Final expense

Final expense insurance is designed to cover the bills that your loved ones will face after your death. These costs will include medical bills and funeral expenses. Final expense insurance is also known as burial insurance. Unfortunately, even bare-bones funerals can cost thousands of dollars. With this plan, there are never any medical exams required. Typically, these policies are only offered and designed for people between the ages of 50 – 85 and remain in force for the lifetime of the insured.

Could your family self-insure for your final expenses? Typically, a funeral service can cost roughly $10,000. But don’t forget to take into account whether you want a ceremony after the service or perhaps a trip abroad to scatter your ashes. Maybe you’ll end up leaving big bills behind. If situations like these sound like your situation, you may want to consider springing for final expense insurance. This is a permanent plan which provides a benefit amount to the family at the time your loved one passes away.

Whole life

Often called “permanent” insurance because it remains in effect for life time of the insured and offers more guarantees than a universal life policy as long as the premium is paid as scheduled. These premiums are designed to remain level during the life of the policy. In addition, after having a policy for sufficient time, it generates a cash value with deferred taxes and you may be able to access these funds with tax advantages. The cash value of these policies are guaranteed for the life of the insured.This policy, along with several others, provides living benefits to the insured in the event the insured were to be diagnosed with a terminal, critical or chronic illness.