What is a Final Expense plan?
A Final Expense plan is used to financially prepare your loved ones when your time comes. Almost all Final Expense plans use life insurance as a funding method. This is because life insurance offers immediate survivorship benefits that other plans can’t offer.
Life Insurance Vs. Savings Plan
There are very few options when it comes to making sure your final expenses aren’t burdened on your loved ones. Life insurance is often the go-to method because it offers immediate survivorship benefits, where eventual payout is more than overall premium payments.
For example, let’s say a 70 year old wants to start saving money for their final expenses. If they decide to put $300 a month into a savings account, the account value will be $300 after the first month. However, if that same person instead took the $300 to pay a life insurance premium, the death benefit value (let’s say $20,000*) would be immediately available to beneficiaries upon death, as long as the policy remained in force.
What final expenses do people have?
When assessing your own final expenses, it’s important to think about anything your loved ones would be responsible for paying when you pass away. Here are some things that may need to be paid for:
- Funeral: Average cost is $6,000 – $12,000
- Final medical bills: Average cost is $11,820 according to NBER Research.
- Final income tax return
- Estate Tax (Most Americans will not pay an estate tax)
Why choose Twin Cities Mutual for your Final Expense insurance?
The Final Expense life insurance market can be very overwhelming for someone that just wants a few questions answered and some pricing options. Many life insurance agents have shifted their practice into the telesales model, making it very difficult for the average person to avoid aggressive over-the-phone sales tactics. These agents typically sell several policies a day, not giving their clients enough time to fully understand what they are buying. This has caused the lapse rate of Final Expense insurance policies to be the worst in the industry.
We believe that our face to face, educational approach offers more value to our clients, as most people still look for this personalized service. By working with Twin Cities Mutual you will get a better sense of how much coverage you need at the most cost-effective pricing.
To learn more, please visit our Scheduling Page.