As you age, you may have realized that you made a mistake in not getting life insurance. You may notice that long-term care insurance could have been a helpful option to have. However, now that that’s in the past, final expense insurance is coverage you can’t afford to be without. This type of plan covers so much more than you would expect and is affordable to many. Here is an overview of what final expense insurance does cover.
How Much Coverage is Available?
Before planning to spend so much on your funeral, you should know how much coverage is available from final expense insurance. Although the funds can be used for other expenses, its primary purpose is to take care of the deceased final expenses. So while a regular life insurance can pay over one million to a beneficiary, your final expense policy will cover roughly up to $30,000.
Your Funeral and Final Resting Arrangements
As stated the primary reason a person takes out final expense insurance is to cover funeral and final resting arrangements. This is the largest expense you’ll come into with it. However, there are a few other main expenses you’ll look at covering before you beneficiaries receive any leftover monies.
Nursing Home and Medical Expenses
Your final years may not be as healthy. In fact, many people sign up for final expense insurance as they realize they are sick and will pass on soon. They may have not had life insurance coverage or enough of it. At this point, you may be too sick to be approved, at least at an affordable rate. So while you are in a nursing home or receiving home health care, those bills are racking up. You may have arranged to pay them along the way, but if you’re behind, your final expense payout can cover the rest. This goes for any hospitalizations and other medical care as well.
If you were unable to pay off debts such as credit card bills, utility bills, tickets, government fines, and such, these bills do not go away just because you’ve passed on. The payout from the final expense insurance can be used to go towards those old debts, ensuring your loved ones aren’t left with that burden to pay them off.
As you can see, there are other bills you can cover with final expense insurance. It is, however, still primary to cover your final funeral and resting expenses.