September is Life Insurance Awareness month, and while there are a myriad of types of insurance, we’d like to focus on the two types of life insurance we offer: Preneed and Final Expense Insurance.

But first! A little history lesson…They say, “Insurance started on the seas.” The earliest kind of insurance being marine insurance. Chinese merchants, well over 5,000 years ago, were losing their cargo to the sea. So, they decided to take out loans on the shipments to protect themselves against loss or theft.

Nowadays, you can insure just about anything. My neighbor purchased a claim for their golden retriever. Many people also invest in “Wind Insurance” to protect their homes from hurricane damages! We could go on and on about all the obscure insurance, and while they are all intriguing and some quite funny, there is one type of insurance that takes priority for our family… Life Insurance! There are two different types of life insurance we would like to focus on today: Preneed and Final Expense.

Preneed Insurance

Preneed Insurance can easily be broken down by its very name: Insurance that is purchased before there is a need. This policy is bought from a specific funeral home tied to a Goods and Service guarantee. In the event of a death, this insurance policy has been previously funded, and arrangements have been made by the deceased for services.

The ideal person who benefits from Preneed Insurance are families who would like to partner with a local funeral home and lock in today’s prices for the funeral service they wish to have. You are able to specify everything from clothing, to casket, to the music selection.

Final Expense Insurance

Similar, but slightly different comes Final Expense Insurance. This policy is acquired directly from the life insurance company and payments are made over time which result in a payout to your beneficiaries. These benefits can be used to fund the funeral, cost of living, and other financial needs.

The ideal person who benefits from Final Expense Insurance are families who wish to set aside a specific budget for all end-of-life expenses. You don’t need to select any specific details for your funeral now, but instead designate the amount you would like to leave to cover your funeral and additional expenses.

Both Preneed and Final Expense are responsible investments that demonstrate you care for those who you will leave behind. They both save you money, and they both will bring you peace of mind.

Life is full of so many uncertainties, but we would encourage you to take that step and get in contact with an agent that can get you more details and guidance. Just as the ancient Chinese mariners must have felt more confidence in their day-to-day you can have that same feeling of contentment knowing everything is taken care of.

Happy Life Insurance Awareness Month!