A final expense policy is intended to help with some of the financial obligations that can appear in the later years. They are also referred to as a funeral or burial policy and are typically a whole life product. There are many benefits to having a final expense policy:
- You may have outlived their term policy. Many term policies are 10, 20 or 30 years and, depending on when your customer started their policy, it could have expired. Without any life insurance coverage, a small benefit policy could help address any possible expenses they later accumulate.
- According to the National Funeral Directors Association, the average cost of a funeral is $7,360. This cost is for basic items and is impacted by what region the customer lives, type of cemetery plot, cemetery requirements such as a vault, type of funeral service, and other options. A final expense policy can address not only the basic cost but the cost for other items, too.
- There may be medical expenses and deductibles that accrued prior to death. Even a small benefit policy can help ease the potential financial burden of these costs by paying some, if not all, of them.
- Many of these costs can be paid for by the life policy rather than be taken out of the estate. As a result, this can help protect the assets and other items they want to leave to family, friends or charities.
A 50-year-old male that qualifies for Preferred Non-Tobacco rates could get a $50,000 Traditional Whole Life policy for less than $2.50 per day. $50,000 could go a long way to help preserve the estate. See how affordable a final expense policy can be – contact our office today for a Proposal! |
