Importance of Final Expense Whole Life Insurance

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When you’re planning for your senior years, it’s standard to think about retirement plans, social security and Medicare. However, a sometimes overlooked priority is life insurance, especially for those final expenses that come after a death. 

No one wants to leave their loved-ones burdened with having to deal with unpaid medical bills or funeral costs such as a burial plot, cremation costs, a casket, embalming, a hearse, and so on.

That’s why a final expense whole life insurance policy is worth considering if you want to protect your family from unwanted debts.

Let's explore this in more detail...

What's Final Expense Whole Life Insurance?

Final Expense Whole Life Insurance is a policy that provides coverage for bills left to your loved ones after your death such as, medical bills and funeral expenses.

We all know that even the simplest of funerals can cost thousands of dollars.  The average funeral cost  is between $8,000 and $10,000, so it’s easy to see the importance of final expense whole life insurance.

How Does Final Expense Insurance Work? 

Most final expense whole life insurance applications are simple and easy to complete. Typically there are no medical questions or lab tests required which means you can get covered almost immediately after applying for coverage if approved.

Final expense insurance policies are typically designed for people who, because of age, may not qualify for other life insurance products or may have an underlying health condition that could prevent them from getting coverage otherwise.

How Much Are We Talking?

The price depends upon your age. For example, if you start your policy when you’re 70, the premiums will be higher than if you take out such a policy when you’re 50. This is because all insurance companies are taking on greater risk when they insure an older person.

Since every company offers different available face amounts and pricing, the best way to establish the precise cost of your final expense whole life insurance is to do a bit of research and get your quotes online to see what product best fits your needs and budget.

Pros and Cons of Final Expense Whole Life Insurance

As with most things, a final expense whole life insurance policy has both pros and cons. Here are just a few to consider:

Let's start with the benefits:

  • Provides lifetime coverage
  • There’s no medical examination or health questions asked
  • Price will never change
  • The death benefit paid to beneficiaries is tax-free
  • You can cancel the policy at any time with no fee

Now for the cons:

  • If you don’t keep up with the premiums, your loved ones won’t receive any money.
  • The older you are when you start paying in, the bigger the premiums. 
  • There may be a modified death benefit if death occurs in the first 2 years of owning the policy. Make sure you always check the policy details.

Hopefully, this quick pro/con list will help you to evaluate whether this insurance is the right move for you. 

Is There A Waiting Period? 

Providing your application is approved, and the insurance company has taken the first payment; typically, you immediately receive coverage. Remember to check the date from which your policy becomes effective once you receive all your paperwork. 

Are You Ready to Protect Your Love Ones?

So hopefully, you now know why final expense whole life insurance is essential when protecting your family and loved ones.

It’s an important aspect of financial planning, particularly if you don’t have a life insurance policy that's large enough to cover final expenses after your death. 

It’s never too late to get the life insurance protection you and your loved-ones deserve and it’s never been easier. Click here to quote and buy today!

 

 

Our content is created for educational purposes only. This material is not intended to provide, and should not be relied on for tax, legal, or investment advice. Vantis Life encourages individuals to seek advice from their own investment or tax advisor or legal counsel.