What You Need to Know About Final Expense Insurance
When it comes to final expense insurance, you need to be a smart shopper. That goes for any insurance really. Whether you are just exploring your options, adamant that you need insurance, or if you are purchasing now, doing your research and finding the right final expense agency will make that you are well on your way to getting the right coverage and policy.
It is obvious that when you are making a decision as big as this it is best to do your homework and make sure that you know all of the ins and outs before you are locked into a contract and payments. Luckily, this article can help you with your research.
What is final expense insurance?
The first thing we need to know and understand is what final expense insurance actually is and what it entails. Final expense insurance is a final and permanent whole life insurance policy that will help cover your end-of-life expenses as well as your funeral expenses. Other expenses it can cover may include medical bills, housing costs, legal fees, and any other expenses left over after your passing.
You may not recognize the term final expense insurance, and that may be because of its many names. Perhaps it has been referred to as funeral insurance or burial insurance. Either way, it is still technically the same thing minus a few different variants.
What will I be asked when I apply?
As with any insurance policy, there will be questions that need to be asked and you should be prepared to answer them so that the whole experience can be as seamless as possible. Many agencies will first ask you questions that will immediately disqualify you and then eventually work their way up to questions that aren’t as severe if answered non-adversely. Despite what you may think, these questions aren’t always medical-related, but most will be.
The questions will usually follow along these lines but may also be expanded on depending on your answer:
- How old are you?
- How much do you weigh?
- Is there a history of illness in your family?
- What is your lifestyle like?
- Have you ever, or do you use drugs?
- Have you ever, or do you drink alcohol?
- When were you born?
- Do you smoke cigarettes?
- What is your occupation?
- What is your gender?
- How much do you earn annually?
- You may also be asked for a full medical history
What does final expense insurance cover?
The main motivation for most people looking for final expense insurance is that they will have their funeral covered. Which is completely understandable, because no one wants to leave their heartbroken family with even more debt and final strain. Your family will be struggling enough with the death they have experienced, so worrying about money is the last thing you want for them.
However, there are also plenty more bills left to be paid after we die, funeral costs aren’t the only problems to be faced. There are professional fees, legal fees, medical bills, housing costs, credit card bills, extensive debt, household and living costs, and even costs for clearing out your house. Luckily, final expense insurance policies are specifically designed to cover all of those things and more to make sure that your family is well cared for once you have passed away.
This way, you won’t leave your family behind with a financial burden, instead, they can remain financially secure.
Beneficiaries
You may be wondering who you can name as a beneficiary for when you pass away because someone has to be in charge of your death benefit, and you want to choose someone responsible and respectful. However, there are legal entities to consider when it comes to naming your beneficiary. In cases as such, it is best to seek professional advice, as there is a lot of red tape when it comes to naming beneficiaries.
A beneficiary is someone that takes control of your death benefit when you pass away. They then arrange for how the money will be used and how they will effectively use it for your end-of-life expenses which is why it is so important to choose someone you trust. Choosing the wrong beneficiary could get you into strive and it will make it very hard for your family.
Final expense insurance is the perfect way to make sure your funeral expense covers are all cared for and covered after you have passed so that your family can grieve and grow without excess financial pressure. Considering it isn’t just for you, but also for your family and their livelihood as well as their financial security. Prices continue to rise for funeral costs, so getting in now is your best bet so secure financial security and safety for your family when you are gone.
With all of these things in mind, you are well on your way to choosing the right final expense insurance.
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