Learn How to Preserve Your Legacy with Final Expense Insurance

Learn How to Preserve Your Legacy with Final Expense Insurance

If you haven’t bought a life insurance policy earlier and now, in your advanced age, you are finding it difficult to qualify for life insurance, you have one option that you can consider that will considerably reduce the financial strain that your family may experience while paying for their daily expenses after your death, your end-of-life costs along with other related expenses.

The blog discusses why buying final expense insurance, a type of whole life insurance policy, maybe your best option and how by covering big expenses after your death, this insurance can provide financial security for your loved ones.

Table of Contents:

The 5 Major Expenses Covered by Final Expense Insurance

In the absence of a sizeable fund, your family may reel from the enormous financial burden that is thrust on them after your death. The death benefit from your final expense insurance coverage may help them to pay several major expenses right after your passing and protect them from falling into complete financial disarray.

  1. Funeral
    Funerals and burials can be expensive. According to the National Funeral Directors Association, funerals, on average, can cost you over $9,000. To protect your family from making such a major expenditure from their resources, the funds from your final expense insurance can help pay for your end-of-life costs, including the planning and execution of the funeral.                                                                                                                            
  2. Final Treatment Costs
    The total medical bill toward your final treatment costs may include inpatient care, emergency care, nursing care, prescription drug cost, co-payments, and other related expenses. Chances are that it may add up to an exorbitant amount. Even if you have health insurance like Medicare or Medicaid to cover your medical expenses, in most cases, they can cover only about two-thirds of the total expenses.
    The outstanding hospital bills that are not covered by your health insurance can be paid from your final expense insurance coverage.
  3. Family’s Future Financial Welfare
    The money from your final expense insurance can be used by your family for their living expenses or a loan that they may need in your absence. Also, if your spouse takes a break from work to grieve your loss, the money can be used as a substitute for lost income.
  4. Outstanding Debt Settlement
    The final expense insurance coverage can be used by your family to settle the debts that you may have left unpaid during your lifetime. Nearly 75% of Americans die with unsettled debts. Among the most common debts are credit card debts and unpaid mortgages, car loans, personal loans, and student loans. Your family can use the death benefit from your final expense insurance to pay the full amount or a part of the debt depending on the debt amount.
  5. Estate Tax Payment
    If you own an estate value worth over $12.92 million, your assets may be taxed after your passing away. Your family may pay the estate tax from your final expense insurance death benefit, thus avoiding a scenario where they would have to sell assets to pay the tax amount.

Secure Your Family’s Future with Final Expense Insurance at Medicare Advisors

Don’t leave your family’s future up to chance. Secure it today with final expense insurance from Medicare Advisors. With Final Expense Insurance, you can have peace of mind knowing that your loved ones will be taken care of, even after you’re gone. Contact us now to learn more and get started on securing your family’s future.

Some Common FAQs

What is the final expense insurance for Medicare?

Final expense insurance is a type of life insurance policy designed to cover the costs associated with passing away, such as medical bills and funeral expenses. Medicare does not cover final expenses, as it only covers medically necessary expenses that are required for the diagnosis and treatment of an illness or condition. Therefore, final expense insurance can help beneficiaries avoid the financial burden of end-of-life costs.

What is the maximum amount of final expense insurance?

The maximum amount of final expense insurance varies depending on the insurance company and the type of policy. Typically, final expense insurance policies offer different coverage amounts, with an average range of $5,000 to $50,000 in coverage. Some factors that may affect the maximum amount of final expense insurance are the age and health of the applicant, the type and duration of the policy (term or permanent), the premium and payment options, and the underwriting and eligibility requirements.

How much does final expense insurance cost per month?

The cost of final expense insurance per month depends on several factors, such as the coverage amount and type of policy, the age and health of the applicant, the gender and smoking status of the applicant, the location and state regulations, and the insurance company and its rating. According to some estimates, the average monthly premium for a $10,000 final expense policy for a 65-year-old non-smoking female is $38. For a 65-year-old non-smoking male, it is $50. However, these are only averages and the actual cost may vary depending on the individual situation and the policy details.

Is final expense insurance tax free?

Generally, final expense insurance benefits are tax free for the beneficiaries, as long as they are paid directly to them and not to the estate of the deceased. However, there may be some exceptions or limitations depending on the state laws and the policy terms. For example, if the beneficiary is not a relative or a spouse of the deceased, they may have to pay inheritance tax on the benefits. Also, if the policy has a cash value component that accumulates interest, that interest may be taxable. Therefore, it is advisable to consult a tax professional before purchasing or receiving a final expense insurance policy.

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