Final Expense Life Insurance

Pre-planning Options: Final Expense Life Insurance vs. Prepaid Funeral Plans

Planning for the future is a thoughtful way to ensure your loved ones are taken care of during difficult times. When it comes to covering end-of-life expenses, the two primary options are Final Expense Life Insurance Plans and Prepaid Funeral Expense Plans. But only one option provides both savings and flexibility. 

Let's explore the benefits of each plan to help you make an informed decision.

Final Expense Life Insurance 

1. Unmatched Flexibility: A final expense life insurance plan provides a cash benefit that your beneficiaries can use for any purpose - not just funeral expenses. This flexibility allows them to cover medical bills, outstanding debts, or any other financial needs, offering peace of mind that goes beyond the funeral.
2. Immediate Guaranteed Payout: A final expense life insurance policy guarantees a fixed payment to your beneficiaries, ensuring they receive the funds they need when they need them most. This certainty can be a significant relief during an emotionally challenging time.
3. Inflation Protection: While prepaid funeral plans lock in today's prices, a final expense life insurance plan offers the advantage of adjusting the cash death benefit on the front end to account for inflation. This means your loved ones are better protected against rising costs, ensuring they have sufficient funds when the time comes. You’ll also have the option to leave a benefit amount that is more than the price of a funeral, with the remaining benefits being distributed to your loved ones as you wish.
4. Complete Portability: The policy is not tied to a specific funeral home or service provider, giving your loved ones the freedom to choose the      arrangements that best suit their needs and preferences. This flexibility can be invaluable, especially if circumstances change.
5. An Option to Change Your Mind: A final expense whole life insurance plan has a guaranteed schedule of cash values available to the policy owner.      That means that if the policy owner ever changes their mind for any      reason, or has an immediate need for cash, then they have access to the full policy cash value at any time. Cash values are modest in early years and grow higher every year – guaranteed.
6. Any Remaining Benefits are Paid to Family Members Directly: If you inflation-proof your policy and in the event of a premature death (generally      in the first 10-15 years), your Final Expense Life Insurance plan may offer a benefit amount that could be higher than the cost of your funeral. In that case, all excess benefits would be paid out directly to your named beneficiaries, and none would be retained by the funeral home.
7. Simplified Issue and Guaranteed Issue Options. Regardless of health issues that become more common as we age, you have both simplified issue and guaranteed issue final expense life plan options available. That means for those planning now, you have an option for a plan with absolutely no health questions – a big relief for those with health conditions.
8. Long Term Savings.  Final Expense Life Insurance includes a savings component. That means that the longer your policy remains in force, the more valuable it becomes to you.  In fact, unlike a prepaid funeral expense plan, if your situation changes a final expense life insurance policy can be surrendered at any time in the future, and the policy owner will receive 100% of the cash surrender value of the policy - no questions asked.  

Prepaid Funeral Expense Plans

1. Non-Guaranteed Plans: Some prepaid plans do not lock in prices for goods and services. If costs increase over time, families may be responsible for paying the      difference between the prepaid amount and the current prices at the time of need.
2. Guaranteed Plans: While more expensive, other prepaid funeral plans allow you to lock in today's prices for funeral services, protecting against inflation and rising costs.
3. Detailed Planning: These plans enable you to outline every detail of your funeral, from the type of service to the casket or urn, ensuring your final wishes are honored.
4. Immediate Coverage: Prepaid plans often cover the full cost of the funeral immediately upon purchase, providing peace of mind that everything is      taken care of.
5. Additional Services: Families might choose to add services or products not covered in the original prepaid agreement, leading to extra expenses beyond the prepaid amount.
6. Vendor-Specific: Prepaid plans may be tied to a specific funeral home or provider, which could limit flexibility if you eventually move or if a funeral home goes out of business.

Why Final Expense Life Insurance Stands Out as a Better Value

Choosing between Final Expense Life Insurance and a Prepaid Funeral Expense Plan depends on your priorities. However, a final expense life insurance plan offers unmatched flexibility, guaranteed payouts, inflation protection, complete portability, an option to change your mind, and any remaining benefits stay with your family. These features ensure that your loved ones have the financial support they need, no matter what.

Affordable & Guaranteed Monthly Premiums. Final Expense Life Insurance plans are often found to be easier on a person’s budget, as payments can be spread out over several years, or over a lifetime, and payments can be as frequent as monthly to coincide with guaranteed Social Security income. All funding options will provide the same full lifetime benefit protection beginning on the very first day your final expense life insurance coverage is bound.

Pre-Planning with Final Expense Life Insurance is a compassionate gift to protect your loved ones, easing their burden during a challenging time. Explore your options today and secure peace of mind for tomorrow. Click below to have a licensed professional provide a no-obligation custom proposal in just minutes.