You need life insurance if somebody will suffer financially when you die.
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Final Expense insurance, also known as a variation of traditional life insurance, is meant to cover the bills that your loved ones will confront after you pass away, including funeral expenses and medical bills.
Final expense insurance is a form of whole life insurance sold in small quantities, typically between $5,000 to $25,000.
Final Expense insurance guarantees payment of a death benefit to beneficiaries in order to assist in covering the costs of funeral and any left over medical expenses. Many times, family members pay out of pocket when a loved one passes and if that family member is your beneficiary, they will receive the funding back for the costs of the funeral expenses.
Many people tend to believe that Final Expense insurance is sold by funeral homes. That is incorrect. Funeral homes sell pre-need funeral services in which only funeral expenses are covered by the policy. So in that scenario, only the funeral home benefits.
A true final expense policy pays the benefits to named beneficiaries on the policy, again, to help cover funeral costs and any left over debt. It is unfortunate that medical bills are the #1 left over debt when a loved one passes on; debt that can possibly be transferred to an estate depending on where you live.
Funeral expenses have increased over the years so it is wise for you or a loved one who has an interest in preparation do a financial review of how much coverage will be needed when the time comes.
About Final Expense Insurance