What are final expense policies? They are simply whole life insurance with a fairly small face value. The death benefit usually ranges from a couple of thousand dollars to a couple of tens of thousands of dollars. Insurers sell them to older people as a way to plan for expenses associated with the time that a loved one passes away.
Here is a very common situation. Consider the example of a man who owns a small law firm he wants to leave to his daughter who is also a lawyer. He also has two sons, but they decided to become teachers, so they have no real interest in running a law firm. But the man wants to be fair to his sons, and he knows the law firm is his largest asset.
Probably the most common type of senior life we see advertised is a smaller face value whole life policy. Insurers call these policies burial or senior care usa final expense insurance. They usually have death benefits from a couple thousand dollars to twenty-five thousand dollars. They are meant to help the insured person’s family pay for final expenses. These could be things like funerals, medical bills, debts, and travel.
Lots of older peopple just want a way to leave some wealth to their spouse or children, and this is one traditional use of coverage. Most of the time the proceeds from the death benefit will not be taxed. And since most of us just pay a monthly premium, it can be an affordable way to plan for an estate transfer.
Each policy will have named beneficiaries. These are the people who would be expected to handle funeral arrangements. They can use the proceeds of the policy in any way they choose to use it. For example, Mr. Jones may purchase a $20,000 burial policy. He could name his daughter, Sally as the beneficiary. When he passes away, she might use $10,000 to pay for his burial and funeral. She is free to use the rest of the money in any way she wants. So Mr. Jones could make sure that his funeral arrangements are paid for, and he can also leave his daughter some money.
Make sure you understand what you a buying. How much coverage will you have, and is that benefit immediate or graded? It is fairly simple to compare premiums and plans with online quote forms.
In addition to these routine costs, there may be other financial bills to handle. Their could be medical expenses or other debt to settle, a house to sell, or pets to care for.
It was not only the last thing on my mind but truly the last thing I wanted to deal with at that moment so I’ve decided to do a little research on how to keep my family out of that mess when my time comes. For that, I’ve found the one simple solution and it’s known as final expense insurance. Truly, final expense insurance is what I have been seeking. I have it organized to cover all my current debts, which I hope to eliminate before I pass, and to leave small bequests to those that stick around after I’m gone. I feel great knowing that my family will have less stress.