As the coronavirus pandemic continues to surge across the global, being prepared with final expense insurance has never been more imperative and something everyone needs to think about.
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The World Health Organization (WHO) reported that globally there have been 123,902,242 confirmed active coronavirus cases, including 2,727,837 deaths and 70,8 million recoveries.
In the U.S., the Centres for Disease Control and Prevention (CDC) reported 29,769,352 current active coronavirus cases and a death rate of 541,289, either directly as a result of the coronavirus or indirectly from coronavirus-related complications.
While it may seem as if we have overcome the worst of the virus, the need for final expense insurance has never been more important as the virus continues to spread and the death toll continues to rise. But what is final expense insurance exactly?
Final expense insurance policies explained
Nobody wants to be a burden on their family, friends and associates when passing away. That is why a special category of insurance have been introduced. Final expense insurance is also referred to as whole life insurance policies designed to cover medical and funeral expenses, they have smaller death benefits but are easier to get approval for and come with a whole host of benefits.
Final expense insurance policy premiums that are locked in and do not increase over time, they require no medical examinations to be eligible and final benefit amounts are also locked in and do not decrease over time or expire. Final expense insurance policy premiums are significantly less expensive than life insurance policies and accumulate cash value benefits that policyholders can borrow from at any time during their life, however only after waiting periods are completed.
Final expense insurance companies do not require extended evaluation periods or medical examinations, they are therefore easily obtained and policyholders have access to their cash benefit usually after a short waiting period. Only after the waiting period do accumulated cash benefits become payable.
There are however many insurance companies that offer policies without a compulsory waiting period, yet they do generally require that policyholders fill out a questionnaire of sorts and gain approval from the insurance company to qualify for their policy.
Final expense insurance policies are specifically designed to pay the beneficiaries of policyholders a final death benefit amount which is meant to cover funeral and burial expenses and any other costs associated with the policyholder’s death. Final expense insurance policies are important as they provide people who want to take care of the financial aspects of planning or paying for their funeral expenses with a means to do so, so that their loved ones don’t have to.
Choosing the right final expense insurance for you
When talking about final expense insurance, there are two options: burial insurance and prepaid burial plans. Prepaid burial plans are usually purchased directly from funeral homes and involve a lot of pre-planning of various funeral and burial aspects. Once arrangements are made and confirmed, the funeral home is paid a sum of money which it holds on to. With prepaid burial plans you are able to plan and prepay for funeral arrangements and expenses.
Burial insurance is different. They are insurance policies purchased from insurance accompanies. Policyholders pay monthly premiums in smaller increments and are guaranteed their family receives a death benefit upon their death to cover funeral expenses. Burial insurance policyholders can also arrange that their monthly premiums accumulated to an amount that exceeds the cost of funeral arrangements, leaving their loved ones with some money, tax-free, to do with as they please.
If you take time to analyze the various offerings of all the biggest providers in the world, it is clear that most of them have products aimed at dealing with this very special market segment. This includes UnitedHealth Group (US) Ping An Insurance (Group) Company of China Ltd. … AXA S.A. (France) China Life Insurance (Group) Company (China) Kaiser Foundation Group of Health Plans (US) Anthem (US) Allianz SE (Germany).
Choosing the right type of final expense insurance policy comes down to what you want, whether you want to make the arrangements and pay for funeral expenses beforehand or leave your family with a death benefit to cover funeral expenses and maybe a little bit extra.
Final expense insurance has become more imperative than ever before
Final expense insurance can be a difficult topic to have to think through but it is crucial that you do think about it, especially now during the pandemic. Figuring out which final expense insurance policy is best suited to your life circumstances and offers you the best protection can give you peace of mind and a feeling of preparedness should anything happen to you.
