Delving Into Final Expense Insurance

Final expense insurance has the ability to save the loved ones of the insured from a lot of stress and money in the event of his death. As the costs associated with funerals are increasing, initially even though the family members grieve about the death of their beloved member, the next thing they get into their minds is the worry about paying and planning for the final arrangements. In such a situation, if the deseased individual has already covered himself with final expense insurance,the family members can be protected from spending huge. This coverage is different from the other types of traditional life coverage and there is also a difference in the age of people, who can apply and the amount they are ready to pay.

Final expense Vs. Life insurance: Generally the best term life insurance will cost more as it will have higher face value. On the other hand, funeral cost coverage generally has a much lower face value as the main purpose behind this type of policy is to cover the cost of final arrangements of people. A regular coverage generally ranges between 2,50,000 to 10,00,000 US dollars. On the other hand, final expense can be typically purchased at the cost of 5000 to 50,000 US dollars.

Who can purchase? Anybody can purchase final expense coverage. However, it is purchased generally by people, who think that they are nearing their end and who do not already have the best term life insurance coverage in place. Most of the final expense policies are underwritten without the nominated insured submitting to a health examination. Even though, these no-exam policies can be of higher rate, they are still less expensive to procure as compared to regular coverage just because of the fact that it has a low face value.

How much to purchase? This can be discussed by an individual, who is thinking that his end is nearly with the beneficiary. He can also talk to his family members about the type of funeral he is expecting. He can also inquire about the same to the funeral director, who will be in a position to give an idea about the different associated expenses like catering, flowers, a burial plot, a casket and a headstone and any special arrangements to be made like police escorts. In general, the cost of funeral might be something between 1000 to 10,000 US dollars. There are chances that the cost may a little higher as well.
By Michael Garcia