If you’re approaching the later years of life and do not have a life insurance policy in place, it will be difficult to qualify for affordable coverage. The good news? There are still available options to keep your loved ones financially protected if you were to pass away, one of which is final expense insurance. Here we take a closer look at the benefits of purchasing this type of coverage.
What is Final Expense Insurance?
Final expense insurance is a type of insurance used to provide coverage to your loved ones for any debt or bills that you leave behind after you have passed away.
5 Reasons to Purchase Final Expense Insurance
It covers funeral expenses. Did you know the average cost of a traditional funeral is between $8,000 to $10,000?! Cremation is less expensive, however, it can still cost upwards of $5,000. Final expense insurance would provide coverage for funeral expenses which would undoubtedly be a huge relief for your loved ones.
It will help pay for medical bills. If there are any outstanding medical bills after your death, your loved ones will be responsible for the payments. A final expense insurance policy will provide the necessary funds to either cover your medical bills or help with making payments towards the debt.
It gives your loved ones a financial cushion. During the time after your passing, loved ones will benefit from having a financial cushion to rely on. Perhaps, they need to take time off from work to get things in order or simply need time to mourn your passing. Funds that are received from final expense insurance can be applied to anything your loved ones need financial assistance with.
It allows you to purchase a business partner’s shares. If you are in a business partnership, it is a good idea to purchase final expense insurance should your business partner pass away. The money received from this coverage can be used to pay off his or her share of the company’s obligations.
It can be put towards paying estate taxes. As of 2020, if your estate is valued over $11.58 million ($23.16 million for couples), the remaining value is subject to taxation (a.k.a. estate tax). With final expense insurance coverage, your loved ones can use the benefit to pay any estate taxes, and therefore, will not be forced to sell off any assets.
Maggi Tax Advisory & Financial Group can help you protect your loved ones.
With careful preparation, end-of-life planning doesn’t have to break the bank. At Maggi Financial Tax Advisory & Financial Group, we recommend that our clients who are approaching retirement or have already retired, include end-of-life expenses in their retirement planning package. One of the best ways to prepare is to purchase final expense insurance. To learn more about how you can protect your loved ones, call our Hillsborough office at (813) 850-0131 and our Pinellas/Pasco office at (727) 351-6168.
