Final Expense Life Insurance.. Is It For You?


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Life Insurance, for some reason, is a taboo subject. The loss of a loved one or the idea of leaving our loved ones behind is not something we like thinking about. When factoring in life insurance for your life there are several things to consider. First, in its simplest concept, most types of insurance are about protecting the financial burden of different types of losses. Whether it is a car accident, a house fire, or the loss of a life; these events typically result in unforeseen expenses.

There are many, many different types of life insurance policies. The two most basic types are a Term-Life Policy and a Whole-Life Policy. A Term-Life Insurance policy is easiest to be thought of as temporary insurance. If an individual outlives the policy, nothing will be paid out. A Whole-Life policy, on the other hand, protects an individual up to any. They each have different benefits, which I will write more on in the coming days. Today, however, I wanted to address a certain type of Whole-Life Insurance Policy: Final Expense Insurance.

Final Expense Insurance was originally written to cover funeral expenses for individuals. The average funeral in the United States is estimated to cost between $7,000 and $10,000. These policies gave people the option to budget accordingly for an insurance policy, which subsequently paid out upon their death. Due to the relatively low face amount of the policies, underwriting is minimal, and policies can be written up to age 85 in some states.

In recent years, Final Expense policies have become a great alternative to individuals who cannot obtain life insurance through traditional markets due to age, health, or high costs. Some Final Expense policies are written with as little as an underwriting interview.

One last item that is often overlooked with life insurance, is that the benefits are paid out to the beneficiaries tax-free. Many individuals purchase Final Expense policies to both pay for their funeral and to be left for their family tax-free.

The biggest mistake I see with Life Insurance is people waiting too long to purchase. Since the subject is taboo, people often do not even think about it until there is a trigger. These triggers often include illness, a death in the family, or worse a funeral being paid for out of pocket. I encourage those reading to have the conversation with their families. Have it with parents. At the end of the day, a Life Insurance policy can minimize the financial burden with the loss of a life. Planning for the worst can help protect you and your family.

BuffaloQuotes.com has agents which represent several Final Expense Life Insurance Companies. If you’re interested in a Life Insurance Quote: CLICK HERE