This article is going to be written in Question and Answer format to answer questions about final expense life insurance. I find that easier to read and follow myself when it comes to financial issues and I am sure you will also.

What is final expense Life Insurance?

Final expense life insurance policies are low face value policies (typically under $50,000) that are intended to cover your final burial or funeral expenses at your death.

What type of policies are offered for final expense Life Insurance?

This type of life insurance can be bought under a term policy or a whole life policy. Term policies are those that provide temporary protection for the years or term you carry the policy. Term life insurance does not have a cash value. Whole life insurance provides protection for your lifetime, builds cash value and has a level premium.

What is the Average Cost of A Funeral?

When determining whether or not final expense life insurance is for you, the estimated funeral expenses should be considered. Today the average cost of a funeral is between $5,000- $7,000 with many running closer to $10,000 when everything is accounted for. Many people now are pre-arranging their funeral and several funeral homes now offer a price guarantee for those that are pre-arranging their funeral or burial.

Who Should Buy Final Expense Life Insurance?

Final expense life insurance is a good product for those that do not already have another form of life insurance or money set aside for the funeral or burial. These policies are helpful as they can be bought for a low face value all the way down to $5,000 while most other types of life insurance policies will not allow that.

Who Should Not Buy Final Expense Life Insurance?

Final expense life insurance is not really meant for those that still have dependents counting on their income. If you have dependents counting on your income, you need to consider getting a higher face value term policy so you have enough life insurance to cover the needs of your dependents if something were to happen.

Does Your Final Expense Life Insurance Payout Go Directly to the Funeral Home?

No, like other forms of life insurance you will set up a beneficiary who will use the money as they see fit. Pick someone you can trust will take care of the expenses you bought the policy to cover. If you want your life insurance payment to go directly to the Funeral Home you might consider looking into what is called Pre-Need life insurance. Many funeral homes sell this type of insurance directly through them and they would get the life insurance payment at the time of your death rather than a beneficiary.

Final expense life insurance is a product suited for those up in age with no persons still dependent on their income. The main advantage of this type of life insurance is the low face value coverage it offers. I hope this helped to answer the questions you had about final expense life insurance.