Why You Should Consider These 3 Important Reasons for a Final Expense Insurance Policy

Inarguably, 2020 was a difficult and tumultuous year for most Americans.

Sadly, many otherwise healthy -- even young -- individuals without any pre-existing conditions lost their lives to COVID-19, underscoring the importance of preparedness measures such as life insurance and final expense and burial insurance.

COVID-19 and its variants do not care how old a person is or how healthy a person seems -- if the virus can take over its human host, it will surely try. Vaccination is certainly an important component of keeping one’s family and community safe, but there are other equally important ways of protecting your family in the event of your untimely death.

Funerals can cost between $8,000 and $10,000. That’s a significant amount of money to obligate to your family after you die. Here are three reasons you should consider purchasing a final expense and burial insurance even if you already have term or whole life insurance.

1. GENERATES CASH VALUE

Can be used toward existing medical costs
Can also be used to pay for your cremation or funeral service and burial

Can be used by your loved ones to pay off any debt you may leave behind
Can be used to pay for estate taxes
If you co-own a business and your business partner dies, you can use this money to purchase your partner’s shares in the business instead of selling the business.

2. NO MEDICAL EXAM

If you have preexisting conditions or will not qualify for a term policy, final expense and burial insurance policies are “simple issue,” which means that they do not require any medical exams or complicated underwriting before the policy can be issued and in effect.

Work withyour insurance brokerto find a plan that will pay the death benefit to your beneficiaries regardless of whether your death happens within two years of policy issuance or whether your death is due to “natural causes.”

3. GUARANTEED DEATH BENEFIT

As long as you continue to pay your policy’s premium, the plan will “pay out” to your beneficiaries upon your death.

Contrary to popular misconception, your beneficiaries will not be responsible for paying income taxes on the money they receive from your death benefit.However, they may be responsible for paying taxes on any interest that the plan generates.

Generally, a final/burial expense policy is best for folks with low income and no financial assets, folks with health conditions that bar them from term life insurance policies, and senior citizens. These types of whole life insurance policies can also be purchased by folks who already have a term life policy in place, but would prefer to have a specific policy meant for their cremation or funeral and burial expenses. Keep in mind that your family can also use these funds to pay off any remaining bills or debt you leave behind when you pass away. In any case, the decision is certainly an important one. It’s important to talk with an insurance broker who understands your personal goals and can guide you toward the best plans for you.

QUESTIONS? WE CAN HELP!

AtAIM Inc., we have helped thousands of families and businesses with their life insurance needs, and we can help you too! Our goal is to match our clients with the best-suited options for their needs, goals and lifestyle by comparing plans and rates from dozens of highly-rated insurers, saving you time and money. Most importantly, our services are completely free, and there is no cost to apply for coverage. Give us a call today at 909-985-3659, or you canrequest a free quote online!

Get Your Free Quote!

Why You Should Consider These 3 Important Reasons for a Final Expense Insurance Policy

Why You Should Consider These 3 Important Reasons for a Final Expense Insurance Policy

Inarguably, 2020 was a difficult and tumultuous year for most Americans.

No Comments

Resources

Contact Us