It’s time for you to speak with an agent about life and final expense insurance.
Life and final expense are ancillary insurance products. Though it may be unsettling to think about, your Medicare plan does not cover the high costs that come with death. It is important for you to figure out your life insurance plan now, so that your loved ones don’t have to break their piggy banks to pay for your final expenses.
Life insurance comes in two forms –
You may want to consider a term life plan if you are suffering from a temporary illness or injury and will not need the same amount of coverage for the next year. Speak to an agent to determine which form of life insurance is best for you and your needs.
Most importantly, you’re going to need a final expense plan. Final expenses are any costs associated with funerals, burials, and sometimes medical bills for final hours.Having final expense insurance means that when you die, your appointed beneficiary (typically a spouse or close relative) – will be reimbursed for the expenses. You will usually have the ability to change your beneficiary after your policy has been active for a year.
Though life and final expense insurance are very similar, they do come in the form of two separate policies, and neither are covered by Medicare. However, you can set up your Medicare Advantage plan so that unused funds go towards your final expenses for a loved one.
Final expense insurance can cost anywhere from $5,000 to $50,000 depending on your age and health at the time of purchase. Life insurance will provide more coverage at a higher cost. While final expense insurance will help cover final medical and burial costs, life insurance will help to support the family members you leave behind who may have been counting on your paycheck. It can pay for any outstanding debt, such as a mortgage.
Essentially, life insurance provides more coverage. Remember the differences:
|Funeral and burial costs||Outstanding bills, loans, and mortgages|
|Small outstanding medical bills||Large outstanding medical bills|