The cost of a funeral can be quite substantial, but there is no need to worry about this when you put a final expense insurance policy in place to provide suitable coverage.
Final expense insurance is essentially an adapted version of a whole life policy that provides a lesser sum that would be paid with a standard life policy. In some situations, it can be called “funeral insurance” or “burial insurance”.
Some people may consider the payout from a whole or term life policy to be unnecessarily high and the premiums too expensive. Accordingly, a more modest policy, such as this one, may be more suitable. Others may have circumstances that means that a standard life policy is difficult to obtain, so this is a good alternative as approval is more likely to be forthcoming.
If you already have a life insurance policy, it is not necessary to also take this one out.
No. Though you can specify your wishes in your will, your beneficiary can spend the money as they choose.
If you forget to pay the premiums, the policy will lapse and your beneficiary will not receive any payout.
The amount of the payout will vary, but will typically be between $2,000 to $50,000.