Determining Your Final Expense Policy Coverageby Golden Memorial A business that feels like a family
To protect your family members from burdensome end-of-life costs, you can purchase final expense insurance. These policies pay for the costs associated with the policyholder's death, as well as expenses that family members may not be able to manage on their own after the policyholder passes away.
For some, final expense policies may be an alternative to life insurance. If a person does not qualify for traditional life insurance, he or she may purchase a final expense insurance plan, which will require no medical exam. Also, the smaller face value of the policy means that premiums will be more affordable. On the other hand, for those who do have whole or term life policies, final expense insurance will help the family pay expenses, while beneficiaries wait for the life insurance benefit to be paid.
You should determine their coverage based on several factors. Funeral expenses, of course, are a major consideration, and you should consider costs for the funeral, the minister, the hearse, and the cemetery plot. You should also consider rolling in expenses, like mortgage payments, or legal fees for probate, which family members may not be able to pay out-of-pocket.
Unfortunately, you must beware of final expense policy scams. Premiums should be reasonable, and you should pay no penalty for cancellation. Also, the funeral costs at the time of death should be paid in full, and not based on what funeral costs were at the time that the policy was purchased. Additionally, a family member, not the funeral home, should always be the policy's beneficiary.
You should begin by tabulating your expected end-of-life costs. You should then contact a reputable funeral insurance company, or fill out an online form, asking for a policy quote. When you have found good coverage, at a good price, you should choose a beneficiary, and make sure that the beneficiary knows where policy documents are kept.
Burial benefits are usually paid within twenty-four hours of the policyholder's death, allowing families to pay for funeral expenses immediately, without worrying about the accrual of late fees. For many families, final expense insurance, either on its own or as a supplement to a whole or term life policy, will provide important financial support during difficult times.
Created on Sep 7th 2020 01:31. Viewed 107 times.