What is the basic function of a final expense fund in life insurance?

The basic function of a final expense fund in life insurance is specifically designed to cover last illness and burial expenses. This type of fund is typically used to ease the financial burden on the deceased's family by ensuring that costs related to funeral services, medical bills incurred near the time of death, and any other associated expenses are taken care of. It provides a way for individuals to set aside money or have a specific life insurance policy that directly addresses these immediate financial needs.

Final expense insurance is often more accessible to individuals as it generally entails lower coverage amounts and simpler underwriting processes compared to other life insurance policies. This focus on covering these specific types of expenses distinguishes it from options aimed at retirement income, funding education, or serving as investment savings, which address longer-term financial goals or planning rather than immediate end-of-life costs.