The last expenditure policy is a kind of whole life insurance with a low death benefit and a more relaxed underwriting process. Depending on the insurer, last expenditure insurance may go by a variety of names, including burial insurance, funeral insurance, whole life insurance, simplified issue whole life insurance, and modified whole life insurance. Small whole life plans, having a face value (death benefit) between $2,000 and $50,000, go by a variety of marketing names in the insurance business.
According to Richard P. Sabo, a financial planner and insurance fraud specialist in Gibsonia, Pa., there is no difference between last expenditure insurance and regular life insurance other than the fact that insurers offer smaller policies to make it more inexpensive.
The death benefit from last cost insurance is meant to pay for things like a funeral or memorial ceremony, embalming, and a coffin, or cremation. However, the death benefit may be used for whatever the recipients see suitable, including but not limited to, paying off debts or taking a vacation. Your valuables, your property, and your legal responsibility to others are all protected by a conventional homeowner’s insurance policy.
To provide for their families, “they sell the last expenditure insurance to those who are older and beginning to worry about the funeral expenses,” explains Sabo. Do some individuals need a new life insurance policy when they already have one that may be used to cover final expenses? He also notes that prepaying for one’s burial might make last expenditure insurance unnecessary. One can take advice from final expense insurance California.