Final expense insurance will pay for your burial or cremation costs if you die unexpectedly. This is an easy type of insurance to get, but be sure to look into your company's policy for requirements and limitations.
For instance, your policy might not pay for expenses such as medical bills, mortgage payments, or rent. Final expense insurance is usually paid in a lump sum. This means your beneficiaries
can withdraw the money in one big chunk when you die. It may take them longer to get the money than if they had paid for the expenses themselves.
This is not necessarily a bad Final Expense Life Insurance thing if you're using the money to pay for something else. It depends on how you need to spend it. You can use your life insurance to pay for medical bills or pay down a home mortgage. For instance, you can use the death benefit to pay off a student loan. This will leave you with the money that you were counting on to pay off the debt, plus some extra cash.
You should also make sure that your beneficiaries will have enough money to cover their own funeral or cremation costs if they die unexpectedly. If you die unexpectedly, your family may need to borrow money to cover funeral or cremation expenses. It is best to think about this before buying your policy.