What is Final Expense Insurance?
Final expense insurance policies have a lower face value than standard life insurance plans. Clients can purchase a final expense insurance policy with a coverage limit of several thousand dollars—enough to pay for a basic funeral service, casket, burial, and cemetery plot. Term or whole life coverage generally begins at $10,000, which is an amount that may exceed one’s needs.
Final expense insurance will ensure that the costs associated with funeral and burial costs are covered and not left in the hands of loved ones, which limits the stress and financial burden put on your client’s grieving family. While a traditional life insurance policy can provide funeral and burial coverage, traditional coverage is not the answer for everyone. If your client cannot qualify for a standard life policy because of a pre-existing medical condition, or if they have other means of providing for their loved ones after their death, final expense may be the right fit.
Losing a loved one is an overwhelming experience, and the stress of making countless decisions can cause your client’s family to overspend if they don’t know what to expect. By taking the first steps to plan ahead, your client can provide his or her loved ones with a helpful listing of detailed information that will someday be necessary for them to use. While it’s not easy for anyone to think about death, it’s better to prepare your client with answers to difficult decisions that will need to be made. This way, it is easier on the family.