Final Expense Insurance: Good Buy or a Waste of Money?

Final expense insurance or burial insurance as some refer to it has been around for quite a long time. It seems though in recent years the popularity of final expense insurance has grown by leaps and bounds. Final expense insurance is more commonly known in the insurance industry as whole life insurance which does exactly what the name implies. As long as the premiums are paid timely each month the policy will continue for the life of the insured. Final expense is very easy to explain to a potential client, and very easy to understand as a potential client. Policies usually range from $2000 to $50000 and can be used for just about anything including burial costs, paying off a vehicle that you may want to pass on to a child or grand child or closing out any outstanding bills you may leave behind. A very attractive feature of this type of insurance is a wide variety of insurance companies offer burial products and can cover people with significant health issues such as HIV, cancer, or certain types of heart problems.

Now, like any investment, burial insurance may not be the right type of insurance for everyone. Final Expense is geared towards people 50 to 80 yrs old with approximately 15k to 50k in annual income. Higher income earners who may be seeking an investment or an additional tax shelter with potential creditor protection may want to consider Variable Universal Life. Young parents starting out on a budget looking for affordable insurance coverage primarily for income replacement in case of a death may want to explore term life. Whatever the case, always consult a licensed insurance professional or certified financial planner to help you determine the right product for your situation.

Weighing out the fact that just about anyone can qualify for a policy, the relative ease of the process of getting insured, and the cost effectiveness of the premiums, final expense is a good buy for anyone looking to get coverage. A large number of people believe that a pre existing medical condition will prevent them from qualifying for insurance and just won’t apply for it. There are final expense programs that accept a wide variety of illnesses and conditions, don’t require a medical exam or even a questionaire to be filled out with no medical history check at all. Although premiums are usually higher for these types of policies it is well worth looking into for the piece of mind. Don’t assume…..speak to a licensed professional.