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Beat the jargon: Final Expense Life Insurance

Todays Date: November 18, 2018

It is unfortunate, but death really does come to us all; this is why it is crucial that we invest in a policy such as final expense life insurance. By taking out this option of burial policy, it is possible to leave all the hassle and stress of death, for you and your loved ones, behind.

A burial policy, such as the final expense life insurance option, is purposefully designed to help with the fees involved with your funeral. Whereas some are strict about what the funds can be used for, this insurance policy is a lot more flexible. As well as paying for the funeral arrangements, the funds can be used to pay off existing debts after you have passed away. Legal fees and medical bills do not have to be sorted out and paid for by your relatives. There are no stipulations about how the money should be used, other than to clear the costs of the funeral.

Some death insurance policies do not allow you to name a specific beneficiary, whereas this type of policy does. You can then discuss with the named beneficiary how you would like the money to be spent after you have died. One advantage of this policy, certainly for the beneficiary, is that any extra funds belong to them after all the funeral expenses and specified debts have been paid off.

You could opt to elect a spouse, partner, friend or one of your children as the beneficiary; the list is practically endless. If you decide to have one of your children as the beneficiary, it is recommended that you hold the policy in some kind of trust. This is because the funds may be subject to tax and by adopting this method, these issues are ironed out.

Applying for final expense life insurance is quick and easy; most of the insurers allow you to apply online and you will get quick decision. Most of the time it is not necessary to answer any questions relating to your health or be requested to undergo a medical examination.

The insurance agent may request that you take what is known as a guaranteed policy. This kind of burial policy means that there is a required waiting time before the policy becomes “effective”. If you should pass away during the waiting period, the paid premiums are returned in full. If you pass away after the specified waiting period, then the funds will be paid in full to the named beneficiary.

You can take final expense life insurance policies out in joint names. It should be noted however, that most insurers will only pay out the death benefit for the first death. The subsequent death will receive no further payout. The premium you will pay will be a set amount that will not change during the period of that particular policy. The policy will also remain intact as long as the premiums are paid up to date.

For all of these reasons, it is best to look into getting a final expense life insurance policy sooner rather than later. By getting these types of policies in place, you can get on with enjoying the rest of your life.

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