Why Seniors Are Choosing Final Expense Policies Over Other Options
As retirement age approaches, many seniors will begin to think much more carefully about how their loved ones will be properly cared for once they’re gone. One of the most prominent and top of mind concerns for seniors is the actual cost of funeral and end-of-life related expenses. For this reason, many seniors are looking for affordable coverage options in the form of final expense life insurance policies, often over other forms of coverage. Here at The Lambert Agency, we’ve had firsthand experience with how beneficial final expense policies can be when it comes to providing peace of mind, affordability, and simplicity for the policyholders.
What Is a Final Expense Policy?
So what is a final expense policy? A final expense policy is a specific type of permanent life insurance designed to cover costs associated with funerals, burial expenses, medical bills, and any outstanding debts. Unlike term life policies, or larger and more expensive whole life policies, final expense coverage will be offered in smaller amounts, often between $5,000 and $25,000. Here at The Lambert Agency, we assist seniors with securing these types of final expense policies quickly, most often with simplified underwriting and no medical exams required.
Why Seniors Prefer Final Expense Policies
Affordability
Yes, final expense policies will offer smaller benefit amounts, yet they’re also very affordable in most cases when compared to term life insurance or whole life insurance policies.
Simplified Approval
Many seniors will find the underwriting and approval process of a final expense policy to be much easier when compared to larger policies. In many cases, only a few basic health questions are asked, and there’s typically no need for a medical exam.
Lifetime Coverage
Unlike a term life insurance policy, which will expire after a predetermined number of years, a final expense policy will remain in force as long as the premium payments are made. The Lambert Agency is here to help ensure your final expense policy is properly managed, so you can rest assured your family will receive protection when they need it most.
Peace of Mind for Loved Ones
The average funeral cost may range anywhere from $8,000 to $20,000. Without proper coverage, families will have to pay those costs out of pocket. A final expense policy helps to ensure those costs are not a burden during your time of grieving.
Flexibility in Use
While most final expense policies are designed for funeral expenses and their associated costs, beneficiaries are able to use the payout for medical bills, outstanding debts, or for a small legacy for next of kin.
Comparing Final Expense to Other Options
- Term Life Insurance: Affordable at younger ages, yet more difficult to qualify for and typically much more expensive later in life. Additionally, it will expire at some point in time, typically around 10-30 years later.
- Whole Life or IUL: These are larger policies with an array of investment features, yet they’re often more than most seniors need when the primary concern is covering end-of-life costs and other associated expenses.
- Savings Alone: While some seniors may rely on savings alone, unexpected expenses or market downturns may make this a risky plan. Final expense insurance will provide a guaranteed payout to beneficiaries.
Here at The Lambert Agency, we’re able to walk seniors through these policy comparisons so they make the best and the most practical choice for their specific needs, while also maintaining a cost-effective option.
Is a Final Expense Policy Right for You?
If your primary concern is ensuring your loved ones and beneficiaries are not left with funeral or medical bills, a final expense policy is likely a good choice for you. A final expense policy offers affordable, lifetime protection and will ensure your family can focus on grieving and healing, rather than be burdened with financial issues. Feel free to contact us to learn more about how we can help you navigate the final expense policy process. We look forward to hearing from you soon.
