The Difference Between Term Life Insurance And Final Expense Policy

​Most people comprehend that getting life insurance is about preparing for your demise. However, there are several types and levels of insurance, and it is not simply about the financial support your beneficiaries will receive in the event of your passing. 

This article will cover the difference between life insurance and final expense to help you choose the right insurance for your needs.

What Are Term Life Insurance and Final Expense Policy?

Term Life Insurance
A term life insurance policy is a legal agreement between you and an insurance provider for a specific time, usually between 10 and 30 years. In exchange for your monthly premium payment, the insurance will provide a set amount as a death benefit if you pass away during the term. 

The beneficiaries listed in your insurance policy will receive the death benefit. When the term expires, your insurance protection will also end.

Final Expense Policy
Final expense insurance is a type of whole life insurance designated to pay for any costs associated with your death, such as funeral expenses. Unlike other insurance (Term, Whole, Universal) that offers more coverage, the final expense insurance only covers burial costs. 

Term Life Insurance v.s Final Expense Policy
If you opt for affordable insurance, term life insurance is a good choice. It has cash value, a higher death benefit, and is better if you're planning to leave an inheritance or to replace your income. On the other hand, the final expense policy costs almost the same as the term life. However, it doesn't have a cash value and only offers a small death benefit. 

Should You Choose Term Life or Final Expense Insurance? 
If you're planning to use the insurance as a retirement fund, college fund, and estate planning, term life insurance is suited for you since it has a cash value and a high death benefit at an affordable price. A final expense policy is a great choice if you want to help your beneficiaries pay for your burial and funeral costs.

In Between
When it comes to life insurance, the differences can be stressful to comprehend. Either term life insurance or a final expense policy helps secure your financial position at the time of your demise. But choosing the appropriate insurance for your needs between the two helps you save money and opt for a good result in the future.

At Cornerstone Insurance Agency, we aim to provide comprehensive insurance policies that make your life easier. We want to help you get insurance that fits your needs. You can get more information about our products and services by calling our agency at (888) 661-8831. Get your free quote today by CLICKING HERE. Topics and coverage discussed in this article are not guaranteed, consult with your agents to determine what your policy does and does not cover. We are more than happy to help!