Final expense is a term that we use to refer to costs that come up when a loved one passes away. Of course, this is a stressful time for all of us. But these costs can really add to our normal issues when we have to deal with the loss of a loved one. Some examples of these costs are funerals, burial plots, travel, transportation, hotels, and settling debts.

These costs are not trivial either. An average US funeral can cost $8,000 or more. That is only the burial costs, and does not include other expenses like travel, housing, lost work time, and settling any debts our loved one may have left behind.

About Final Expense Insurance

That is why final expense policies are being marketed by many top insurers these days. It is very common to see ads for them on tv, the internet, or in magazines. These are simply whole life insurance policies with fairly low death benefits ($2,500 – $25,000) that were designed to be easy for older people to apply for and get accepted for. They usually are marketed to people from about age 50 to age 80 (sometimes age 85). So the time to consider these is typically in middle age or retirement years.

Do not just buy the first policy you happen to find either. As with any insurance, not all policies or companies are exactly the same. By finding the right company and type of life insurance policy for you, you can save hundreds of dollars in premiums. Look here for Over 50 Life Insurance Quotes.

If you are looking for life insurance for older people, make sure you know the difference between term and whole life. Also pay attention to the difference between simplified vs guaranteed issue policies.

If you would like to learn more about whole life, consider reading – Define Whole Life Insurance for more information.

Plan For A Funeral

Seniors, or their children, may know that funerals can cost $8 – $10 thousand dollars these days! Sometimes it is hard to come up with that much cash to pay for a nice funeral. In addition, some family may need to travel. Others will certainly need to take time off of work. A body may need to be transported. It is never fun to think about a loved one passing away. But still, many people plan for this event.

A final expense life insurance policy can be a simple and affordable way to make sure that the funeral, and other expenses, can get paid for.

Sometimes seniors buy a policy for themselves, and sometimes, children or caretakers purchase the policy. If the seniors buy the policy, they set the beneficiary to the people who will be responsible for making final arrangements.

Settling Debts

If elderly people still owe money, many want to make sure that their children or grandchildren do not have a burden to worry about when they pass away. A final expense plan provides cash, so these debts can be paid off. Again, a senior may purchase a plan so the kids get cash, or the kids may own the policy on the elderly person. That way they make sure they have the money to settle debts and pay off medical bills without any problems.

Transfer Money To The Next Generation

Most of the time, proceeds from a life insurance policy are tax free. If a parent or grandparent would like to make sure that their descendants get some money when the pass away, a seniors life insurance policy can be an easy way to plan for this.

Seniors Life Insurance Is Designed For Easy Issue

You can find simplified or guaranteed issue life insurance policies. That means that most seniors, in reasonable health, can qualify for a final expense plan.

With guaranteed issue policies, nobody is turned down. The drawbacks are that rates will be higher than with simplified issue, and the death benefit may not be immediate. It usually has a waiting period of 2 – 3 years before the full benefit will be paid. If the covered person passes away before that, it usually refunds premiums, sometimes with interest.

Simplified issue plans ask some health questions, but are still written for reasonably healthy older people. The death benefit should be immediate and premiums will be less than guaranteed issue plans. If a senior does not want to answer any health questions, insurers know they are taking on a bigger risk, and so they charge accordingly.

Either way, many older people will benefit from a life insurance policy. They will have the security of knowing that they have planned for their passing.