Final Expense Leads

About Final Expense Insurance Plans

Final Expense Insurance policies are policies that provide complete life coverage in addition to providing for beneficiaries and dependents on the demise of the primary policy holder. Contrary to burial insurance policies, these plans can also be used to pay off any outstanding credit card debts or to fund any expenses outside of the funeral expenses. One can even leave the claim pay outs of the policy as inheritance amount to one or more dependents. On the other hand, insurance policies like burial insurance strictly cover only the cost of the funeral/burial and nothing more. Burial insurance plans are much more flexible in the sense that these policies can be written to suit your needs. The primary policy holder can determine the amount of coverage he wants to opt for. As with burial insurance, final expense insurance policies do not require the policy holder to qualify any medical exams or medical eligibility criteria. All that is required to be done is filling out a short application form. Thus final expense insurance policies cannot be denied to applicants.

What These Plans are Cover?

Final Expense Insurance policies can be used to cover for expenses related to burial plots, coffin expenses, headstone markers, engraving on the headstones, any funeral services including organizing of a wake, transportation and hearse services, ministerial fees, any legal fees, any final hospital or doctors' bill settlements as well as any outstanding loan payments, debts including credit card debts, vehicle loans or mortgages.

However, because this makes burial Insurance very beneficial without the added burden of eligibility criteria, these come with a caveat. Policy values for final expense insurance policies are significantly lower when compared to traditional life insurance policies like whole life insurance or universal life insurance policies. This is because for the most part, final expense insurance plans are designed to cover the burial expenses primarily and then take care of any unpaid debts so that the policy holder's family is not suddenly financially burdened. However, unlike traditional policies, the intent here is not to provide for the family after the death of the policy holder. As a result, because the policy value is lower, the premium payments or purchase value of the policy is also significantly lower.

About Advisers

Many financial advisers would advise people to sometimes go in for both the traditional policy as well as the final expense insurance policy. This is upon death of the policy holder, traditional insurance take about 2-3 months to get processed and for the claim pay-out to be given out. However, it is mostly likely that funeral proceedings would need to happen within 48 hours of the demise making it difficult for the family to come up with the much needed cash in a short span of time. Since final expense insurance policies pay out instantly, this helps ease the burden on the family members. If the only insurance available is traditional life insurance and if family members need to wait for the claim pay-out to happen, then the funeral home would require additional fees to compensate for the waiting period. With final expense insurance policies, there is no waiting period. Similarly, in the 2-3 months that it takes for the life insurance police claim pay-out to come through, if there are mortgage payments to be made, final expense plans can help with those payments.

That being said, for a steady source of income to help ease your family's financial burden down the line, it is always recommended to go in for traditional life insurance like whole life or universal. Talk to a financial adviser today to see how best to combine both these policies in order to plan the best financial future for your family!