How Does Final Expense Work?
A final expense insurance policy is like most other typical life insurance policies. A premium is determined based on the desired face amount and other factors gathered during the application process. The policy owner designates a beneficiary or beneficiaries to receive the benefit proceeds.
As with traditional life insurance policies, a final expense policy can be either term or permanent. A term policy usually provides coverage for 10 to 15 years, sometimes 20 years at which time it expires. If the insured passes away before the term expires the beneficiary receives the proceeds.
On the other hand, a permanent policy is a whole life policy where a cash value can accumulate over time on a tax deferred basis. A permanent policy will never expire as long as the premiums are paid. We provide our clients with whole life policies providing greater value than term policies.
With a final expense policy you will usually pay lower premiums than with other traditional life insurance policies, medical issues are considered less during the application process, and you can pay the premium through easy monthly installments.