Life insurance is a broad category of policies. Many people purchase a life insurance policy as a way of planning for the future and making preparations for what will occur after their passing.
Understanding Final Expense Insurance
Final expense is a type of insurance policy that provides a death benefit to the named beneficiary. This death benefit is typically smaller compared to other types of policies. While there are no stipulations about how the individual spends their death benefit, many people use it to cover end-of-life costs. Other costs can include things such as medical bills and credit card debt.
If you think that you may be leaving behind various costs, then consider if a final expense policy is the right choice for you. Many people find that the monthly premiums for final expense policies are very affordable. Because this type of policy is so accessible, it’s a great option for those that want to provide a small sum for their beneficiary and get some peace of mind that they’ve made preparations for the future.
The Various Policy Types
There are different types of final expense policies. Understanding these different types is important if you’re considering purchasing a policy. You’ll need to choose between simplified issue final expense and guaranteed issue final expense.
Guaranteed issue final expense policies are relatively easy to get and you won’t need to be worried about being turned down for the policy. Simplified issue is another policy option that you should consider, especially if traditional life insurance isn’t the right choice for you.
Which Policy is Right for You?
Which policy is right for you is an incredibly individual decision. How large you want the policy to be will most likely play a role in your final choice, so keep your budget in mind and how much you can afford to spend monthly.
One of the positive aspects of final expense is that you can purchase policies later on in life. Because there isn’t such a rush as with term or whole life insurance policies, you can take your time and make sure that you’re selecting the right policy for you. If you’re unsure how to do this, it can be helpful to speak with an insurance professional. We’re always here to answer your questions and make sure that you get the support you need to make the right decisions when it comes to insurance.