Reviewed by MARGUERITA CHENG What Is Final Expense Insurance? Who Should Have It?
A whole life insurance policy called final expense insurance has a low death benefit and is easy to get approved for. Funeral insurance, burial insurance, simplified issue whole life insurance, and modified whole life insurance are all forms of final expense insurance.
According to Richard P. Sabo, a financial planner and insurance fraud expert in Gibsonia, Pennsylvania, there is no difference between final expense insurance and life insurance, with the exception of the fact that insurers sell the smaller final expense insurance policies to make it more affordable. Final expense insurance has a death benefit designed to cover expenses such as a funeral or memorial service, embalming, and a casket, or cremation. However, beneficiaries can use the death benefit for any purpose, including vacation planning or property tax payments.
According to Sabo, “they market the final expense insurance to people who are older and starting to think about the costs of their funeral, and they make it appear as though they need to do it in order to take care of their family.”
“Some people already have life insurance policies that they can use to pay for their last expenses, so do they really need a new policy?” He adds that if someone has already paid for their funeral in advance, final expense insurance may be unnecessary.
