4 Compelling Reasons Why Veterans Need Final Expense Insurance

The solemn undertaking to serve one's country in the line of duty—a commitment that many veterans have made and upheld with honor—often comes with a specific array of challenges and benefits upon return to civilian life. As veterans navigate the transition, a crucial consideration that often slips through the net is the significant necessity of securing final expense insurance. The concept of final expense insurance, often colloquially referred to as burial insurance or funeral insurance, is a life insurance policy designed to cover end-of-life expenses, including funeral costs, medical bills, and other debts. It is in this context that we delve into four compelling reasons why securing final expense insurance is a critical component of financial planning for veterans.

• Alleviate the financial burden on loved ones:

The economic theory of consumption smoothing suggests that individuals and households attempt to maintain stable levels of consumption over time, anticipating future expenses and adjusting savings and spending accordingly. However, end-of-life costs—often unexpected and substantial—can cause significant disruptions to household finances. Final expense insurance ensures these costs are covered, sparing families the financial strain while they are grieving. For veterans, whose families may already have endured periods of uncertainty and separation, this alleviation of financial stress can be particularly meaningful.

• Coverage inclusivity and accessibility:

Many veterans may suffer from health conditions related to their service, potentially making it difficult to acquire traditional life insurance. However, final expense insurance typically does not require a comprehensive medical examination, making it more accessible. The Pareto principle, or 80/20 rule, posits that approximately 80% of results come from 20% of actions. In the context of insurance, a relatively small premium—driven by efficient underwriting processes that exclude comprehensive health checks—can yield significant benefits, making final expense insurance a rational choice for veterans.

• Accommodation of rising funeral costs:

Akin to the economic concept of inflation, where the average price level of goods and services in an economy increases over time, funeral costs have also been on a steady upward trajectory. This trend can be attributed to various factors, such as regulatory changes, shifts in societal norms, and increased demand for personalized services. Final expense insurance offers a financial buffer against these rising costs, ensuring that veterans' final rites can be carried out as per their wishes, without imposing a financial burden on their families.

• Facilitating smoother estate settlement:

The probate process—the legal procedure of settling the estate of a deceased person—can be a complex, lengthy, and costly affair. According to the Coase theorem, a fundamental concept in law and economics, transaction costs can significantly impede the efficient allocation of resources. By covering end-of-life expenses, final expense insurance can minimize these transaction costs, facilitating a smoother, more efficient probate process.

In conclusion, while it may not be a common topic of conversation, final expense insurance serves a crucial role in comprehensive financial planning, particularly for veterans. It offers a dignified and practical solution to manage end-of-life expenses, safeguarding loved ones from potential financial burdens and ensuring they can focus on healing during a challenging time.

As veterans have devoted a significant part of their lives in service to the nation, it is only fitting that they receive the peace of mind that comes with knowing they are covered in all aspects of life—and death. Securing final expense insurance is thus an investment not just in one's peace of mind, but also in the financial and emotional well-being of loved ones left behind.