What is Funeral / Final Expense Life Insurance?
Funeral / Final Expense Life Insurance is not actually a type of life insurance. It is simply just a name given to describe permanent life insurance with a death benefit coverage amount (the amount that pays out at death) typically between $10,000 and $50,000.
Many Canadians purchase a permanent life insurance product (either a whole life insurance policy or a universal life insurance policy) to use to pay for their funeral and additional costs associated with death such as taxes or unforeseen bills and expenses.
Depending on the age of when the life insurance policy is purchased, it can be quite advantageous compared to leaving your money in a low interest savings account.
Why do Canadians Purchase Funeral / Final Expense Life Insurance?
Canadians purchase permanent life insurance to provide coverage to pay for their funeral and final expenses so that the burden is not left upon their family. Not too mention, you could potentially save yourself and your family money by purchasing a permanent life insurance policy instead of using money from your savings account (or even worse, your dependents savings).
Also, some Canadians may not have sufficient amount of savings to cover their funeral costs and don’t want to leave the burden upon their family. This is where the benefit of purchasing a permanent life insurance policy shows its worth.
How Much Does Funeral / Final Expense Life Insurance Cost?
There are many different factors which will determine the premium of a permanent life insurance policy. The premium is the amount that you must pay to keep the life insurance policy in force. There are also different types of policies which can be purchased which will also affect the premium. The more benefits you have, the higher the cost of the policy will be.
We will go over in detail the different policy types and factors which play a role in determining the cost of the life insurance policy but we highly recommend that you contact us to discuss your needs to ensure that the policy that you purchase is the right one for you and your family.