Debunking X Myths About Final Expense Insurance For Veterans

Final expense insurance, often referred to as burial or funeral insurance, is a type of whole life insurance policy that aims to cover the costs associated with one's final expenses, including medical bills, funeral costs, and other end-of-life expenses. In light of the unique circumstances and benefits that veterans are privy to, it is essential to debunk certain pervasive myths that revolve around this topic.

To begin with, there's a prevalent misconception that veterans are fully covered for their final expenses by the government, making final expense insurance redundant. While it is uncontestable that the Department of Veterans Affairs (VA) does provide certain burial benefits for veterans, these benefits are neither comprehensive nor automatic. For instance, according to the National Cemetery Administration, the burial benefits currently provided by the VA include:

• burial in a national cemetery
• a government headstone or marker
• a burial flag
• a Presidential Memorial Certificate

All at no cost to the family. However, the VA does not cover transportation to the national cemetery or funeral home expenses, which can be substantial. These are costs that a final expense insurance policy for veterans can cover, filling the gaps left by the VA's benefits.

Another commonly held belief is that final expense insurance for veterans is prohibitively expensive. By utilizing actuarial science, which applies mathematical and statistical methods to assess risk in insurance, finance, and other industries, it can be demonstrated that, while premiums are indeed higher due to the increased age of the insured, it is still a viable and affordable option. The trade-off here lies in the peace of mind provided to the policyholder, who can rest assured knowing that their loved ones will not be burdened with end-of-life expenses.

A third myth posits that being a veteran with a pre-existing condition makes one ineligible for final expense insurance. This is a fallacy. The underwriting process for final expense insurance is considerably more lenient than that for traditional life insurance policies. Many companies offer what is known as "guaranteed issue" policies, which forego the typical health questionnaire and medical exam. While these policies may come with a slightly higher premium, they ensure that veterans, regardless of their health status, can obtain final expense insurance.

Yet another erroneous belief is that final expense insurance benefits are taxable. Drawing from tax law, life insurance policies, including final expense insurance, are generally not considered taxable income. Thus, beneficiaries typically do not have to pay taxes on the received benefits. However, there are certain exceptions to this rule, and it is always recommended to consult with a tax advisor for personalized advice.

Lastly, there is an erroneous assumption that purchasing final expense insurance is a lengthy and complicated process. While it's true that the insurance sector can be convoluted, many insurance providers are leveraging contemporary technological solutions, like insurtech, to streamline the process. Many final expense insurance policies can be purchased online, following a straightforward, step-by-step procedure.

In conclusion, while final expense insurance may not be the right choice for every veteran, it is undeniably an option worth considering. By debunking these myths, veterans can approach their final expense planning with a more informed perspective and make decisions that best accommodate their individual circumstances and needs.