Far too many Americans are falling short when it comes to life insurance. According to one survey, 44% of Americans would experience financial difficulty if the family’s breadwinner passed away.
The last thing you want to do is leave your loved ones in financial peril. Unfortunately, the costs associated with death are significant and many are left unprepared.
The cost of a funeral in the United States is up to $12,000. Few Americans can handle such a large expense.
Final expense insurance provides you with an affordable solution. Read on to learn everything about final expense life insurance. Explore this life insurance policy type and how it can benefit your family.
What Is Final Expense Life Insurance?
This type of life insurance policy is designed to cover funeral expenses. For this reason, it is also known as burial or funeral insurance.
The benefit is much lower than other forms of life insurance. The type benefit range for this policy type is $5,000 to $50,000.
Your financial needs for a funeral vary based on where you live. A funeral in the Northeastern portion of the United States costs a lot more than in the Midwest.
What Can Burial Insurance Be Used For?
The life insurance benefit is used to make for end-of-life expenses. Some examples of end-of-life expenses include burial, cremation, embalming, caskets, and more.
There are no limitations on what burial insurance can be used for. Many beneficiaries use the benefit to help pay down debt. The money does not need to be spent at all and can be deposited into a checking or savings account.
Others take a family vacation in honor of their deceased loved one. The bottom line is that there is no oversight of how you spend the benefit check.
Who Is Burial Insurance Designed For?
Life insurance companies are always looking to find the best leads for new clients. Burial insurance is often geared towards older individuals.
Their children are grown and they may have significant assets built up in their home and bank accounts. Perhaps they have a pension or retirement account that is generating income for their spouse.
They do not want to leave their loved ones with a large funeral bill. The solution for them is to take out an affordable burial insurance policy.
Older individuals typically steer towards burial insurance because of cost. It is not easy for elderly people to get other types of life insurance at an advanced age.
Insurance companies know they are biologically closer to death and raise the premiums to excessive amounts. Burial insurance is a compromise because it pays for end-of-life expenses but does not break the bank either.
Recapping Our Guide to Final Expense Life Insurance
The cost of death continues to rise to concerning levels. A funeral and memorial service may cost well over $10,000. Very few have that type of money lying around.
Instead of burdening your surviving family members, burial insurance provides you with a practical solution. If you enjoyed this article about final expense life insurance, check out our blog for more great content.
