The question as to how long one is meant to have final expense coverage lies in how short and long-term coverage are defined. After defining, final expense insurance will be discussed in terms of what features would need to be altered in order for it to be the appropriate choice, and why it suits the other term.
Defining Short and Long-Term Coverage
Short-term coverage has a predetermined expiration date. It’s the coverage for right now, but not forever. Term life insurance policies fit this mold. One may join a policy knowing that it only lasts a finite period of time. While this may sound like a bad idea, it should be noted that the premiums are cheaper and that short-term coverage can be renewed and converted into long-term coverage.
Long-term coverage lasts for life. It doesn’t expire, and because of this, there is no need to renew it. These policies guarantee a death benefit as long as premium payments are met.
Why Final Expense Insurance Isn’t Short-Term
Final expense insurance, by definition, is a type of whole life insurance policy. Whole life insurance policies aren’t subject to losing the death benefit entirely. Final expense insurance guarantees the death benefit, provided one makes premium payments.
The only way in which final expense insurance could reduce the death benefit despite payments would be if the policyholder borrows against the death benefit.
Why Final Expense Insurance Is Long-Term
It’s long term because there’s no expiration. The policy is yours, and the death benefit is guaranteed to go toward your loved ones. You don’t have to worry about losing it, and you don’t have to worry about outliving your policy. Long-term insurance reduces this stress.
Get a Free Final Expense Quote
Final expense insurance is easy to join. Call us today at 1-877-674-0236 if you’d like to receive a free quote.