What is Final Expense Insurance Coverage?
Final expense insurance coverage is a life insurance policy designed to pay out a lump sum upon your death to cover your funeral costs or other related expenses. So your estate and family are not stuck footing the bill. These are typically permanent insurance plans.
Costs associated with funerals can vary widely. Take into account your wishes.
Along with your will, it is a good idea to put together a funeral and burial wishes document.
There is loads of information out there about average costs, some things to keep in mind:
- Cost of using a funeral home?
- Cost of a Casket?
- Cemetery plot cost?
- Headstone cost?
- Cost of cremation & Urn?
- Cost of a service & Extras?
- Ceremony costs?
Why not go right to a funeral home?
Lots of funeral homes have direct payment plans, should you go with one of them?
Typically a direct payment plan through a funeral home allows you to “pre-pay” for your funeral. There would be no ‘leftover’ funds to go to your spouse or family. Whereas Final expense insurance policies would pay out to directly to your beneficiaries or estate. They then can then choose how the funds are spent (and how much) and make sure your wishes are followed. Allowing your family to keep any remaining funds.
Another point to keep in mind; if you pass away in the short term with a final expense life insurance policy, the full amount of coverage you purchased will still be paid to your beneficiaries.
This is why final expense policies are preferable over payment plans with funeral homes.