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Final Expense Life Insurance: Pros and Cons of Death Insurance
A Final Expense Life Insurance Policy - Final expense life insurance helps you to pay for cremation and burial costs. Find out the advantages and disadvantages of death insurance for over-50's. You may wish to take out final expense life insurance to ensure that your family isn't left with a substantial bill or debt when you're no longer with us. Death insurance, as it is also known, pays a defined cash lump sum to your estate based on the payment of a fixed monthly premium. This payment either continues for the remainder of your life or until a specific number of payments have been received. After meeting your final resting costs, you may be able to leave an inheritance for your grandchildren.

Advantages of Final Expense Life Insurance for Over-50's

. When you pass away, burial life insurance pays a substantial cash benefit to your estate. This can be used to meet funeral expenses or leave money to a loved one.. Provided that you're aged between the age of 50 and 80, you're guaranteed to be accepted for a funeral insurance plan.. Payment is fixed from the outset and will never change.. The loss of a family member is a very stressful time. Funeral expense insurance ensures that financial problems don't further exacerbate matters.. Knowing that you've got burial insurance allows you to rest more easily, especially if you don't have savings that can be used to pay for your burial or cremation.

Disadvantages of Over-50's Death Insurance Policies

. You'll be expected to pay a premium to the insurer for the remainder of your life or until your payments equate to the eventual cash benefit. For example, you'll need to pay the Post Office £24 a month in order to secure a guaranteed cash sum payment of £2,989.. If you stop paying the monthly premium, you'll no longer be covered. It is advisable to make sure that your premiums are affordable and to make payment by direct debit.. Unlike other whole of life policies, death insurance has no investment element. This means that you cannot cash-in your policy if you experience financial difficulties.. Any cash payment will normally form part of your estate so may be subject to taxation. Find out your Inland Revenue inheritance tax threshold if you have other savings, investments or own property.. Burial insurance is up to 25% more expensive for men. This is because, on average, women normally live for longer than men.

Funeral Expense Insurance vs Funeral Pre-payment Plan

A final expense life insurance policy provides an affordable way of ensuring that there is sufficient money left in your estate to meet your final resting costs. It involves paying an insurer a monthly premium for the rest of your life and personal circumstances can and do change. If you stop paying, coverage will cease. Much depends on your ability to manage your finances and whether you're already financial stretched.
If you don't think that you can sustain your death insurance premiums, you may prefer a funeral pre-payment plan. This involves breaking the cost of a funeral or cremation into a reduced number of larger payments. Although you'll have to find more each month, the payments won't be for as long. You also don't have to worry about the effect of inflation and whether you'll have enough money set aside.
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