Rising Funeral Costs and Medical Expenses
The hardest thing we must ever face is the death of a loved one. On top of this, surviving loved ones are often left to handle any end-of-life medical expenses and funeral costs. These expenses can add to the sense of grief and stress surviving family members may feel. Final expense insurance is most often a type of (Whole Life) permanent life insurance used to cover medical costs and other end-of-life expenses. These costs usually include caskets, transportation, preparation of the body, grave liners, flowers, or the headstone and cremation. The average funeral cost is between $10,000-$15,000. A final expense policy can help with these costs and protect your family from experiencing a financial burden.
Most whole life policies last for the life of the policyholder and some accumulate cash value.
Easy qualification. Because the coverage amount is lower than other types of life insurance, most final expense policies do not require a medical exam to qualify. Most policies can be issued based on answers to health questions on the life insurance application. There are coverages available with No Health Questions, which are Guaranteed acceptance.
Some types of whole life policies allow you to pay premiums for shorter periods of time, such as 20 years, or until age 65. This usually results in higher premiums than with ordinary life, because payments are made during a shorter time.
You may also borrow against the cash value with a loan. * Any money owned in the form of a policy loan is deducted from the benefit paid when you die, or from the total cash value if you stop paying premiums