Final Expense Plans

It’s a good idea to discuss your final expense policy with your loved ones, or whoever will be your policy’s beneficiary, as well as your wishes for the type of funeral you would like to have.

Different from long term insurance, hospital indemnity plans, or annuities, final expense plans are designed to cover the costs of a funeral and memorial service. These plans are often purchased by those near to death without a traditional life insurance policy in place. It is not medical insurance or any other type of Medicare health insurance but can often be confused with them. The final expense plan is typically much cheaper than traditional life insurance, since it is designed only to cover the final expenses associated with a memorial service and burial.

Anyone can buy final expense insurance. Most often, however, it is purchased by those who are near to death and do not already have a regular life insurance policy in place. Many final expense insurance policies can be underwritten without the designated insured submitting to a medical exam. These no-exam policies contain higher rates for the insurance, but are still less expensive to buy than regular life insurance because of the low face value of the policy. Final expense insurance is written with a much lower face value and is intended solely to take care of the cost of a person’s final arrangements. A regular life insurance policy ranges from $250,000 to $1,000,000, while a final expense policy is typically purchased for $5,000 to $30,000.

It’s a good idea to discuss your final expense policy with your loved ones, or whoever will be your policy’s beneficiary, as well as your wishes for the type of funeral you would like to have. If you are helping someone else who is near death buy a final expense insurance policy, you may want to consult with a funeral home about the type of final arrangements you would like to make. The funeral director should be able to give you an idea of the funeral’s cost including the funeral service, flowers, catering, a casket, a burial plot and headstone and any paid funeral procession arrangements such as police escorts. In general, funeral costs can range from $1,000 to $10,000 or more. The more you can predict your costs, the less surprises you will have in such an emotional time of life. No one likes to think about what will happen after they are gone, but don’t forget about the people who will be left behind and will need to take care of your final arrangements.

Buying final expense insurance will help your loved ones pay for your funeral costs. To get started, compare your options between final expense insurance and life insurance, decide if you’d like to submit to a medical exam or not and determine how much final expense insurance you should buy. We can help guide you through this discussion and process if you would like further explanation. You can call us toll-free at 1 (888) 505-5452, Monday through Friday from 9:00 a.m. to 6:00 p.m. (Pacific) and speak with a state-licensed agent about Final Expense or Life Insurance. Anyone without significant life insurance coverage who is worried about burdening their loved ones with the expense of a funeral should consider purchasing a final expense plan. Some of these plans can be granted without a medical exam, although foregoing the exam can result in higher rates.

No matter which final expense plan chosen, they can typically be purchased for anywhere from $5,000 to $50,000. If you or your loved one has already made arrangements for their memorial service, it is a good idea to see if the final expense plan will help cover the costs. Although some Medicare health plans do come with death benefits, they are not final expense benefits, which are important to consider whenever you compare Medicare plans. Social Security allows seniors to set aside a burial fund but does not cover final expense costs. Even if you have a burial fund and Medicare insurance, it is not usually enough to cover the expenses of a memorial service, which can range from $1,000 to $10,000. This is why it is important to consider a final expense plan when choosing Medicare health plans. To learn more about final expense plans or to compare Medicare plans, contact one of our experienced professionals to help you at no charge.
Source: http://www.socialsecurity.gov/ssi/spotlights/spot-burial-funds.htm 

Seniority Insurance Brokerage is located in Aptos, CA, and works with clients across the entire state of California, including Santa Cruz CA, Monterey CA, Carmel-By-The-Sea and Watsonville CA.