What Are the Advantages of Final Expense Life Insurance?

Final expense or funeral insurance as it is often referred to as a basic type of life insurance that is used to pay for your funeral services and/or final medical expenses. These types of policies are almost always permanent life insurance policies that offer face amounts which are typically the amount of money your beneficiaries will need to cover your burial expenses in the range of $10,000 to $20,000. To find low cost life insurance for this type of coverage, it is worth looking into its benefits.

senior-term-life-insuranceBurial insurance policies being permanent, this means that they do not have a specific time period of coverage, therefore no expiration date – granted premiums are paid. Also, these policies will include a cash value component where tax-deferred savings can be built up over time. There are two benefit levels available with Funeral Insurance plans, Level Benefit and Graded Benefit. With Level Benefit, the full amount of the policy will be in force starting on the day the application is approved. With Graded Benefit there is a 24 month waiting period before the full face amount of the policy is in force. Should death occur to the insured, carriers will return premiums paid with interest.

Because there is no medical exam requirement, applications can be approved in a short time. Policyholders will also have a choice in how they make their premium payment on these insurance policies. One premium payment option is the traditional monthly mode, while another option is to simply pay one single lump sum. This way, the policy will immediately be paid up, with no further premium payments due. A graded payment option is also available. With this type of payment, the insured will be able to decide on how long he or she would like to pay their premium. And the insurance policy will provide an amount of coverage that will be equivalent to the amount of coverage that the premium will buy.

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