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As they approach the twilight of their lives, many people begin to consider putting their affairs in order. For these people, planning for the expense of a funeral and burial costs are simply another necessary step.

Seniors who are contemplating how to pay for their final expenses may think that life insurance is the product that suits their needs. After all, life insurance will always pay out upon the person’s death, providing much-needed money to the insured’s family.

However, seniors would do well to consider final expense insurance in lieu of a life insurance policy. Here are a few advantages to this type of insurance product.

Funeral Insurance Tends to Be Easier to Get

Anyone who has ever shopped for life insurance knows what a hassle it can be. From the endless questionnaires to the intrusive medical testing and other forms of screening, life insurance policies are designed to pay out only if the insured dies during the term of coverage—meaning that a payout is not a sure thing, and the life insurance company tries to minimize its chances of issuing a policy to someone who likely will not survive the duration of the plan.

In contrast, final expense insurance is crafted with the idea that the insured will die. Simply put, life insurance is for if you die; final expense insurance is for when you die.

While it may seem a minor difference, the result is an entirely different mindset on the part of the insurance company. Because the final expense insurance is issued with it being a foregone conclusion that the policy will pay out, insurance companies are not as picky about who they insure. This means it can be much easier to get a final expense policy.

Final Expense Policies Can Be Cheaper

Life insurance can be very expensive, particularly for someone over a certain age. This is because life insurance policies can be for hundreds of thousands of dollars, meaning the insurance company must charge a higher premium in order to ensure a profit.

On the other hand, final expense policies can be as low as anywhere from $500 to $10,000 (although higher policies are available), meaning the payout is much, much lower than the payout for most life insurance policies. The lower payout means the insurance company can charge lower premiums and still make a profit.

For a senior who is on a fixed budget, the lower premium can make all the difference in the world. There are plenty of website where you can compare prices on these policies.

Final Expense Policies Never Expire

As noted earlier, a final expense policy is written with a view towards the certainty that the insured will pass on. This means that when a senior purchases one such policy, he or she won’t typically need to be concerned with outliving his or her coverage.

Some families of seniors have found themselves in the predicament of paying for years on a term life insurance policy, only to find that the coverage is gone when they need it. With final expense insurance, this will never be a consideration.

While life insurance may seem to be a great deal when you are young and in good health, the sad reality is that it is not usually the best solution for seniors. However, given the affordability of final expense insurance and the ease with which the policies may be obtained, many seniors will find that these policies are superior to traditional life insurance.

Talking about the end of a loved one’s life is never easy. But by being proactive and purchasing a good final expense insurance policy, you and your family can take steps to ensure that those final expenses are taken care of.

 

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