Insurance companies choose whole life insurance since it is statistically unlikely that you will outlive an entire life coverage. There are various advantages to using a whole life policy as your final expense insurance:
- The death benefit is guaranteed as long as payments are paid.
- The death benefit is not subject to taxation.
- The policy builds up a cash value that can be borrowed against.
- Your death benefit cannot be diminished unless you borrow against the policy’s cash value.
- The premium on many whole-life policies will never increase.
- The coverage will not expire when you reach a certain age.
If you apply for a final expense coverage, the insurance provider will not require you to take a physical or allow access to your medical information. You will be required to answer questions regarding your medical history.
What is covered by final expense life insurance?
Most people who apply for a final expense coverage seek money to cover costs associated with the sort of burial or cremation they prefer, which can include:
- Services provided by funeral directors
- Fee for the funeral home
- Costs of a memorial ceremony
- Embalming
- Cremation of Caskets
- Plot for Urn Burial
- Vault for burial
- Flowers for a Headstone Obituary
While it’s convenient to have a check in hand to cover these costs, the policy’s beneficiary can spend the death benefit however they see suitable. They are allowed to spend it to pay off credit cards, make a charitable donation in the deceased’s name, or take a vacation – whatever they want.
Some people purchase final expense insurance without the intention of using it to cover their final expenses. They already had life insurance and had it set up for final expenses. Their primary motivation for purchasing final expense insurance is to give additional protection to their loved ones.
