Each final expense insurance company sets its rates based on the company’s underwriting guidelines, and that can change in various time periods monthly, quarterly or annually. The best way to figure out which of the final expense insurance companies is right for you is to reach out to an independent agency like Family Legacy Insurance shop the insurance companies for the policy that makes the most sense for your current needs.
This coverage is best suited for individuals 50 years of age or older and are looking for a small policy with the intention of using the proceeds to help protect the surviving family members’ responsibility for funeral arrangements. However, the insurance payout can be used by the beneficiaries for what they desire.
Upon death there will be expenses connected with the deceased and with the cost of funeral expenses increasing, final expense insurance or burial insurance can help cover costs incurred during the end of life, such as medical bills and other expenses. This is the ideal reason to use this type of coverage, but beneficiaries can use the death benefit payout for whatever they want.
Usually it is, but the greater the premiums with the low death benefit these types of policies have can easily become inverted. This means, over time, you could end up paying more in premiums than the face value of the policy. This is one of the reasons why this type of policy is best for people who are older. Final expense insurance isn’t really intended for younger adults.
Final expense insurance gives people peace of mind because they know their spouses and other family members will not be saddled with unexpected expenses during an already difficult time. Given that many health insurance policies are now structured as high-deductible health plans, where there is still a significant financial obligation, final expense insurance is often used to help protect loved ones from financial responsibility for the insured person’s end-of-life medical expenses, as well as the costs of funeral services — which are continuing to increase.
It's life insurance policy with coverage that is presented as a product that provides a small benefit intended to ensure that costs associated with the death of the insured have some level of financial coverage.