As the Baby Boomer generation begins to enter their retirement years, the demand for senior life insurance has increased. The most popular types of senior life insurance plans are what’s known as burial insurance policies or final expense insurance policies. We believe they’re becoming highly sought after because they’re so simple in nature.
These policies are generally smaller whole life insurance plans with death benefits typically ranging from $3,000 to $50,000. They don’t have most of the sticky requirements that traditional life insurance policies carry. Most insurance companies simply ask a series of health questions followed up by a confirmation phone call to verify the answers. Sometimes a prescription history check is required to further clarify and verify the accuracy of the answers to the health questions. Most of these policies can be researched, purchased, and put in force all in the same day.
Most people purchase burial or final expense insurance to ensure that those left behind are not responsible for the insured’s burial costs. However, the death benefit can be used in a wide variety of ways. Let’s look at the three most common uses for the death benefit.
The first and most common use is to cover the insured’s final expenses. The main goal of the insured is to avoid leaving financial responsibility for funeral and burial costs to those left behind.
The second use is to pay off any outstanding medical expenses or other debts. The passing of the insured can leave a financial strain on the remaining family. The death benefit can help alleviate the stress by providing funds to pay off the debts and assist in providing a fresh start.
The third use of the death benefit is to leave behind a small inheritance. While the original goal of the plan is not to create wealth for the remaining family, it is nice to be able to leave some sort of financial legacy. It may be as simple as providing an opportunity for your loved ones to take a trip to your favorite spot, purchase something to remember you by, or even potentially assist with their education needs. No matter the use or size of the gift, it’s a heartwarming gesture that can speak beyond your lifetime.
If you have questions or would like to explore how a burial insurance policy could benefit your family, feel free to contact us directly at 866-699-1884. Our insurance professionals are licensed in most states and would be glad to assist in any way that we can.