Final Expense Insurance - What And Why?

By Author: Steve Jarvis
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Most people see the importance of protecting their homes in case of fire and protecting their cars in case of a crash by purchasing insurance coverage. Even if some folks did not want to spend the money on the premiums, they are required to do so by their home mortgage companies and by most state government for their cars. You might be wondering how this relates to final expense insurance.

Well, protection for a person's life, or more correctly, death is not mandated. Yet, you might pay auto premiums or homeowner premiums for 40 years or longer and never have a claim. We all know, though, that there is one type of insurance that definitely will be used sometime ... final expense insurance at your death.

Final expense insurance is permanent life coverage that you purchase to pay for the various costs associated with your death. Funeral expenses can include cemetery plot and fees; grave marker; funeral preparation such as embalming and cosmetology; flowers; visitation and viewing; funeral service; hearse and acknowledgment cards. Funeral expenses typically run between $7,000 and $10,000.

In addition to ...
... funeral expenses, there may be additional financial burdens that your heirs could inherit if you do not have final expense insurance. The state in which you live wants to take its share of your assets by assessing probate fees. Of course, if your heirs use an attorney, the attorney will want to be paid. Many people will leave doctor and hospital bills and, of course, most of us have other outstanding debts such as credit cards and car loans. Final expense insurance can be used to make your passing a little easier on your remaining family.

To purchase final expense insurance, you are not required to have a physical exam or be stuck by a needle. You simply answer a few health questions as well as provide personal data including your designated beneficiaries. In fact, Benefit House works with carriers for which you don't even need to meet or talk with an agent. You simply go online to BenefitHouse and run a final expense insurance quote. You then complete the application online and you are done.

Many final expense insurance policies are available in face amounts of $2,000 to $25,000, although Benefit House does work with one final expense insurance carrier that will offer up to $50,000 of coverage depending upon your age. Each insured is able to tailor a policy to meet his or her needs. In some cases, though, final expense insurance is available in higher face amounts.

Premiums remain level for the life of the policy and the policy usually accumulates cash value within it. However, do not purchase a final expense insurance policy with the thought of building cash value as a saving account because the policy's ultimate purpose is to pay out at one's death. Plus, if you plan properly, the benefit paid to your heirs at your death will be income tax free.

All in all, if you care about your family and do not wish to burden them any more than you need to at your passing, final expense insurance should be seriously considered as part of your planning process.

Author: Steve Jarvis, President of Benefit House Insurance Services.

Steve Jarvis is a licensed independent insurance agent with over 28 years experience in helping people to meet their final expense insurance needs. His insurance services company BenefitHouse has partnered with Alto Web Solutions in writing this article.