It is often difficult to talk to loved ones about mortality. However, it is always best when everyone is aware of your final wishes and your financial preparations. Since your loved ones are tasked with making sure your final plans are carried out, they need to understand your desires. 

They also need to know which financial insurance policies you have and how to file claims for those policies when the time comes. The two most common policy types relating to final expenses are term life insurance and final expense insurance.

There is one key difference between final expense insurance and term life insurance. That is how the funds are used. Final expense insurance typically only covers the expenses related to funeral and burial procedures. Although, some policies can also cover medical expenses incurred prior to death. Final expense insurance is not used by beneficiaries for their own purposes.

In contrast, a term life insurance policy typically provides a larger amount of money. That money is given to the beneficiaries you name. You can choose one beneficiary or multiple beneficiaries. When selecting beneficiaries, you can name anyone people you want, even if they are not family members. Beneficiaries typically use funds in whatever ways they desire. The funds can provide ongoing, expected financial support for loved ones you support financially in life or help you give financial boosts to loved ones as a surprise.

Many applicants apply for life insurance policies when they are relatively young. Policies are often harder for older individuals to obtain. Health concerns make many older applicants poor risks, according to most life insurance companies. In many cases, life insurance policies are provided by employers. Applicants can purchase independent policies at any ages. However, older applicants may face more difficult application processes and higher premiums.

If you are already a senior citizen, you may have difficulty finding an affordable term life insurance policy. Final expense insurance is potentially the best option for you. You may also prefer final expense insurance if you do not have a large family to support in the event of your death. 

As a senior citizen, you may not have the same financial obligations you did as a younger adult. For example, your children may have grown up. Your spouse may also have predeceased you. In such a case, you might feel like you need no insurance at all. However, it is still important to cover the costs of your final expenses. If you do not have final expense insurance, your adult family members may face financial hardships relating to your funeral expenses.

You may wonder how to qualify to receive final expense insurance coverage. There are some requirements you must meet. Read the following slide to discover what those requirements are.