Did you know the average cost of a funeral or celebration of life service is between $7,000 and $12,000? Many people don’t realize the cost is so high, and unfortunately, don’t have the funds saved to help pay for a service.
If you’re considering skipping a service altogether, you may want to reconsider. Funerals and other types of end-of-life services can help your family and friends grieve your loss. It gives them a chance to remember you and celebrate your life and the impact it had on them. Even though you won’t be there, services, burials, cremation, and other expenses can help bring closure and healing to those you love.
Fortunately, a final expense life insurance policy can help cover these costs. You can use this benefit to help cover:
- A funeral or celebration of life service
- A casket
- Cremation processes
- An obituary
- Catering for an event
- Medical bills
- Nursing home bills
- A small legacy for loved ones
One of the major benefits of a final expense policy is that it can be used for almost any need following your passing. Even though most people use it to help pay for end-of-life costs, you can also offer a small inheritance to your loved ones, help pay off a mortgage or other debt. In addition, a final expense policy is relatively inexpensive compared to other types of life insurance policies, and especially considering the sizeable death benefit that is offered.
Here are 3 other key reasons we believe a final expense insurance policy is valuable.
Reason #1: It's easy to qualify if you're older or in poor health, and policies are too expensive.
If you’re older or in poor health, and don’t have a life insurance policy now, you may want to consider buying final expense life insurance. In fact, final expense insurance often is the best choice for people who don’t qualify for other types of life insurance.
It’s also helpful if you no longer have life insurance with an employer and your savings isn’t large enough to support your loved ones. With a final expense life insurance policy, you know your loved ones will have cash available to help pay for your end-of-life expenses.
Reason #2: It builds a cash value that you can borrow from.
Final expense insurance is a type of whole life insurance. This means it lasts for your entire life (unlike term life insurance) and accrues a cash value over time. If needed, you can borrow from the cash that has accrued. You may do this if you need to pay for unexpected medical bills or other debts, especially if you are aging.
Just remember that the amount you borrow from your policy will be deducted from your death benefit’s payout. That said, it’s nice to know you have access to extra cash if you’re in need.
Reason #3: It's guaranteed, the benefit amount will never change, and the policy can't be canceled.
A final expense insurance policy is a sure thing, meaning you won’t be denied if you apply, the coverage amount won’t change, and your policy can’t be canceled. This security can bring you peace of mind, especially if you’re aging and without other life insurance, or if your health is declining. If you’re denied a term life policy, you may want to rely on a final expense policy to cover your bases. Also, if your health worsens over time, you can trust that your policy will remain in place.
What you should know
If you already have a final expense insurance policy now, you’re in great shape. You made a smart choice to help support your loved ones after you are no longer there. If you don’t, you may want to consider buying final expense insurance. It could be a wise choice if your budget is tight or if you’re at risk for being denied.
In short, think of final expense insurance as a safeguard. It’s a policy that you can trust to help protect your loved ones—and it’s guaranteed to be there no matter what happens to your health.