Page 10 - Lasting Mark : Life Book 2025

INTRODUCTION TO
LIFE INSURANCE

Life insurance is a financial product designed to provide financial protection for your loved ones in the event
of your death. It can be a crucial part of your financial planning, ensuring that your dependents are financially
secure if you are no longer there to support them. Life insurance is a contract between the policyholder and
an insurance company. In exchange for regular premium payments, the insurance company promises to pay a
sum of money to your beneficiaries upon your
death. The amount paid out is known as the
death benefit.

Traditional Life Insurance may be suitable
for those seeking higher coverage limits and
willing to undergo a detailed underwriting
process. On the other hand, Simplified Issue
Life Insurance provides a faster and more
accessible option, particularly for individuals
with health considerations.

Final Expense

Final expense life insurance is a type of insurance policy designed to cover the costs associated with a
person’s funeral, burial, and other end-of-life expenses. It is also sometimes referred to as burial insurance
or funeral insurance. The purpose of final expense insurance is to ease the financial burden on family
members or beneficiaries who would otherwise be responsible for paying these costs out of pocket.

Key features of final expense life insurance:
1. Coverage Amount: Generally, these policies provide coverage in the range of $5,000 to $25,000,
although some policies may offer higher amounts.
2. Simplified Underwriting: The underwriting process is often simplified compared to traditional life
insurance policies, making it easier for older individuals or those with health issues to qualify.
3. Fixed Premiums: Premiums are usually fixed for the duration of the policy, meaning they do not increase
over time.
4. No Medical Exam (or minimal): Many final expense policies do not require a medical exam, or if they do,
the requirements are less stringent than for other types of life insurance.
5. Quick Payout: These policies typically pay out quickly after death, providing funds to cover immediate
expenses associated with the funeral and burial.

Final expense insurance can provide peace of mind to individuals who want to ensure that their loved ones
are not burdened with significant financial costs after their passing. It is especially popular among seniors
who may not have other life insurance coverage or who want to specifically earmark funds for their final
arrangements.

10 | DOING LIFE WITH LASTING MARK