expense insurance and how it may be able to help in the slides below.
Final expense insurance is a type of life insurance policy that covers you for costs directly related to end-of-life arrangements. A funeral is often one of the biggest expenses for seniors and their families. A final expense policy could help offset this major cost and may even provide coverage for other related expenses.
A traditional funeral can cost anywhere between $6,000 and $12,000. Added to end-of-life medical costs and other expenses, the total can place a huge financial burden on loved ones.
Fortunately, final expense life insurance can help. You can purchase this type of life insurance to help ease the cost of your funeral arrangements and other end-of-life preferences. It offers a small death benefit of up to $50,000.
Final expense insurance covers costs and expenses related to the end of the policyholder’s life. Specific coverage options vary depending on a few factors, such as the insurance company, beneficiary and plan. Final expense policies may cover a combination of the following expenses:
- Medical bills
- Funeral arrangements
- Celebratory events
- Outstanding bills
The amount of coverage you can get with a final expense insurance policy depends on a few factors, such as:
- The company
- Your health
- Your age
- How much you pay in premiums
You pay final expense insurance premiums each month in exchange for coverage. Typically, the older you are, the higher your premiums. This is because the insurance company considers you at higher risk. Younger and healthier adults could pay as little as $20 per month for a policy, while older adults with medical conditions may need to pay $100 or more.
Final expense insurance is a type of life insurance meant to provide minimal coverage to the policyholder for his or her funeral expenses. It is an alternative to term life insurance, which provides more comprehensive coverage for beneficiaries and dependents. Learn more about the difference between these policies in the next slide.