Do You Need Final Expense Insurance?
Final expense insurance is one of those topics that can feel a little uncomfortable to read or talk about. This is because it intends to cover the expenses associated with your funeral when you die. While we all do, of course, die, it is not something we tend to like to think about, especially when we are relatively young and in good health. However, final expense insurance can be an addition to your financial products which can make a lot of sense - especially if you don't have life insurance, but also if you do.
Here we look at why buying final expense insurance can be a good idea:
Peace of Mind - No Leaving Your Loved Ones with Hefty Funeral Costs
There are no two ways about it - funerals, whatever style you intend to have, cost quite a lot of money. Whoever these expenses would fall to should you pass away unexpectedly, they can present financial stress. If you have final expense insurance, your nominated recipient will have the money they need to give you the kind of funeral you want, and you will have the peace of mind knowing that if something happens to you, it won't place any financial burden on the people left behind.
You Can Get the Send-Off You Want
Some people have particular ideas about the type of funeral they would like, which perhaps they have never communicated to the people who would, in the event of their death, actually end up organizing it. Whether you want to be buried in a specific place, prefer to be cremated and have your ashes scattered somewhere special to you, or even prefer the idea of something more unusual like being turned into a diamond or being buried in a biodegradable casket with a tree planted over you that you can nourish, by investing in final expense insurance you can make sure your send-off is what you want.
Life Insurance Isn't for Everyone - But Final Expense Insurance Can Be
For many people, life insurance doesn't seem like a necessary expense - at least not at their current stage in life. If you are quite young and don't have any dependents or real financial commitments that could fall to someone else if you died like debts or a mortgage, paying out for life insurance may not feel like something you need to do. However, everybody will at some point need to have a funeral, and this will cost just as much whether you are a single person in your twenties or someone with children. Because somebody will have to pay for this, final expense insurance will make sure that it won't end up being your parents or partner, and that the amount needed will be available when it is required.
Final Expense Insurance Is Easy to Apply For
If one of the things that puts you off of getting life insurance right now is things like the medical, or perhaps you have factors in your lifestyle that you know count towards your premium but which you plan to change before you buy it (for example by giving up smoking), final expense insurance can be a more appealing prospect because it is much easier to apply for, with no medical or other invasive questions about your current lifestyle. Where life insurance works on the premise that you will get a large payout when you die and the longer there is with you making payments before that, the less risk there is for the insurer to end up at a loss, final expense insurance simply works on the premise that you will die someday and will need a given amount to cover funeral expenses. This is far less complex and so fewer factors need to be taken into account for an insurer to give you a good deal that is also fair to themselves.
You Can Choose Who Handles Your Funeral
You may not want to make a full will at this stage in your life, but you may also feel that your legal next of kin may not be the person best placed to organize your funeral. Perhaps you don't see eye to eye on things that may affect your funeral, or you simply think someone else like your partner or friend might be better equipped to do it than perhaps your parents or siblings. You can nominate who you want to receive the money from your final expense insurance, and this doesn't necessarily have to be the same person who would automatically inherit your estate, or even who is named on other insurance policies.
It Is Fairly Inexpensive
Final expense insurance is a relatively cheap form of insurance, particularly when you consider that unlike some other types of insurance, it is one where the payout condition - i.e. death - is certain to happen. It can be less of a major financial consideration than life insurance and often much more tolerable for younger people who do not see any urgency in spending a reasonable amount every month on life insurance policies.
Final expense insurance may not be the most comfortable thing to think about, but it is a practical and sensible investment that deals with the certain eventual costs of your death. It is well worth considering buying it, no matter what your stage in life.
