Final expense insurance, also known as burial insurance, is a type of life insurance policy that is designed to cover the costs associated with a person’s funeral and other end-of-life expenses.
When someone passes away, there are many costs that their family and loved ones may need to pay for, including funeral and burial expenses, medical bills, and other final expenses. Final expense insurance policies are typically smaller than traditional life insurance policies and are intended to provide enough coverage to pay for these final expenses.
Final expense insurance policies are generally easy to obtain and do not require a medical exam or extensive underwriting. They are typically purchased by seniors or individuals who have pre-existing medical conditions that may make it difficult to obtain traditional life insurance.
The benefit amount of a final expense insurance policy can vary depending on the policy, but generally ranges from $5,000 to $25,000. The premiums for these policies are often lower than those for traditional life insurance policies because the benefit amounts are smaller and the risks to the insurance company are lower.
Overall, final expense insurance can provide peace of mind to individuals who want to ensure that their loved ones are not burdened with the costs of their final expenses.