FINAL EXPENSE INSURANCE
Final expense insurance was created to help cover end-of-life costs, like funeral expenses.
The payout from a final expense plan comes with no strings attached, so your loved ones can use it however they need. Many families use the proceeds from a final expense insurance plan to cover costs like: funeral cost, medical bills, hospice care, credit card(s), an inheritance for your kids or grandkids, auto loan, or other debts.
Final Expense Life Insurance
Final expense is typically a type of permanent life insurance, which means that you’ll be covered for your entire life as long as you continue to pay your policy premiums. Once you purchase a final expense plan, your insurance company is obligated to cover you, no matter what happens with your health.
The Average Funeral Cost
$7,500 - $15,000
Funeral Cost Estimates
Benefits of Final Expense Coverage
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Premiums remain level and may be payable beyond age 100.
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The death benefit is guaranteed as long as premiums are paid as required.
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You can choose between monthly or annual premium payments.
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The cash value of the policy accumulates tax-deferred.
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Your beneficiary chooses whether or not to use the death benefit for burial expenses.
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Your policy may earn dividends (there's no guarantee). If it does, those dividends can accumulate while earning interest, purchase paid-up additions, be used to reduce a premium that's due, or be paid in cash – it's up to you
Why You Should Consider Final Expense Insurance
According to the National Funeral Directors Association, the median cost of a funeral, burial services, and a vault is $9,135, while the median cost for cremation is $5,150. (Source: NFDA News Release, December 19, 2019)
With Final Expense Life Insurance from State Farm (called "$10,000 Whole Life" in NY), your guaranteed death benefit of $10,000 will be paid to your beneficiary, who may or may not choose to apply it towards these costs (applying the benefit to your funeral, burial, or related expenses isn't required