End of life insurance refers to a set of benefits that are designed to help manage some of the many issues that arise after a loved one dies. End of life benefits are usually added on to group life insurance policies free of charge.
Types
End of life, or preneed, insurance benefits include will preparation, funeral planning and "best in class." Best in class refers to Web tools and online advisers that are meant to offer assistance to employees with any questions they might have about end of life issues.
Significance
End of life insurance benefits evolved as a way to add value to group life insurance programs in non monetary ways. The group life insurance industry is very competitive.
Function
Will planning and funeral preparation allow employees to organize their own end of life situations without hiring lawyers and consultants. Most group insurance providers use standardized online forms for these end of life benefits, so that customers can simply log in and create their own wills and funeral designs.
Benefits
According to the Hartford Insurance Group, with end of life insurance, families save between $1,250 and $5,500 on funeral planning and as much as $700 in will creation costs.
Potential
According to the Hartford Insurance Group, in an online survey of more than 1,000 participants titled "The Hartford’s Employee Benefits Landscape Study," done in April 2009, four out of five employees said they would find it helpful to have assistance in will preparation, funeral planning and other end of life services provided by their employers.
References
- The Guardian Life Insurance Company of America. "Why You're Not Too Young for Life Insurance." Accessed May 14, 2020.
- Nationwide. "Mortgage Protection Insurance: Use Term Life Insurance to Pay Off a Mortgage." Accessed Sept. 17, 2020.
- Federal Trade Commission. "Debts and Deceased Relatives." Accessed Sept. 17, 2020.
- Farmers Insurance. "Life Insurance for Small Business." Accessed Sept. 17, 2020.
- Mass Mutual. "Buying Life Insurance for Your Parents." Accessed Sept. 17, 2020.
- Mutual of Omaha. "Our Solutions for Children's Whole Life Insurance." Accessed Sept. 17, 2020.
- Prudential. "How Can Life Insurance Help Manage Taxes in Retirement?" Accessed Sept. 17, 2020.
- Allstate. "Life Insurance and Retirement." Accessed Sept. 17, 2020.
Writer Bio
Based in San Francisco, Ocean Malandra is a travel writer, author and documentary filmmaker. He runs a major San Francisco travel website, is widely published in both online and print publications and has contributed to several travel guidebooks to South America.