Of the many ways that seniors can invest for the future of their families, one of the most interesting is final expense insurance. This is different than burial insurance for the elderly, and the differences will be considered so that the best-informed decision can be made on its purchase.
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What is Final Expense Insurance?
It is designed to pay the bills that are still owed after you pass away. This includes paying for the funeral and accumulated medical bills that have built up over time. Final expense insurance differs from traditional life insurance plans in that it is designed specifically to pay off all expenses associated with your passing.
Because the final expense insurance is only intended to pay off certain expenses, policies of this nature rarely go above $20,000. Therefore, their use as investment options must be carefully considered before taking out a policy.
How much burial insurance do you need? Read here.
Investing Benefits of Final Expense Insurance:
The benefits of investing in this form of insurance start with your current financial situation. If you already have whole or term life insurance, the more than covers final expenses, then you do not need final expense insurance.
However, if you do not have a traditional life insurance policy and your assets are not sufficient to cover the average $9,000 for funeral expenses and any additional medical expenses associated, then final expense insurance becomes a viable option. In addition, investing in this type of insurance offers additional benefits.
Protects Financial Status: By investing in final expense insurance, you are protecting other assets that the family can use during their time of grieving. This means more money is kept in your estate which improves the overall financial status.
Low Premiums: The premiums of final expense insurance for seniors is lower than traditional life insurance plans. This is mostly because the benefit levels are lower, but also because the focus is on paying off expenses such as the funeral and related medical issues.
Peace of Mind: By taking care of your final expenses, you can concentrate on other aspects of your finances. By addressing how your investments will be protected by using this insurance route, you allow your family to protect their financial interests in case the worst should occur.
Is Final Expense Insurance Right for You?
This will depend in large part on your current financial state. This type of insurance serves as a good middle ground between burial insurance which only covers funeral expenses and term or whole life that provides extensive benefits that may pay off debts or provide for a legacy for your family. To have this type of insurance means that your estate will be protected from the costs of the funeral and associated medical expenses.
Besides, the insurance itself is not much more expensive than burial insurance which makes it a exquisite investment for those who can afford the policy. It’s simple, straightforward, and addresses a need which is often overlooked by many who do not plan for their families after their demise.