What is Final Expense Insurance
Final expense insurance is a form of life insurance that has a small death benefit and lower overall costs. It is also easier to qualify for final expense insurance, making it a great option for people who need coverage immediately. This is what you need to know about final expense insurance policies.
Final expense insurance is also known as burial insurance and it can help your loved ones pay for death related expenses, such as burials and cremations. The death benefits are small, but this also means you don’t have to pay as much in premium payments. This means final expense insurance can prove to be a useful supplement for a term or whole life insurance policy.
Final Expense Death Benefits
With final expense policies, the death benefit will likely be $20,000 or less. Some plans offer death benefits as high as $50,000, but they are rare. This is because insurance companies expect the average burial or cremation to cost anywhere from $5,000 to $15,000. With this in mind, it is also important to note that final expense payouts do not have to be spent on burial or cremation costs. In fact, the beneficiaries are free to do whatever they like with the money.