Final Expense Insurance Pros and Cons

You have the flexibility to choose between monthly or annual premium payments.

Pros of Final Expense Insurance

The most positive features are as follows:

  • Protection at an affordable price
  • Premiums are payable to age 100 and guaranteed never to increase.
  • It offers the security of guaranteed death benefit.
  • You have the flexibility to choose between monthly or annual premium payments.
  • Cash value accumulates tax-deferred.
  • You choose whether or not to use the benefit for burial expenses.
  • With a Final Expense Plan, if you have chosen the Funeral Home or Cemetery as your beneficiary, your family or heirs can use any excess funds for whatever they deem necessary, such as paying for outstanding debts like credit cards, your mortgage, hospital bills due, or any other use of the funds they feel is appropriate.
  • The policy is eligible to earn dividends, however, dividends are not guaranteed. Dividends can accumulate at interest, purchase paid up additional insurance, reduce future premiums, or be payable in cash. The choice is yours.

Cons of Final Expense Insurance

Some impediments of Final Expense Insurance are as follows:

  • If you choose your family or loved ones to be the beneficiary of a policy such as burial insurance, they have the right to decide whether to carry out the funeral plan you created – or not.
  • Since the amount of insurance is usually a fixed amount, it may not be enough to fully cover the total costs of your funeral costs and/or the costs related to the settlement of your estate.

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