Final Expense Life Insurance vs. Preneed/Prepaid Insurance

Final expense insurance, also known as burial insurance, is meant to cover the cost of funeral and burial services, such as a prepaid plan or preened plan. However, unlike preneed or prepaid funeral packages, final expense insurance can also help cover a wide variety of debts, fees and remaining expenses. Another perk with this type of life insurance is that it allows you to choose your beneficiary, whereas the prepaid and preneed plans do not. A preneed plan is usually payable to the funeral home. However, a final expense benefit goes straight to the beneficiary of your choosing. Final Expense Insurance coverage depends on your individual needs. It can last for the duration of a term (aka Term Policy), or it can be purchased as a Whole Life Policy and last your remaining lifetime, with the policy ending at age 100.

Below is a clear comparison between Burial/Preneed/Prepaid Insurance & Final Expense Life Insurance.
For further questions, call our office at 954-908-3473.

COMPARISON	Burial/Preneed/Prepaid Insurance	Final Expense Insurance
Expenses Covered:	Burial/Funeral Cost ONLY	A variety of Final Expenses
Beneficiary:	Funeral Home	Your choice
Specific Arrangements:	Locked in at the time you choose	Remain flexible, although you give instructions
Cost	Varies by provider and selection—solely covers funeral costs	Starting as low as $0.05 per day
Benefit Amount:	Once the plan is paid for, the benefit amount remains the same.	Tax-free savings are built up over time, up to $30,000.
Balance May Be Borrowed Against:	No	Yes