A final expense insurance, also known as a funeral or burial insurance, is an overarching or whole life insurance policy to help cover one’s final expenses, such as burial and funeral costs. In this insurance plan, one’s premiums do not increase, and death benefits never diminish. Final expense insurance eases seniors’ worries about their funeral costs in the event of their death. Here are some things one should know about this type of insurance:

There is only one difference between final expense and life insurance
The only difference between life insurance and final expense insurance is that the latter is made more affordable by insurance companies. Moreover, since premiums do not increase at any point, it is a stable insurance plan even if one’s income sources reduce after retirement.

One does not have to undergo a health examination
Policyholders are not required to undergo a health examination before they get coverage under a final expense insurance policy. The policy is unlikely to terminate regardless of the policyholder’s health condition.

One may pick funeral service providers
Most final expense insurance policies are flexible, meaning they financially compensate individuals regardless of the funeral service provider one picks. In other words, the policy is not weighed down by factors like geographical location, providers, and plans.

The initial premium amount is based on age
Although one’s premium amount remains the same throughout, the initial premium amount factors in one’s age. Therefore, it is advisable to buy the policy as early as possible so that one does not have to pay a larger premium amount.

One may borrow against their tax-deferred dividend amount
Another major advantage of the final expense insurance policy is that one may borrow against the tax-deferred dividend amount of one’s final expense insurance policy. This enables one to have an easily accessible line of credit in emergencies.

There are additional benefits in case of accidental death
The beneficiaries of policyholders who succumb to accidental death reap additional benefits, including a lump-sum amount being paid out.