What is Final Expense Insurance?
Final Expense Insurance, also referred to as Burial Insurance or Funeral Insurance, is a unique name given to an insurance policy that is designated for paying the final expenses of the policyholder. In reality, it is an act of love. It demonstrates the love the policyholder has for his or her surviving loved ones at a time when they are grieving their loss.
What are Final Expenses?
When we die, there are certain expenses, referred to as final expenses, that must be paid by the surviving loved ones of the person who has passed on. Typically, these expenses are for funeral and burial expenses, medical or nursing home expenses, and debts that can legally be passed on to survivors.
The average cost of a moderately priced funeral in the U.S. is currently running about $9,000 to $10,000 according to Parting.com, a service that monitors the funeral industry across the nation. Think about that for a moment, a one-day event to say goodbye to a loved one costs about $10,000. And think about what will happen if your loved one who has just recently passed has not made financial arrangements to have the funeral/burial expenses paid for in advance.
There are other expenses that must also be considered. Many seniors who have passed away may have recently spent time in a nursing home or assisted living facility, and there will typically be an outstanding bill due for their services. If the person who passed had been a party to a financial contract like a vehicle loan or personal loan, they would likely leave the other party on the contract (a spouse, child, or grandchild) completely responsible for the loan balance. This certainly calls for consideration of final expense insurance.