Life Insurance / Final Expense

Life insurance can provide financial support to beneficiaries, such as a spouse, children, or other dependents, in the event of the insured person's death. The death benefit can replace lost income and help cover ongoing expenses like mortgage payments, tuition, or daily living costs.

Life insurance proceeds can be used to pay off outstanding debts, such as a mortgage, car loans, or credit card balances, so that surviving family members are not burdened with financial obligations after the insured's death.

Life insurance can play a role in estate planning by providing liquidity to cover estate taxes, administrative expenses, or to equalize inheritances among heirs. It can also be used to create a legacy or charitable giving.

Life insurance is commonly used in business settings to fund buy-sell agreements, key person insurance, or to provide funds for business continuation in the event of an owner or key employee's death.

Permanent life insurance policies can be used as a component of retirement income planning, although it's not the primary purpose of most policies. In many cases, policyholders can access funds through loans or withdrawals while they are alive, which can supplement retirement income. Keep in mind that doing so may reduce the death benefit.

Final expense policies usually provide coverage amounts ranging from a few thousand dollars to tens of thousands of dollars, depending on the specific policy and the insurer. The purpose of this coverage is to help pay for funeral expenses, including funeral home services, burial or cremation costs, casket or urn expenses, and other related fees.

Final expense policies often have simplified underwriting processes compared to traditional life insurance policies. This means that applicants may not be required to undergo a medical exam or provide extensive medical history. Instead, insurers may ask a few health-related questions to determine eligibility for coverage.

Some final expense policies are guaranteed issue, meaning that applicants are guaranteed acceptance regardless of their health status or medical history. These policies typically have higher premiums and lower coverage amounts compared to policies with medical underwriting.

Final expense policies are usually permanent life insurance policies, meaning they provide coverage for the insured's entire life as long as premiums are paid. Unlike term life insurance policies, which provide coverage for a specific period of time, final expense policies do not expire as long as premiums are maintained.

Like most life insurance policies, you can designate who will receive the death benefit and make changes later on. 

Also, you usually have options if you decide to stop making premium payments. You can either withdraw the available cash value OR take a reduced paid-up death benefit.