Buying Final Expense Life Insurance is Smart for Seniors!
Comprehensive financial planning includes mortality. We all are going to die whether we like it or not. Planning for the final curtain includes writing a will and establishing medical powers of attorney. Anyone, especially a senior, should also take a look at burial expenses and the insurance available. The reason is straightforward: your funeral costs can be thousands of dollars. Cremation, while it sounds cheaper, is also going to be an expense that will eat into the assets of the estate. Folks try to mitigate burial expenses by having a term life policy. It sounds like a good idea, but it might not be.
Term Insurance Has Its Limits
We are not saying that term insurance policies are all bad, but when it comes to final expenses for seniors, this type of insurance might not be the best. The reason is simply the term of insurance coverage. Term insurance policies may have a point where coverage is no longer available. For example, after a certain number of years, there is no benefit payout and the policy expires. That is a problem if you happen to outlive the expiration date of the life insurance policy.
We suggest that when it comes to final expenses, it is better to think of a different form of insurance. Final expense life insurance is perhaps more in line with what you want.
The Basics of Final Expense Life Insurance
This is a life insurance policy that covers the expenses of the funeral and burial services. The final cost may be more than you realize. For example, people want to be cremated, but they want their ashes spread over someplace that is hundreds of miles away. Final expense life insurance can cover the cost of travel. There are several probate fees and expenses relating to a person’s death. Final expense life insurance can cover those costs.
This type of policy is made payable to the beneficiary and not a funeral home. While you can purchase it as a term insurance policy, you can also have a whole life policy that covers final expenses.
The premium is set. There is not an increase in the cost of the policy and, although you may pay a higher premium if you’re older, that premium is what you will pay for the rest of the time you own the policy.
There is no need for a medical examination and even people in poor health may purchase this type of insurance. You need to remember there is ordinarily a waiting period of 24 consecutive months before the full benefit is paid out. Depending on the policy, you may get part of the benefit if you die before the waiting period ends and your beneficiary could get back all the premium you paid.
Think Of Senior Final Expense Life Insurance As A Final Investment
You have spent your life investing hard-earned dollars for the benefit of your loved ones. Food, housing, education, and health are all things that you put aside money for them. It is an excellent idea to minimize any expenses the estate handles.
All of the expenses surrounding a funeral will add up to a hefty price. It is a smart move to have a final expense life insurance policy cover those expenses. Any funeral is going to cost thousands of dollars, and the policy will cover the invoices. Your beneficiaries may be counting on the estate distributions to cover college tuition, medical bills and other large expenses. The investment in a final expense life insurance policy can be that one last financial decision you make to protect those whom you care about the most.
We want to help you make that critical decision. Finding a policy that has all you need is not easy if you do it yourself. Let us provide the information you need to make the right choice about that funeral and last expenses coverage.
We can make some suggestions but, more importantly, we will listen to you. What you want to have in the coverage is what we will research. The insights we give will lead to a better decision on what policy to buy. You can trust our professionals to help you. Please feel free to contact us at your convenience. We look forward to working with you.
Gary P. Cubeta
(Serving Americans In All 50 States)