Laying your loved ones to rest can be a pricey affair, given that funeral expenses are only soaring. The family left behind is burdened with paying these hefty prices. Whether the deceased is being cremated or buried, there is a host of expenditures to bear. Taking final expense insurance for seniors is beneficial as it covers all costs associated with performing the last rites.
In the absence of such insurance coverage, your family needs to generate the requisite funds. After all, they would want to give their dearly departed a fitting farewell. To meet this unexpected financial burden, they may have to resort to loans or borrowing from friends. In such a situation, your next of kin find themselves getting deeper in debt.
After your passing, your family needs time to grieve and heal instead of worrying about mounting expenses. When you reach an advanced stage in life or develop health complications, you must be realistic. Opting for an insurance policy that will safeguard your family is a thoughtful gesture that earns you many blessings.
When you compare final expense insurance with other conventional policies, the former involves higher premiums and offers a lower death benefit. Yet, it is worth acquiring as in addition to your burial costs; this insurance takes care of clearing your outstanding dues after your passing. These include your medical bills, probate fees, and credit card debts.
Typically, you can take a final expense insurance policy until the age of 85. Some policies stay valid till the time of death provided the premiums are regularly paid. Whole life policies terminate when the insured reaches age 100, and so the insurance company makes a full payout.
The significant merits of final expense insurance for seniors are consolidated here for your easy reference:
Value Increases with Time
With every premium you pay, the value of your policy increases proportionately. You can compare this working to your savings bank account whose balance also inflates with each credit entry.
As with other insurance policies, the initial premium for a final expense policy applied later in life is higher. If you plan to invest in it at a younger age, you save on premium expenses. However, the amount of premium you pay annually does not increase as you age.
Allows Selection of Beneficiary
A beneficiary is one who, after you are gone, will be legally responsible for allocating funds as the situation demands. You may choose a close relative, partner, or trusted agent to act as the beneficiary in your absence.
The beneficiary must ensure that funds are properly distributed as per instructions received at the time. Once the insured is no more, the beneficiary can make a claim to the policy and expect to receive a prompt payout. With the inflow of funds, the recipient avoids all out-of-pocket costs.
Flexible In Nature
If you take a term policy, you can choose the frequency of the proper payout. Term policy payments can be requested on a monthly or annual basis, ensuring your entire policy dues are not paid all at once. In the case of accidental death, there are final expense insurance policies that award seniors additional benefits.
You have a choice of service providers, which allows you to allocate funds not limited to a particular geography, plan, or provider. Having the luxury of keeping your options open is highly beneficial, considering the length of time between choosing a policy and utilizing it.
No Medical Examination Warranted
A final expense insurance policy does not make it compulsory to take a medical examination to stand eligible for coverage. Neither will any fluctuation in your health condition lead to the cancellation of your policy.
You are entitled to be covered even if you are not in the best of health when applying for final expense insurance for seniors. The only difference being, all your policy benefits will not be available to you in the initial few years of coverage.
Offers Wide Coverage
Final expense insurance covers much more than just funeral costs, equipping your loved ones to pay for all the expenses that arise after your death. The outgoings included are generally not covered in conventional policies. These range from legal fees, medical bills, to all types of outstanding debts.
After your passing, your family will struggle to deal with their emotions. Take this proactive step to secure them from making critical decisions and shouldering financial burdens while in a delicate frame of mind.
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