As we enter open enrollment season, it’s the perfect time to make sure your health insurance plan meets all your needs. Most of us think of health insurance in terms of medical costs, but a frequently overlooked area is final expense insurance—a type of life insurance specifically designed to cover end-of-life costs. For many, the cost savings from medical coverage adjustments can open the door to other options, like final expense insurance, which can be affordable, adaptable, and vital for ensuring financial security for your family.
Why Consider Final Expense Insurance?
Final expense insurance provides a modest benefit that can be used to cover funeral costs, outstanding medical bills, and other end-of-life expenses. The average funeral cost alone in the U.S. can range between $7,000 and $12,000, depending on location and services. This can put a significant financial burden on families, especially if they aren’t prepared for it. Final expense insurance offers an affordable way to protect your loved ones from unexpected costs, allowing them to focus on celebrating a loved one’s life without worrying about finances.
Key Benefits of Final Expense Insurance
- Affordability
Unlike larger life insurance policies, final expense insurance is usually for smaller amounts (often between $10,000 and $30,000), which can make it more affordable than traditional policies. Premiums are typically fixed, making it easier to plan for and budget over the long term.
- Accessibility
Final expense insurance is often available to people who may struggle to qualify for traditional life insurance due to age or pre-existing conditions. For example, some plans allow applicants up to age 80 and often don’t require a medical exam, although a few health questions may apply.
- Whole Life Benefits
Final expense policies are usually whole life insurance, which means they don’t expire as long as premiums are paid. Whole life policies also build cash value over time, offering a small additional benefit that can be accessed if necessary.
How Health Insurance Savings Can Support Final Expense Coverage
If you find savings by adjusting your health insurance plan, those funds could be redirected to secure a final expense policy. For instance, if you’re paying lower premiums for your health insurance after reassessing your current needs or switching to a new plan, using some of that difference for a final expense plan may add significant value to your overall financial planning.
Steps to Consider When Choosing Final Expense Insurance
- Estimate the Amount You’ll Need
Consider your specific needs, such as funeral costs, outstanding medical bills, or any other obligations you’d like covered. Consulting with a professional can help you determine an appropriate coverage level.
- Compare Plans and Providers
Some final expense plans include additional benefits, like accidental death coverage or riders that allow early access to benefits under certain conditions. Comparing plans ensures you get the best value for your needs.
- Review Health Questions Carefully
Many final expense plans are simplified issues, meaning they don’t require a full medical exam. However, some plans do include health questions, so it’s helpful to understand any exclusions that might apply.
- Consider Whole Life Versus Term Options
While most final expense plans are whole life, there may be term options that offer more flexibility. Understanding the difference can help you decide which type best aligns with your family’s needs.
Schedule a Consultation to Discuss Your Options
Open enrollment is the perfect time to review your health insurance and explore the benefits of final expense coverage. I’m here to help you navigate these decisions and make sure every aspect of your coverage plan aligns with your needs.
If you’re interested in learning more, please visit jkappconsulting.com to schedule an appointment. Let’s work together to secure a plan that provides comprehensive protection for you and your family, covering both health and end-of-life expenses.
Until next week, take care and remember—peace of mind is one of the best investments you can make. Peace out!
