Whole Life insurance coverage helps a family cover final expenses when a family member dies. The average funeral in America right now is $12,000. Final Expense coverage eases the financial burden placed on loved ones after a death of a family member. The coverage is permanent if you qualify and your rate never increases. Your benefits never decrease. A lot of families use final expense for Social Security income replacement in a cash accumulating account that can temporarily cover missed payments as well. A lot of times they can come in different types like preferred, standard and basic with adjusted prices for each. There is no medical exam with whole life insurance, but the healthier you are the better your rate will be.

Typically, face amounts are dictated depending upon the carrier’s terminal illness riders based on accident accelerated death benefit riders. There’s no medical exam, no blood profile, no oral swabs, none of that stuff that isn’t fun for people. It is just simple basic health questions and, typically, it covers the final expense. That’s any costs with funeral expenses and here’s a big misconception with some people: they think that if you buy a policy for your loved one that the check goes to the funeral home. It doesn’t. It goes to the beneficiary, so whoever the owner of the policy gets to pick their beneficiary. They get to pick who gets the money, not the funeral home.

It’s not subject to probate fees, other financial obligations that a family faces when losing a loved one. This is a great plan because it is the kind where benefits never go down and the premiums never go up. It’s just a really standard, easy-to-explain plan that can be approved with a couple of health questions. There’s cash value and if you miss a payment the cash can make your premium payments for you, so there are also all kinds of riders that can be added, and if you do surrender at risk cash value. After a certain period of time, some companies have living benefits that live inside of it.