Final Expense Life Insurance

Final expense life insurance, also known as burial insurance, is a type of life insurance policy designed to help cover the costs of funeral expenses and other end-of-life expenses.

 The policy is typically purchased by seniors or individuals with pre-existing health conditions who may not be eligible for traditional life insurance policies. 

 Final expense life insurance policies typically have lower death benefits than traditional life insurance policies, ranging from a few thousand dollars up to $25,000. 

They also have simplified underwriting, meaning that there are no medical exams or extensive health questions to answer, making it easier for individuals with pre-existing conditions to qualify for coverage. 

Did you know that some final expense life insurance policies offer a "living benefit" option that allows the policyholder to access a portion of the death benefit while they are still alive if they are diagnosed with a terminal illness? 

This can help provide additional financial support for medical expenses and other end-of-life costs. 

However, it's important to note that accessing the living benefit will reduce the overall death benefit available to beneficiaries upon the policyholder's death. 

Mary is a 68-year-old retiree who lives alone in a modest home in a small town. 

She has a few health issues, including high blood pressure and arthritis, and she worries about burdening her adult children with the cost of her final expenses. 

She doesn't have a lot of savings set aside, and she knows that funeral and burial costs can be expensive.

After doing some research, Mary decides to purchase a final expense life insurance policy with a death benefit of $15,000. 

She pays a monthly premium of $75, which fits within her budget. The policy includes a living benefit option, which gives Mary the peace of mind of knowing that she can access a portion of the death benefit if she is ever diagnosed with a terminal illness.

A few years after purchasing the policy, Mary is diagnosed with advanced lung cancer. She undergoes treatment, but her condition worsens, and her doctors estimate that she has less than six months to live. 

Mary decides to access the living benefit option of her policy to help cover her medical bills and make arrangements for her final wishes. 

She receives $7,500, which allows her to pay off her outstanding medical bills and pay for a simple cremation and memorial service.

When Mary passes away a few months later, her adult children are grateful for the final expense life insurance policy, which covers the remaining costs of her cremation and memorial service, as well as outstanding bills and other expenses. 

The $15,000 death benefit helps them honor their mother's wishes without having to dip into their own savings or take on debt.