Final expense insurance is a whole life policy that pays medical bills and funeral expenses when you die. It’s also known as burial or funeral insurance. It’s a popular choice among seniors because of its affordable price, smaller benefit amounts, and emphasis on covering funeral costs.
Traditional life insurance policies such as term insurance are primarily intended to replace any income lost when a loved one dies. These policies are most important to families during the earlier years when we’re working, paying a mortgage, making car payments, and raising our kids.
Once we’ve retired, paid off the mortgage, and the kids are out of the house, traditional life insurance policies aren’t needed as much. What we do need is a way to pay for any expenses we leave behind when we pass.
According to the National Funeral Directors Association, the median cost of a funeral can be over $10,000. With no way to pay for these expenses, surviving loved ones often experience a financial burden during a time of intense grief.
Many of us have experienced the death of a loved one and remember how stressful it was to juggle our grief, the funeral planning, and the financial obligations we had. The thought of our spouse or children going through the same experience is unbearable.
Burial insurance for seniors is a smart and compassionate insurance solution for seniors looking to protect their loved ones from rising funeral costs. It’s typically easy to qualify because it’s issued based on answers to health questions. In many cases, you don’t need to take a medical exam.
There are two types of final expense insurance. The type you choose or qualify for will affect the price.
1. Simplified Issue Life Insurance
This type of final expense insurance doesn’t require a medical exam but has health questions on the application. It’s cheaper than guaranteed acceptance because your health factors into the insurance company’s decision. If you’re turned down for simplified issue final expense life insurance or don’t qualify, you have another option available.
2. Guaranteed Acceptance Life Insurance
Guaranteed acceptance insurance is final expense life insurance with no medical questions or exams. You can’t be turned down, regardless of your health status. Since your health risk isn’t a factor, final expense life insurance rates are the most expensive. You’ll get cheaper rates If you’re looking for more affordable rates and can qualify for simplified issue final expense insurance by answering health questions.
How Does Final Expense Insurance Work?
Final expense life insurance works like any other life insurance contract. When you die, your beneficiary receives the death benefit. They can use the money for any reason, including paying for your end-of-life costs and final expenses.
If you have specific needs or wishes for your death benefit, communicate them to your beneficiary, understanding that they can use the money any way they choose. Consider these final expense insurance qualities to help you decide if it’s the right fit.
Very few requirements
It’s easy to apply for final expense insurance and to qualify for coverage. Final expense life insurance doesn’t require a medical exam. Those who apply for guaranteed issue life insurance don’t have to answer medical questions or take an exam. You just have to meet the age criteria (if applicable), choose your coverage amount and apply.
Very expensive
Compared to other types of life insurance, final expense insurance can be costly. Without a medical exam to decide the insured’s risk, the insurance company will use high-risk final expense life insurance rates instead.
Guaranteed death benefit
The death benefit amount is guaranteed to be paid upon death, as long as the policy premiums are paid. The beneficiary can use the death benefit for anything; it is up to them to decide how to use it.
Cash value
Since it’s a whole life policy, final expense insurance builds cash value over time. It grows tax-deferred, and you can access it while still alive. You can borrow against it or use the cash value to pay premiums instead of paying them out-of-pocket. The insurer will deduct any outstanding loan balance from the death benefit upon death.
Level premiums
Premiums are locked in from the day the policy is approved. No matter how old you get, you’ll never pay more for your coverage as long as the policy stays in force. The policy may be paid in full once you reach a certain age (usually 100) depending, on the policy and insurance company.
Fast decision
The application process is fast and easy, and coverage is typically approved within a few days, and you may even get approval the same day. Coverage starts after the company approves the policy and receives the first payment.
$35,000 Final Expense Benefits for those 50 yrs old and older.
Take This Short Quiz To See If You Qualify!