What is Final Expense Life Insurance?
Final expense insurance is a type of whole life insurance designed to cover medical bills and funeral expenses when you pass. A final expense policy is also known as burial or funeral insurance and is popular with older people.
Most final expense plans have these features:
- Whole life insurance: no expiration if premiums are paid
- Cash value: insured may be able to take out a policy loan
- Fixed premiums as long as they’re paid
- Simplified issue: usually no medical exam is required, just health questions on the application
- Easy application process
- Fast approvals: coverage can often be issued in days
- Affordable rates
Why Get a Final Expense Plan?
If you’re over 40 and need money to cover your final expenses and funeral costs, final expense life insurance is a perfect fit. Because the death benefit of the policy (typically $5,000-$20,000) tends to be less than the benefit of traditional insurance, the premiums tend to be more affordable for those on a fixed budget. Aside from that, a few more benefits of a policy include:
Focuses on after-life preparedness. Most life insurance policies aren’t designed to specifically address the many costs family members pay when preparing for a funeral. Caskets alone can cost up to $10,000 depending on the style and material. This doesn’t include other typical funeral costs like transportation, preparation of the body, grave liners, flowers, or the headstone. A final expense policy can help with these costs and protect your family from experiencing a financial burden.
Final expense insurance is a type of whole life policy. For most traditional whole life policies, the death benefit and the insurance premium remain the same for the life of the policy. Most whole life policies last for the life of the policyholder and some accumulate cash value. Whole life insurance is often called “permanent life” because the term of the policy isn’t limited to a specific time frame like term insurance.
It’s more affordable than many other insurance policies. Because it’s typically used to cover funeral costs, the coverage amount is usually much smaller than traditional policies. On average, people insure themselves for $10,000 – $20,000, making the premiums for a final expense policy more affordable than larger policies.
Easy qualification. Because the coverage amount is lower than other types of life insurance, some final expense policies don’t require a medical exam to qualify. Most policies can be issued based on answers to health questions on the life insurance application.
Get Free Quotes & a Free Consultation
Call or send a request, and we'll connect you to a trusted licensed insurance agent for a free call and free consultation. During your call, provide your agent with some information so they can provide quotes from the final expense carriers they work with. There’s no obligation and simply purchase when you’re ready!
