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Final Expense

What Is A Final Expense Plan?

Final expense insurance is a whole life insurance policy that has a small death benefit and is easier to get approved for. Final expense insurance is also called “funeral insurance,” “burial insurance,” “simplified issue whole life insurance,” or “modified whole life insurance.” All are marketing terms that the insurance industry uses to sell small whole life policies with a face value (death benefit) of $5,000 to $50,000 for the target age group of 40 – 90 years of age.

There is no difference between final expense insurance and normal life insurance other than the fact that insurers sell smaller policies to make it more affordable.

As mentioned earlier, final expense insurance is a type of whole life insurance. Whole life policies are pretty easy to understand as far as permanent life insurance goes. Once you have your policy, the premiums cannot increase, and the death benefit cannot decrease. Unlike a term policy, a whole life policy does not expire when you reach a certain age. A whole life policy also accumulates cash value that you can borrow against, though any loans that are unpaid when you die will reduce how much money your beneficiaries receive.

  •  Policies are available to applicants with poor health.

  •  The application process doesn’t include a medical exam, only a questionnaire and prescription history at most.

  •  On many policies premiums never increase (this is true for many types of life insurance).

  •  The insurer cannot decrease your policy’s death benefit unless you borrow against the policy’s cash value or request accelerated death benefits (also true for other types of life insurance).

  •  Your heirs can use the death benefit for any purpose (again, a standard feature of life insurance).

  •  The death benefit is guaranteed as long as premiums are paid and you don’t have a term policy (also a standard feature of any whole life insurance).

  •  The death benefit is not taxable (also a standard feature of life insurance).

  •  You can buy a policy with a death benefit of $50,000 or less, and that’s all some people need or can afford.

Please call or email me today – I look forward to answering your questions.

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