Final expense insurance is a whole life insurance policy that has a small death benefit and is easier to get approved for. Final expense insurance is also called “funeral insurance,” “burial insurance,” “simplified issue whole life insurance,” or “modified whole life insurance.” All are marketing terms that the insurance industry uses to sell small whole life policies with a face value (death benefit) of $2,000 to $50,000
Let’s say you’re retired, no longer have life insurance through your employer, and don’t have an individual life insurance policy. You also don’t have a comfortable nest egg and are worried about the financial burden you’ll leave on your spouse and/or kids when you die.
The smaller death benefit of final expense insurance makes the premiums more affordable, as Sabo notes above. And the policy is permanent. No matter when you die, your heirs will get the death benefit you want them to have, as long as you’ve paid your premiums.
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