iQuanti: Final expense insurance is a type of whole life insurance policy designed to help your loved ones cover end-of-life costs, such as burial and funeral expenses. These plans typically come with lower premiums than traditional whole life policies without losing the benefits of guaranteed lifelong coverage. Below, we'll dive into the pros and cons of final expense insurance to help you decide whether getting this type of life insurance quote is right for you.
Pros of final expense insurance
Final expense insurance comes with many advantages, including:
Helps loved ones cover end-of-life expenses
End-of-life expenses, such as hospital bills and funeral expenses, can cost tens of thousands of dollars. A final expense insurance policy helps your loved ones pay for these costs so they can avoid debt and remain financially stable when you pass away.
Lifelong guaranteed coverage
Final expense insurance has lifelong guaranteed coverage. As long as you continue to pay premiums, you don't have to worry about your coverage expiring.
Low-cost
Final expense insurance policy premiums tend to be much lower than other permanent life insurance policies. This can make it easier to fit the policy into your budget, and you can still enjoy the benefits of lifelong coverage.
No medical exam
Many life insurance policies require you to take a medical exam. If the policyholder is older or has a medical condition, this exam may strain approval chances. Final expense insurance, on the other hand, doesn't require a medical exam. This means these policies can be faster and easier to qualify for.
Cons of final expense insurance
Final expense insurance can also come with drawbacks, such as:
Small death benefit
Final expense insurance policies typically provide a death benefit large enough to cover your end-of-life costs, but not much more than that. If your family depends on you financially, a final expense insurance death benefit may not provide them with enough funds after you pass away.
The policy can lapse if you stop paying premiums
Just like with any life insurance plan, you have to continue making premium payments to keep your final expense policy in force. If you stop paying premiums, the policy will lapse, meaning your beneficiaries won't receive the death benefit.
The bottom line
Final expense insurance is a great life insurance option for seniors in good health. If you want to provide your beneficiaries with an added layer of financial protection, this type of policy can help them cover end-of-life expenses while keeping your costs low. But keep in mind that final expense insurance has a smaller death benefit, and the policy will lapse if you stop making premium payments.
Spend time thinking about your financial situation and what you want for your loved ones after your passing. Then, make sure to research policies and shop around for several quotes to get a life insurance policy that fits your needs at a good rate.
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Original Source: Final Expense Insurance: Pros and Cons
