Whole life insurance and final expense insurance are two different types of life insurance products. Whole life insurance provides permanent life insurance protection for the life of the insured, with a fixed premium that guarantees a death benefit payment when the insured passes away.
Final expense insurance is a type of life insurance that is specifically designed to help with funeral and end-of-life costs. Final expense policies pay a death benefit once the insured passes away, and the premiums tend to be lower than most other types of life insurance policies.
The primary difference between whole life and final expense insurance is that whole life insurance provides permanent coverage and protects against the unpredictable, while final expense insurance only provides a limited death benefit for specific needs like funeral costs and is generally less expensive than other permanent life insurance products.
Whole life insurance is designed to provide long-term protection for the policyholder and their family. The premiums are fixed throughout the life of the policy and the death benefit is paid out when the policyholder passes away. Whole life insurance is typically more expensive than other types of life insurance, such as term life insurance or final expense insurance.
Final expense insurance is designed for individuals who need to cover the cost of a burial or funeral service. The death benefit is paid out to the designated beneficiary upon the insured’s death and the premiums are typically more affordable than other forms of life insurance.
In general, whole life insurance offers the most protection but is more expensive than cheaper alternatives such as final expense. It is important to consider how much coverage and protection you need, as well as your budget when deciding which type of life insurance is right for you.