Will Final Expense Life Insurance Expire?

 

Most people out there use life insurance as a way to financially protect their loved ones from

financial catastrophe. The truth is dying is not cheap and life insurance is a way to cover one’s

final expenses after they pass away such as, burial, funeral, and financial debt. One very

important thing to understand is that final expense is a whole life insurance policy. As

mentioned, it’s a specific type of life insurance used to protect your loved ones financially after

death. Due to the policy being a whole life policy, one might wonder, will it cover me until I die?.

We will go over how it works and why a true final expense policy is meant to cover you for the

rest of your life.

Final Expense 101

These whole life policies known as final expense work in a very simple way:

● The monthly dues, known as premiums, can never increase and will remain the same.

● The death benefit, the lump sum that your beneficiary receives after you pass, will never

decrease.

● The policy will not expire due to age and this is why it's a whole life policy.

● In order to apply, medical exams are not necessary. This means no blood work and urine

samples needed.

As you can see, these policies are simple and straightforward. Once you pass away your loved

ones will receive a tax free lump sum check from the insurance carrier. The money can be used

as they see fit for funeral cost, cremation services, left over debt, and even keeping the funds to

enrich your loved ones and provide them a financial safety net.

How does Final Expense Whole Life Insurance differ from Term Life Insurance?

As previously mentioned, final expense is a type of whole life insurance that is simple and easy

to understand. On the other hand there is another type of life insurance that is also a popular

option and easy to understand as well. Term Life Insurance, as the name suggests, is a type of

life insurance that will cover the insured for a certain term of time such as 10, 20, or 30 years. If

the insured were to pass away during the life of the policy, meaning during the coverage term,

then the policy would pay out to the beneficiary. If the term ends and the insured is still alive

then the policy simply expires. Unlike Final Expense which does not expire and is meant to

cover for life, Term life insurance does expire and is a great option for those looking for a

temporary life insurance solution. These are some of the biggest differences between the two.

Making the right choice

At the end of the day protecting what matters most to you such as family, friends, and loved

ones is a noble thing to do, so when it comes to insuring their financial future it makes sense to

learn what options are available out there and how each type of life insurance policy can be

specifically tailored to a specific situation in one’s life.