What is Final Expense Life Insurance?
Do you have enough money set aside to pay for your funeral or cremation costs and other final expenses?
Final expense life insurance is permanent life insurance, and it does not have a term duration, such as 10 or 20 years. It remains in effect as long as you pay your premiums.
Your Western life insurance expert will take the time to explain final expense life insurance and how your final expenses can be looked after so that you don’t burden your family with them.
We’ll give you the information that you need to allow you to make an informed decision that works for you and your family.
Here’s what you need to know:
What is Final Expense Life Insurance: Final expense insurance protects your loved ones against funeral or cremation expenses.
You might also hear it be referred to as funeral insurance or burial insurance.
Once you have your final expense life insurance, the premiums do not increase and the death benefit does not decrease.
Your beneficiaries can use the death benefit to pay for your funeral expenses, such as a memorial service, embalming, casket, or cremation services.
They can also use the death benefit for any purpose, such as paying property taxes or debts.
Do you know how much a funeral costs?
The average cost of a traditional funeral with a burial in Canada is between $5,000 and $15,000.
Cremation costs are, on average, between $2,000 and $5,000.
Pros of Final Expense Life Insurance:
- It’s usually popular with seniors because of its affordable price, smaller benefit amounts, and emphasis on covering funeral costs.
- Premiums are usually dependent on your age at the time of purchase.
- Typically, there is no medical exam or long questionnaire. Usually, you are only required to answer some medical questions.
- It can be a welcome choice for those who can't get any other insurance due to their age or health but want to ease some financial burdens for their loved ones.
Cons of Final Expense Life Insurance:
- The older and less healthy you are, the higher your rates will be for a given amount of final expense life insurance.
- The largest death benefit you can select may be smaller the older you are.
- The amount beneficiaries are paid may not meet all expenses.
- The benefit offered is usually much lower than traditional life insurance products.
Your Western life insurance expert will welcome a discussion on the pros and cons of mortgage insurance with you.
How old do I need to be to get final expenses life insurance?
Applicants are usually between 40 and 80 years old.
Your final expense life insurance policy should be large enough to cover the kind of funeral or cremation that you want. To get as accurate an estimate as possible, you should pre-plan your arrangements.
Can I get final expenses life insurance if I already have an illness?
You can qualify for coverage even if you have a serious illness, although there may be a waiting period on the policy.
Funeral insurance has smaller payouts than most permanent life insurance policies but is also less expensive.
Plan how life insurance can meet your family’s needs
Life insurance is about protecting your family for the future and helping to meet their needs. As your circumstances change over the years, it’s a good idea to keep reassessing how your life insurance can protect your family.
Your Western life insurance expert can speak to you about how life insurance can help protect your family over the years.
Western Insurance has over 40 licensed LIFE INSURANCE EXPERTS across Canada. Our experts are available now in branch or on the phone to help you navigate the life insurance journey that will give you the right policy to protect yourself, your investments, and your family
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