Final expense insurance may not be something you’ve thought about until recently. Whether you’re considering this kind of insurance for yourself or someone else, it’s common to ask the question, “Is it even needed?”. And if it is, why?
The correct answer to these questions are going to vary from person to person. Everyone has a unique situation which must be accounted for in their decision to buy final expense insurance or not.
To best answer these questions for yourself, Shell Mutual Insurance is helping with some key facts about final expense insurance—what it is, why it’s valuable, and who might need it.
Death Can Be Expensive
One of the most compelling reasons why final expense insurance is so popular is because of how expensive it is to die.
Funerals—whether for cremated, buried, or interred persons—can cost upwards of $15,000, even when the burial plot is owned. These costs are often a shock for those who are left responsible to pay them, which is often close family members or friends.
In the United States, the average funeral costs between $7,000 and $10,000. This doesn’t even include variable expenses like outstanding debts and medical bills, all of which can quickly become an overwhelming burden for a family to take on after death.
If there is already a plan in place to account for these inevitable expenses, then final expense insurance might not be something you necessarily need.
However, if you don’t know where this money will come from, a final expense insurance policy could be an incredible value.
The Final Expense Insurance Solution
To give you peace of mind and to make the dying process as smooth as possible, a final expense insurance policy from a reputable insurance provider can make very good sense.
Once you’re covered, you won’t have to worry about who’ll pay for what when the time comes for the funeral service expenses, burial fees, or other death-related costs.
Here’s how it works.
- Shell Mutual Insurance shops the marketplace of insurance providers for you, locating the best policy to meet your needs. Because we have your best interest in mind, you get matched with the ideal policy for you.
- You choose between two categories of coverage: Guaranteed Issue or Simplified Issue. You cannot be turned down for a Guaranteed Issue policy, and there aren’t even any medical questions to answer.
- As you pay your premiums every month for your insurance plan, your policy builds value over time. This value can be borrowed against in times of need.
- After the death of the insured, the death benefit of the policy is paid out to whomever is listed as the beneficiaries. This payout is 100% income tax-free, and is received within just a few days or weeks after the death certificate is provided to the insurance company.
- The death benefit is then used by the beneficiaries to pay for funeral and other final expenses.
For some people, a hybrid Guaranteed Issue/Simplified Issue policy is best. This kind of final expense insurance policy is often called ‘modified’ or ‘prorated death benefit’ life insurance. In this case, the policy pays a death benefit according to a schedule of percentages that increase over time. Think of it as a kind of “middle-of-the-road” life insurance policy. Many find it to be a great fit for them.
The great news about final expense insurance is that most policies can be approved and issued almost immediately. Some policies have a payment clearing period of just a few days, after which you’ll receive the paperwork related to your insurance coverage in the mail. Then, as long as your premiums are paid on-time, you’re covered, and peace of mind is yours.
To Learn Your Final Expense Insurance Options, Contact Us
Now that you know more about the specifics of final expense insurance and why it’s great coverage to have, you might be wondering how much it costs.
That’s where Shell Mutual comes in.
We’ll assist you in finding the best final expense insurance coverage with premiums you can work into your budget. And, in most cases, we can get you covered within just 24 hours.
Imagine not having to worry about how you’ll get the money for the funeral, burial, or other death-related expenses. Freedom from this worry is possible with adequate final expense insurance coverage from Shell Mutual Insurance.
To get started, and to receive your free, no-obligation quote for immediate coverage, contact us today.