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Your Insurance Matters: Why buy final expense insurance?

Your Insurance Matters
Why buy final expense insurance?
By Shirley R. Lamdan, CLU

Why buy final expense insurance? People often think of final expense coverage as paying just for funeral and cemetery or cremation costs. But today, final expense insurance is life insurance to cover many other end-of-life expenses as well. There can often be many other bills that also need to be paid such as medical, loans, credit card balances, etc.
Retirees, on the other hand, have many more demands on their savings than in the past. And, as a result, there may simply not be enough cash to cover all their final expenses.
Why the shortage of funds? The ever-increasing cost of living hits seniors very hard. Fewer retirees receive regular pension checks. People are living longer.
Just take a quick look at any newspaper's obituary section. People are living into their late 80's and 90's. It's not uncommon to see people living past 100! Living longer uses up more savings. A recent study of people living past 100 revealed that most of them have run out of money!
Higher out-of-pocket health care costs and long term care costs drain savings. Fewer seniors have planned ahead with permanent life insurance. Permanent life coverage offers a dependable source of cash for the surviving family to pay all these final costs. But it has to be purchased ahead of time and needs to be in force when it's needed.
What to do? Plan ahead and find an independent agent who will shop carefully for your final expense plan. Even if you have health issues.
You don't have to buy one of those plans that comes in the mail! Most of them are outrageously expensive - yes, even those well-known name brands are often over-priced.
Just the other day, a life insurance offer for final expense insurance arrived in our mail at home. I read the offer carefully and I had to read it over a few times including all the footnotes and the fine print.
The rates were very high -- more than FOUR times higher than an average applicant might pay with an independent insurance professional. Not only that, the rates would increase over time and were not even guaranteed.
But that's not the worst of it: the life insurance protection would end at age 80! Unless I changed to another plan at even higher premiums!
Please do not assume that if you have health problems that you won't be able to get coverage. Not true!! Let your insurance representative shop for you and find a company that will give you the coverage you need.
Consider the time your independent insurance agent takes to shop for your final expense insurance as money in your pocket. It's as important to shop for this coverage as for every important purchase.
Just make sure that your agent shows you a permanent plan that is guaranteed to stay in force at guaranteed premiums PAST age 100. It's those guarantees that you're looking for.

Since 1982, Shirley R. Lamdan, CLU, of Hagerstown, MD has provided independent retirement and insurance services to individuals, corporations, and non-profits. Contact her at 301 791 9427 or 800 628 3449. Her email is The website is

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