Dealing with death is never easy, but final expense insurance can help relieve some of the stresses of bereavement. State Farm is a trusted nationwide provider of multiple types of insurance. Its final expense insurance policy allows grieving loved ones to focus on processing their loss instead of fretting about how to pay for the aftermath.

Upon the death of the policy holder, a sum of $10,000 is granted to the beneficiary. This money may be used for burial expenses and to cover the funeral, although the policy clearly states that it may be used for other purposes as well. This final expense insurance policy carries a guarantee that prevents premiums from being increased during the life of the policyholder. You have the option to pay premiums either by the month or on an annual basis. Another benefit of this policy is that it acquires tax-free cash value as the premiums are paid, and the dividends can be used at any time while the policyholder is still living. Policyholders may use the dividends to reduce future premiums, or they may be payable in cash. State Farm lists other options for their use on its website.

There are some facets to the policy that a potential buyer should be aware of. First of all, the cash dividends are not a guarantee. Any gains that the policy is capable of earning may be subject to taxation. Additional taxes may also be a consideration, depending on the age at which the buyer applies for coverage, at which point the policy may be considered a modified endowment contract (MEC). The policy is a whole life policy, meaning that it covers the policyholder for life. There is a small matter of fine print, however, as State Farm deems “whole life” as only going up to age 100. Beyond that, the policy expires. Only people between the ages of 50 and 80 are eligible to sign up for this final expense insurance policy.

Perhaps the most comforting benefit provided by State Farm’s final expense policy is the guaranteed $10,000 death benefit, and the flexibility for your beneficiary to use it for burial and funeral costs or whatever other arrangements are needed. This ensures that end-of-life costs won’t be shouldered by bereaved loved ones. If you are eligible for the policy and it suits your needs, that kind of peace of mind may well be priceless.

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