Many people rely on life insurance policies to help their families pay for funerals, medical bills, and other expenses. However, if you have term life insurance that expires or carry a term life insurance policy that is no longer large enough to meet the needs of your final expenses and also provide for family members, it can be difficult to obtain additional life insurance at an older age, especially if you are not in great health. A simple solution to this issue is to invest in a final expense insurance policy. This is a type of insurance policy that can supplement your current life insurance policy or provide financial relief to your family in the event that you do not have life insurance. The top reasons to buy final expense insurance include the following:
Ensure That Funeral Costs Are Covered
Losing a loved one is never easy for a family, and the loss can be even more difficult when there is also stress about how the funeral is going to be paid for. In this day and age, funerals can cost thousands of dollars, and some families simply can't afford that unexpected expense on short notice. When you hold a final expense insurance policy, your family can use the funds to pay for your funeral without accumulating any out-of-pocket expenses.
Pay Off Final Bills
No one knows when their life is going to end, so many people pass away when they still have debt to pay off. Unfortunately, debt does not disappear when a person dies—their estate is still responsible for paying it off. No one wants to saddle their loved ones with the responsibility of paying off medical bills, loans, and other forms of debt after their death. In addition to using funds to pay for your funeral, your family can use the remaining money from a final expense insurance policy to clear any debt that your estate may have.
Financial Safety Net for Your Loved Ones
If you feel that your current life insurance policy is too small or if you don't have life insurance, you may experience stress and anxiety imagining how your family will fare financially after your death. The proceeds from your final expense insurance policy can provide money to your family so they can take time off work to plan your funeral and grieve your passing. Having these funds available can be a great gift to a family in mourning.