For all of these, the state declares that you have to
purchase at least a certain amount of insurance, but it is not always recommended that you only get the minimum amount of coverage.
Situations that would normally lead to a lease being classified as a finance lease include the following: the lease transfers ownership of the asset to the lessee by the end of the lease term; the lessee has the option to
purchase the asset
at a price which is expected to be sufficiently lower than fair value
at the date the option becomes exercisable and that,
at the inception of the lease, it is reasonably
certain that the option will be exercised; the lease term is for the major part of the economic life of the asset, even if title is not transferred;
at the inception of the lease, the present value of the minimum lease payments
amounts to
at least substantially all of the fair value of the leased asset, and; the lease assets are of a specialised nature such that only the lessee can use them without major modifications being made.
For example, if your beneficiary (or beneficiaries) will need a
certain amount to pay for final expenses or other specific debts, then it will be important to
purchase at least that
amount of coverage.