Most people want to focus on living life to its fullest, but we really should be focusing on securing insurance to cover expenses whenever our time comes. Planning for your end of life does not mean you are not optimistic about having a long life. Planning merely ensures your wishes are covered and gives you comfort in knowing your family won’t have to worry financially. Bilt Consultants in Georgia has the knowledge and expertise to help you financially prepare with the right insurance policy. Read more to help determine which type of insurance best suits you and your family's needs.
What You Need to Know About Final Expense and Burial Insurance
Final Expense VS. Burial Insurance
Final expense and burial insurance are often used interchangeably. These terms are given as a name to the policy to help determine the purpose of the insurance policy.
Final expense insurance is the name given to the policy to help clients understand the purpose of this policy is to set up sufficient funds for loved ones to pay for the final expenses a person leaves when they pass away. In essence, final expense insurance is referring to a whole life insurance policy. It covers end-of-life expenses as a whole, such as funeral costs, unpaid medical bills, and even unpaid nursing home care expenses.
On the other hand, when someone is talking about burial insurance, they are referring to whole life insurance with a death benefit sufficient enough to cover the funeral and burial expenses. In your burial insurance, your death benefit can use the money for the funeral, burial, or anything else they want to.
Final expense and burial insurance are very similar in the sense that they both serve a common purpose of leaving your family in a good place financially, covering your end-of-life expenses. Getting a quote can be a good place to start in determining the best insurance policy for you.
Is Life Insurance the Same Thing?
The main difference between life insurance and final expense or burial insurance is the death benefit. Life insurance is a type of insurance policy that pays out a designated beneficiary a sum of money upon terminal illness, critical illness, or death of the policyholder.
Some other differences between final expense insurance or burial insurance and life insurance are:
Lower death benefit resulting in a lower expense. So if you are on a fixed income, this could be a great option for you!
Easy to sign up for a final expense or burial insurance
Final expense or burial insurance is typically purchased by those who are typically middle-aged or older to secure a plan for their end of life
A life insurance policy is also more encompassing than final expense insurance and burial insurance. Life insurance can cover more than just funeral expenses. It also covers mortgage, education, and other financially stressful items to put the family at peace.
Benefits of Having Final Expense or Burial Insurance
Whether you choose final expense insurance or burial insurance, you can rest assured knowing your finances are in line to cover some end-of-life costs for your family. On top of knowing your family is taken care of, many people enjoy the following advantages of a final expense policy or burial insurance:
No medical exam
Lower, affordable premiums than typical life insurance
Payment plan flexibility
Who Should Purchase Final Expense or Burial Insurance?
Final expense insurance and burial insurance policies are typically for those individuals who are middle-aged or who are in poor health and cannot qualify for traditional life insurance. If you are over 50 years of age and are realizing you could be leaving your family with a financial burden after your passing, you should consider final expense or burial insurance.
End-of-life planning can be stressful, but making arrangements also takes some stress off of your loved ones. Talking to your trusted partner at Bilt Consultants in Georgia can help you choose the best insurance policy for your needs.