life-insurance

Final Expense

Final Expense Life Insurance

Final Expense Life insurance helps take care of your final expenses (i.e. funeral, cremation, casket, cemetery etc.), as well as outstanding medical bills or debts. Any excess funds are paid to the policy’s beneficiary.

  • Funds are paid first to the funeral home, excess funds go to your beneficiaries
  • Funds cannot be attached by creditors such as nursing homes or lawyers
  • Tax Free benefits upon death, unlike CD’s, annuities or money markets
  • Death Benefits avoid probate costs and delays
  • Assurance you will never need to have a welfare funeral

Why choose Final Expense Life Insurance rather than a pre-paid funeral through a funeral home?

  • If the funeral home goes out of business you might not be able to recover your money
  • The funeral home might be sold or merge with another that you would not want handling your final arrangements, and they might not grant you a refund
  • What if you move, making your pre-paid funeral in a certain locality impractical?
  • A Final Expense Life Insurance policy or Trust allows your arrangements to be handled by anyone you wish, such as your personal representative, a relative, friend, or funeral home — anywhere — at the time of your passing

Funeral Expense Trust/ Irrevocable Burial Trust

A combination of life insurance and a funeral trust creates a secure plan to cover your final expenses. A life insurance policy purchased to cover the anticipated costs of your funeral is assigned to an Irrevocable Burial/Funeral Expense Trust.

This assignment offers three main advantages:
1). At the time of death, policy proceeds do not have to go through probate and are available immediately to pay your final expenses

2). The policy may not be considered an asset in determining Medicaid and SSI eligibility

3). Funds are protected from creditors

[1] Gibbs,L., Mangla, I., The High Cost of Saying Goodbye. (2012, November 9) CNN Money.com, http://money.cnn.com/2012/11/01/pf/funeral-costs.moneymag/4.html?iid=EL, Accessed: April, 24, 2013.
[2] Kavilanz, Parija. Funeral Cost-Cutting Boosts Cremations. (2009, April 9) CNN Money.com. Accessed: April 8, 2013.
[3] According to Social Security Rules and Regulations 404.390