Traditional Life Insurance Vs. Final Expense: Everything You Need To Know

​There are differences between traditional life insurance and final expenses insurance that you should know about before making a decision. Even if both policies are reasonable, you may find that one is better than the other.

Traditional Life Insurance
If you pass away and leave behind dependents or other beneficiaries, traditional life insurance may help them financially. ​​Life insurance can be purchased in two primary forms: term (which provides coverage for a certain length of time) and whole (which provides coverage for one's whole life). 

All life insurance policies, whether term or whole, pay out a death benefit to beneficiaries when the policyholder dies. Most often, the money is used to take care of a spouse or dependent children, but it can be used for any purpose the recipient chooses.

Final Expense Insurance
Final expense policies are a type of permanent life insurance that may pay for the costs of a person's final resting place. If you keep paying the premiums, you may be covered for the rest of your life. 

A death benefit is given to a designated person after someone dies. This money is typically used to cover final expenses such as funeral charges, cremation fees, burial expenses, and any unpaid bills or debts. 

Making A Decision
When deciding between life insurance and final expense insurance, there are a few things to keep in mind:

1. Age
   Buying a traditional life insurance policy while young and healthy usually results in lower premiums and a smoother application process. On the other hand, you can sign up for final expense insurance even if you're well into your 80s, as it was designed specifically for the elderly.
   
   
2. Financial Situation
   Life insurance is better because the premiums are lower if you still have large out-of-pocket costs, like a mortgage or family members who depend on you. However, premiums for final expense policies can be expensive, especially if purchased later.
   
   
3. Health
   Final expense insurance may be a good option if you have health issues that make it difficult to qualify for traditional life insurance. But if you're young, healthy, and need more financial security, you could be better off with traditional life insurance.

Conclusion
To make an informed choice, you need to know the differences between regular life insurance and final expenses insurance. Even if both policies are reasonable, you might find that one is better than the other. 

At Lapeira & Associates LLC, we aim to give you insurance policies that cover everything you need and make your life easier. We're here to assist you in finding the right policy for your needs. Contact our company at (855) 963-6900 for more details about our services. If you're interested in a free quote, CLICK HERE now. Topics and coverage discussed in this article are not guaranteed, consult with your agents to determine what your policy does and does not cover. We are more than happy to help!