Life & Final Expense

Life Insurance and Final Expense Insurance are two types of coverage designed to provide financial security to your loved ones after your death. While both offer protection, they serve different purposes and are tailored to different needs.

Life insurance provides a death benefit to your beneficiaries after you pass away. This benefit can be used for various purposes, including replacing lost income, paying off debts, covering living expenses, and funding future needs like college tuition. 

• Coverage Period: Provides coverage for a specific term, usually 10, 20, or 30 years.
• Affordability: Generally more affordable than permanent life insurance.
• No Cash Value: Pure protection without a savings component; the policy expires at the end of the term unless renewed.
• Best For: Individuals looking for affordable coverage to protect dependents during critical financial years (e.g., while paying off a mortgage or raising children).

• Coverage Period: Provides lifetime coverage as long as premiums are paid.
• Cash Value: Builds cash value over time, which can be borrowed against or withdrawn.
• Fixed Premiums: Premiums remain the same throughout the life of the policy.
• Best For: Those looking for lifelong coverage and a policy that can also serve as a financial asset.

• Flexible Premiums: Allows for flexibility in premium payments and death benefit amounts.
• Cash Value Growth: The cash value grows at a rate tied to market performance or a fixed interest rate.
• Best For: Individuals who want permanent coverage with the flexibility to adjust premiums and benefits as their financial situation changes.

• Investment Component: The cash value can be invested in various sub-accounts, similar to mutual funds.
• Potential for Growth: Offers the potential for higher returns, but also comes with higher risk.
• Best For: Those comfortable with market risk and looking for both life insurance coverage and investment opportunities.

Final Expense Insurance, also known as Burial Insurance or Funeral Insurance, is a type of whole life insurance designed specifically to cover end-of-life expenses, such as funeral and burial costs, medical bills, and other debts. 

 Policies typically range from $5,000 to $25,000, enough to cover funeral expenses and minor debts. 

Often available with simplified or guaranteed issue, meaning you may not need a medical exam, and acceptance is typically easier. 

Disability insurance policies often have an elimination period (waiting period) before benefits begin, typically ranging from a few days (for STD) to several months (for LTD) 

Designed to be affordable, particularly for seniors or those on fixed incomes 

Final Expense policies are designed to pay out quickly, ensuring that your loved ones can cover funeral costs and other immediate expenses without delay. 

The premiums and death benefit amount are typically fixed, providing predictability for policyholders.