What is Final Expense Insurance & How Much Should You Have?

by Michael on March 16, 2009

in Final Expense,life insurance

In the very simplest terms, final expense insurance is life insurance. Usually, but not always, it is Whole Life insurance. However, although technically what I just told you, it really is different. How so?

The paying of death benefits can take, in most states, up to six months. This does not mean it does take six months, but it may. The death claims I’ve handled have not taken this long. I once was able to get a million dollar death claim paid in a week, but I digress. The fact is it may take up to six months (and I have heard stories where it did) … and the reason you have final expense insurance is to … well take care of final expenses. It’s not like we can wait!

One advantage Final expense policies have over regular life insurance is that they are designed to pay quickly. Funeral homes know this and will often take an assignment of benefit, since they know they will not be waiting six months to receive payment for their services. For this reason (and as I get older and have had to deal with this issue personally) I recommend the purchase of a final expense policy. It is amazingly affordable.

In addition I recommend writing down one’s wishes. This can be done electronically where any funeral home can get the information or on a paper form. I offer both options, free, to my clients.

What can final expense insurance be used for and how much should a person have? Here is a partial list, cemetery plot, funeral home charges, cremation, casket, bills, clothing, opening and closing the grave, death certificates, newspaper announcements, bringing family far away (when they cannot afford it on their own), medical bills, short term living expenses for our surviving family members (until other money comes in) and many other expenses we often do not think about. We may have some of these things paid for, but others we may not. It’s easy to see that $5,000 would be on the low side, with many needs exceeding $10,000 – all money needed virtually immediately.

Final expense insurance is generally easier to qualify for than other types of insurance. I personally offer several choices – utilizing one company or another depending on a persons age and health.

The really good thing is that it takes generally less than an hour to get this necessary business dealt with, and thereby help our family immensely when our time arrives.

What can I do for you? I arrange for you what your desires are, and I provide accurate information for you to decide what you need. I’m here to help. Call me or email me and let me show you what is available for you.

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