Final Expenses indicate your last and final expenses after your death that your family bears for you. It can be stressful for your family to look up for money to fund for your funeral at the time when they are emotionally broken. Final expenses insurance can be a way to alleviate them at the time of grief by sharing their financial burden to meet these unforeseen costs.
Final Expenses Insurance is just another option like funeral Insurance to help your family meet up with your end of life expenses and other payments through the benefit amount received.
Applying for final expenses insurance is very simple:-
- There are no blood tests, medicals or complicated forms to be filled.
- You can apply for it over the phone.
- The policy is easily available and has guaranteed acceptance to all the Australian residents under the age of 79.
- The policy covers you if you have an accidental death in the first year of the policy and later for death due to any reason.
- It has single and a family cover option.
- You can cover all your children below the age of 21.
- You can choose the cover amount that suits you and nominate anyone you want to receive the benefit amount after your death.
- You can choose to pay the premiums either monthly or fortnightly.
- You have a 30 day cooling off facility that is, if you are not satisfied with your policy, you are guaranteed money back in the first 30 days.
- You can opt for a cover of maximum $15000, of which you would get a tripled amount benefit of $45000, in case you have an accidental death.
- Your premiums would stop at the age of 90 but you will avail the benefits of the policy after your death, without any other costs to be incurred.
- You also can make choices from the age based or fixed rate premium policies available.
A typical funeral would cost somewhere between $4000 to $7000, and the rest of the cover amount can be used to pay your loans, outstanding bills or for the travel costs to attend your funeral. The lump sum amount will help to pay for the cremation, burial or funeral services.
Apart from all the benefits of the policy, there are a certain things that you should be aware of while applying for the policy.
- The benefit amount of Final Expenses Insurance would annually increase by 5% till you turn 80, and so will the amount of premium rise at the same rate. Although you can opt out of this increase.
- If you chose age based premium option, and the age of oldest life insured falls between 44-80 years in the policy, your premiums would increase on every policy anniversary. This will not happen in case the age of the oldest life insured is less than 44 years or above 80 years.
- If you chose fixed premium rate option, premium payment option selected can’t be changed without restarting or cancelling your policy, after the commencement date.
- If you hold your policy for a very long period of time, you might end up paying more in premiums than the total benefit amount.
- If for any reason you discontinue your policy or your cover ends, you would not get the benefit amount and there will be no refunds of the premiums paid after the cooling off period.
Jen Godin is a freelance blogger and currently writes for Let’s Insure which provides funeral cover in Australia. Visit http://www.letsinsure.com.au/OurInsurance/Funeral for more information on family funeral policies.