Given its flexibility, final expense insurance mitigates some of the worry preneed or prepaid plans may leave unresolved. Many of the concerns and limitations of those plans don’t apply to final expense. However, there are some things you should be aware of before enrolling in final expense insurance.
| Benefit | Burial/Preneed/Prepaid Insurance | Final Expense Insurance |
|---|---|---|
| Expenses Covered: | Burial/funeral costs only | A variety of final expenses |
| Beneficiary: | Funeral home | Your choice |
| Specific Arrangements: | Locked in at the time you choose | Remain flexible, although you give instructions |
| Cost: | Varies by provider and selection—solely covers funeral costs | A $10,000 policy costs about $2 per day. |
| Benefit Amount: | Once the plan is paid for, the benefit amount remains the same. | Tax-free savings are built up over time up to $35,000. |
| Balance May Be Borrowed Against: | No | Yes |
