Final expense life insurance is meant to cover funeral and burial costs for a person who dies. This type of life insurance is not meant to leave any extra money for the people the deceased leaves behind, it is meant to not leave them with the burden of expenses associated with death. Here is everything you need to know about final expense life insurance, who should buy it, and how to get the best prices.
Table of Contents:
- What Final Expense Life Insurance Is
- How Big is a Final Expense Life Insurance Policy?
- How Much Does Final Expense Life Insurance Cost?
- How to Get a Final Expense Life Insurance Quote
- Three Important Things To Keep In Mind
- Why You Should Have Final Expense Insurance
- Ways That Insurance Can Provide Support for Final Expenses
- Understanding the Basics of Final Expense Insurance
- Final Expense Policies with No Medical Exam
- Who Qualifies for Final Expense Life?
- Benefits of Whole Life Burial Insurance
- Who Should Buy Final Expense Insurance
- Top Ten Reasons to Buy Final Expense Insurance
- How Old Should You Be?
- How to Find the Best Final Expense Insurance Rates
- 10 Best Companies for Final Expense Insurance
- Speed of Policy Issuance
- How Long Will You Need to Make Payments?
What Final Expense Life Insurance Is
Final expense insurance is a whole life insurance policy that is usually purchased by senior citizens. It is meant to provide insurance enough to pay for the funeral, burial, and other expenses incurred from dying and wrapping up the estate. The smaller face amount relative to other whole life policies makes it affordable, and the limited underwriting process makes it accessible to older people with normal health issues. Final expense life insurance is sometimes also referred to as “burial insurance”.
While most people hate talking about end-of-life issues, it is necessary to plan for them. Getting a good final expense life insurance package can zap any anxiety away that you may feel from the thought of leaving your loved ones with bills after death. This anxiety is not unfounded, because expenses associated with the death of a loved one, like caskets, hearse, headstone, embalming, etc. can have a major financial impact on those you love. Final expense life insurance can protect your loved ones from having to pay this cost out of pocket. Your family might be overwhelmed with all the thought, time, and trouble that go into coming up with the money to cover your funeral and related costs. Don’t do that to them. Give them the resources they need to take care of your end-of-life expenses without worry.
If you’re worried about how you’re going to pay for final expense insurance, just think about how much your family is going to worry when they’re looking at a total cost of $15,000 or more to handle all your end-of-life expenses. That just isn’t right for them to have to worry about right after you died. It’s not fair to them.
How to Buy Final Expense Life Insurance
Enter your zip code above and fill in the quote form. We can help you choose a great final expense policy today that will get you the most coverage at a great price.
How Big is a Final Expense Life Insurance Policy?
Final expense life insurance policies range from $10,000 to $100,000 in 2021. In the past, they were smaller death benefits, but a rise in the cost of funerals and wrapping up bills and the estate has forced companies to increase the face amount of new policies in order to keep up with inflating costs. The average final expense policy sold is about $25,000 in face amount.
How Much Does Final Expense Life Insurance Cost?
The price depends upon whether you choose a guaranteed issue product, where there are no underwriting requirements or a simplified issue product that has limited underwriting. Guaranteed issue policies are issued to everyone except those with a terminal illness. Because there is no underwriting, only people who are in the worst health and unable to obtain life insurance otherwise purchase those policies. This makes it more expensive than simplified issue life insurance and per dollar of the death benefit, also the most expensive kind of life insurance on the market. Even though it is the most expensive type of coverage it still is a good option for some people. A policy with a $15,000 death benefit will cost about $140 per month.
Simplified issue life insurance has no medical exam but does still have a bit more robust underwriting process than a guaranteed issue policy. The application will ask a variety of health questions and the life insurance underwriter will pull health records of the insured person. While many people with health problems will still be issued coverage, people with health concerns that put them at the highest risk may not get coverage. A simplified issue policy with a $15,000 death benefit may cost about $70 per month.
How to Get a Final Expense Life Insurance Quote
It is easy to obtain a quote for final expense life insurance. You should always try to obtain a simplified issue product first since it will save a lot of money in premium dollars. You can use our quoting widget to look at prices or work with an agent directly. If you are unsure of how much life insurance you need you should definitely consult with an advisor for help. We can provide quotes online or by phone since face to face meetings are not advisable. When you look at quotes make sure that you:
- Enter your information accurately and truthfully.
- Compare different death benefits. You may be able to afford more coverage than you think.
- Consider the cash value accumulation. Keep in mind that this is whole life insurance and the policy can be surrendered before death for the cash value. Make sure that you understand how the value grows over time and the way that the compound growth works. Cash value does not grow in a linear way.
- Whole life insurance products are more than a “quote”. Understand the entire illustration before you buy it.
If you can not pass the underwriting for a simplified issue product, you can look toward guaranteed issue policies. Prices may vary widely between companies so make sure that you compare the price from at least 3 companies.
Three Important Things to Keep in Mind
Everyone will die someday. Everyone knows someone who has died, whether it was sudden or expected. And, we all need to cover the cost of funerals and other death-related items.
A lot of people die sooner than expected. Everyone knows a story about someone who died before their time or died in an unpredictable and strange way.
We all need to plan for our funeral. At some point in our life, whether directly or indirectly, we will have to confront the difficult financial and emotional decisions of having a funeral planned.
You Have Three Options To Take Care of Final Expenses
- Do absolutely nothing. Just let time pass, and let it take care of itself. That is a terrible idea. Someone is going to have to pay for it. Your loved ones are going to have to foot the bill if you don’t have a good final expense or life insurance policy in place ahead of time.
- Get some form of life insurance. Final expense insurance is an excellent option. It will take care of all your immediate end-of-life expenses.
- Set up a pre-arranged burial plan with a funeral home.
Option one isn’t really an option. That’s not a good thing to do to the people you leave behind. Is that really what you want them worrying about when they should be trying to come together and heal?
Option two is the best choice by far. Your family will have a lot of options and plenty of money to handle your funeral and burial expenses. They will have the flexibility and options available to them to handle your end-of-life experience in the way they see fit.
Option three is not a great option. It is probably going to be cheaper to just get final expense insurance if you’re already very old. You can go down to a funeral home and purchase your whole funeral and burial in advance. This can be very expensive. A funeral can easily cost someone over $10,000, and depending upon the reception, grave-site, casket, and the cost to facilitate everything expenses can go much higher.
Option two is ultimately the best decision. You can still have the burial and funeral done exactly the way you want it at the funeral home of your choosing. The cost will be the same, but with final expense insurance, you will just make tinier payments while you are alive. This could save you thousands of dollars in the long run.
The only choice that makes sense is option two.
Why You Should Have Final Expense Insurance
When most people think about life insurance they think of having a policy that will replace their income after they pass away in order to help their surviving loved ones. However, life insurance policies are not always about replacing income.
Many people do not realize how much funerals and burials actually cost. These final expenses can be quite large, which is why it is important to understand different life insurance options such as final expense life insurance policies. When it comes down to it, the real point of life insurance, in general, is to make sure that your loved ones are taken care of after you are gone so that they do not have to drastically change their lifestyle. If your family is faced with paying unexpected bills after you pass away, it could cause them to have to make difficult financial decisions that they are likely not ready for.
Some people have a clear idea of how they want their funeral or burial to be, while other individuals do not care one way or another. Whether you have the perfect funeral planned or simply do not care what happens to your body after you die, it is still important to note that any type of funeral that is planned for you will not be cheap. According to the Federal Trade Commission, the cost of the average funeral is well over $10,000.
The cost of a funeral is not something that you want to leave for your family to come up with. Most people cannot afford to spend that kind of money all at once. If you do not want this burden to fall on your family and you do not have the cash ready to pay for your cremation or burial and you do not want your estate to be demolished by the costs incurred by your death, final expense life insurance policies are there for you.
A final expense life insurance policy is also often called burial insurance. This type of insurance policy is designed to pay any costs that are associated with your death. The amount that the insurance policy pays out depends on how much you pay for the premiums during the life of the plan.
A beneficiary is named for the policy and this person will be able to use the payout from the policy to pay for the funeral costs, probate, and any outstanding debts that you may have. If you die and do not have insurance or any savings, someone else will have to pay out of their own pocket for your funeral and other expenses.
Losing someone you love can be a terribly difficult experience. We all know that. Not having the money to take care of final expenses can make it a whole lot worse, though. A life insurance policy just isn’t enough. Final expense insurance takes care of that big financial burden associated with death.
Picking up the pieces while dealing with emotional stress can be too much for some people. There are so many expenses associated with death, and most families have trouble coming up with the money quickly.
Final expense insurance can save families the additional trauma of having to withdraw from their checking or savings account or even selling precious assets to come up with the necessary money needed to bury and take care of a loved one who has passed on.
Final expense insurance is a must-purchase item if you care about the mental health and welfare of those you leave behind. Do you really want your spouse or children worrying about how they’re going to cover the cost of your funeral and burial?
Final expense insurance plans help you put all your affairs in order by providing you with valuable benefits including:
- Final Expense Completely Taken Care Of – A policy that can pay $25,000 or more in cash, tax-free, to help provide for your final, as well as any other, expenses.
Protect Your Family – No more worrying on the part of your family about expenses associated with your death, like caskets, cremation, embalming, funerary services, etc. Final expense insurance can take a big load off your loved ones’ backs by protecting them from having to pay these expenses out of pocket.
- No Family Drama – The emotional toll on those you leave behind will already be high. There is no reason they should have to worry about financial things, too. Why add to the stress and sadness they’re already feeling? Knowing that all your final expenses are taken care of will make the whole process a lot smoother. Financial worries can cause infighting in the family, too. Who will pay for what?
- Peace Of Mind – The average cost of a funeral is nearly $10,000. It might be more, though. If you get a policy that covers much more than that, you can take care of almost anything associated with the death of a loved one. Final expenses can quickly spiral out of control. It helps to have a solid, high-paying policy in place. If you don’t have final expense insurance, your family could be suffering needlessly.
- Worry-Free Family – Your family won’t have to worry about money at all when you pass. There won’t be sibling rivalry, scrambling for money, or infighting. The focus will be on the family, not on money.
Ways that Insurance Can Provide Support for Final Expenses
Planning for the end of your life is not pleasant. No one wants to do it. But, the thought of leaving your loved ones to take care of your final expenses isn’t pleasant, either. In some cases, financial obligations can delay settling upon your estate. Think about these five points about final expenses and how final expense insurance can help pay for them.
- Funeral Costs Can Be Very Expensive:
Funeral costs are always going up. Caskets and headstones are just part of the total expense outlay. You can read more about the complete expense outlay in the table below. There are transportation costs, clergy donations, ceremony fees, and a whole lot more.
- Funerals Are Just One Of Many Final Expenses:
Funerals may be the biggest final expense, but they’re certainly not the only one. Household bills, unpaid medical bills, and outstanding home loans all have to be paid. Credit card balances and utility bills are just some of what you have to think about. There are many unplanned financial expenses and other things you have to think about. There’s a whole lot that’s going to come up when someone dies.
- Final Expenses Can Have An Impact On Your Will Planning:
You may have come up with a will or estate plan without thinking about the final expense costs. It might just be now becoming clear that final expenses can take a toll on the bank accounts of loved ones. A final expense policy may make sense and the cash payout can help your beneficiary with some of the financial costs left behind like everyday costs or estate taxes.
- You Might Be Able To Use Final Expense Funds In Advance:
There are lots of medical costs in the last months or years of life that might not be covered by health insurance. If your life insurance is a permanent policy, also called whole life insurance, that accumulates cash value over time, you might be able to access this cash value to help pay the medical bills.
- No Medical Exam Final Expense Insurance Is Available:
You’ll probably be able to get no-medical exam final expense insurance. You might just need to answer some simple questions over the phone. However, if you lie, your claim might be investigated and denied after you die.
There are plenty of other ways that the money can be spent, and go to good use. These are true of any life insurance policy. These include:
- Mortgage Protection – Do you currently own a house that has a mortgage on it? How will you pay it off after you die? Buying a whole life insurance policy for the cost of your mortgage and any other unpaid debts will help take some of the financial burdens off your family who are left behind when you die. Are they really going to be able to survive without your income?
- Funding For Retirement – Over a long period of time, you may discover you no longer have much of a need for a death benefit. You may come to the conclusion that all your final expenses have been completely taken care of. You can take policy loans and surrenders from the stored cash value of your whole life policy, and you will be able to supplement your retirement income. That is a sweet deal for many older people in retirement who just aren’t making enough money from social security and who don’t have enough saved up. Many people take out loans and surrenders from their accumulated cash value.
- Funding For College – We all know how important education is. It is very important and very expensive. You can help with that financial burden by taking out policy loans or surrenders to help fund your children’s education.
- Estate Planning – Buying a whole life policy is sometimes used to help with estate taxes and costs. This can help your loved ones because they won’t have to sell their stuff or borrow money to cover those costs.
- Charitable Giving – You can also name a charity as a beneficiary on your whole life policy. It is a very effective way to make a big donation to your favorite charitable organization.
Final Expense Cost Outlay
We came up with this handy chart to help you see just how expensive death expenses can be. If you think you and your siblings will just be able to come up with money easily, you’re probably in for a surprise. Once you take a look at this chart, you’ll see why final expense insurance makes a whole lot of sense.
- Casket and Vault – $3,700
- Basic Funeral Services Fee – $2,000
- Funeral Facilities Fee – $900
- Embalming – $700
- Body Preparation – $200
- Service Car/Van – $100
- Hearse – $300
- Transfer of the Deceased – $300
- Memorial Service – $150
- Total Expense – $8,350
- Other payments, e.g., cemetery plot, headstone, etc. not included above
After you die, you won’t have to worry about anything else. You won’t have to worry about your bills…but somebody will! Why put your family through all that? Why force them to pay money out of pocket? Final expense insurance is a no-brainer if you don’t have whole or term life insurance already.
As you can see from the list above, dying is very expensive. No matter what statistic you look at, the number is high. Some put it as high as $20,000 or more. The National Funeral Directors Association puts it around $8,000, but there are sometimes unrelated, optional, unexpected, or closely associated costs. Cemetery expenses have to be considered, too. The total cost can be pretty exorbitant when all is said and done. Think of this, too. The average American owes about $10,000 in credit card debt already. That doesn’t include what’s due on your home, as well as other legal and estate stuff. All these things add up a big financial mess that can take several years to pay off. You don’t want to put your family in that position. Final expense life insurance can take that concern away from your family, letting them mourn you and handle everything else without having to worry about where they’re going to come up with the money.
Understanding the Basics
Final expense life insurance is a specific type of insurance policy written for a very specific purpose: to take care of your funeral costs and other small debts lingering around after you’re gone. Most policies don’t pay out that much. They range in payout from several thousand dollars all the way up to a maximum of $50,000 to $75,000. That is a whole lot less than a term or whole life insurance policy. Of course, there is nothing unusual about that. These policies are only intended to cover short-term and final expenses, and not final and ongoing expenses like retirement or college.
Features of A Final Expense Policy
A final expense life insurance policy gives your family the peace of mind to know that your funeral and burial expenses will be taken care of after you’re gone.
With almost no exceptions, final expense insurance is actually whole life insurance, which is a type of permanent life insurance. Unlike term life insurance, which just pays out a death benefit if you die during the period of time you have the policy, like 10 or 20 years, a whole life insurance policy will stay in effect as long as you continue to pay your premiums every month. This means that it has all of the features of whole life insurance including a cash value that accumulates, it is eligible for dividends, and you can take loans or surrender the policy to access the value before death.
Final Expense Policies with No Medical Exam
The majority of companies won’t require you to get a medical exam to get the policy. However, most of them will have applications with several health questions. If you are in good health, you may be able to qualify for a life insurance policy that pays the whole amount of the policy from the time it is issued. Final expense policies are usually handled with simplified underwriting, and applicants will merely need to answer a few basic questions about their health, but won’t be subject to a medical exam. Since there’s no medical exam, it means almost anyone can qualify for final expense coverage, and so the cost of final expense insurance can be as high as 20 times the amount of a fully underwritten term life insurance policy.
Final expense policies tend to bring in really unhealthy people, so they are usually a bit more expensive. Healthy people can get better deals through completely underwritten products. Final expense insurance really shouldn’t be purchased unless you think you’re going to die in the next five to ten years. The cost is so high that you might be better off just saving the money. Final expense insurance is usually sold as a last resort to the old, unhealthy, or at risk. However, simplified underwriting doesn’t mean a final expense policy is a shoe-in. Applicants might still be rejected if they disclose they have a deadly disease, use illegal drugs, or have been hospitalized for an extended period in the last year.
Not disclosing an illness can put you in jeopardy. If someone is aware something is wrong with them, buys a policy, and then passes away shortly after, the claim may be investigated.
No Medical Exam Final Expense Life Insurance Explained
There are actually some nuances when it comes to the ways that permanent final expense life insurance is offered. It is usually over-simplified as “no medical exam insurance”. This isn’t always completely true. Still, there is sometimes a huge misunderstanding among applicants about no medical exam life insurance. What you have to understand is that they aren’t all that they appear to be, and they can mean different things from one company to the next and one policy to the next. So, let’s very quickly summarize each one.
Let’s look at the four main types of no medical exam insurance. Read about them in more detail below.
- Simplified Issue Insurance – This one is usually referred to as no exam medical insurance. It has very strict underwriting, so you have to be healthy to get in.
- Guaranteed Issue – This is the type of insurance that doesn’t have an exam, and there are no questions, either. It is issued, guaranteed. Anyone in a specific age range can get it.
- Graded Death Benefit – This type of policy offers graded protection. What that means is that the full death benefit doesn’t actually get sent out in the first couple of years, but it will gradually increase over time.
- Level Final Expense – This is a whole life insurance final expense policy. You will pay a steady premium for the rest of your life to cover any final expenses. You usually have to answer a health questionnaire, but there is no exam.
Who Qualifies for Final Expense Life?
Almost anyone can qualify. Since there’s usually no medical exam, the cost can be quite high. It might be better to wait until you’re older to get a final expense policy. However, there are some people who just won’t qualify. While admittance is easy for most people, there are some that just won’t be able to get coverage. Read below to learn more.
Who Doesn’t Usually Qualify?
Some people might not qualify for final expense insurance. People in hospice care, those who are hospitalized, some in a nursing home, those 90 or older, and other vulnerable people might not qualify. Sometimes, a policy will disqualify anyone over 80 or 82. Different companies have different policies and age thresholds, so be sure to check out a number of different companies to get the best deal. Some might cater to very old people who can’t get coverage at a good price elsewhere. That’s the company you want to work with if you’re very old.
If you’re employed in a dangerous vocation, have risky hobbies, or have a serious medical condition or ailment, you could be disqualified.
If you’re currently in the hospital for something serious, or you’ve been hospitalized for a number of weeks in the past year, or you’re living in assisted living or retirement home, you might be disqualified from getting coverage. Shop around so you can get the best policy for your age, health, and final expense plan.
Watch out for special clauses in the contract. It seems smart to just rush into a policy if you think you might die in the next year, but some companies have contestability clauses in their contracts. What that means is that a company or an insurance agent has the right to contest the payment of a death benefit and void the payout if the policyholder dies within the first two years of coverage.
Benefits of Whole Life Burial Insurance
Who needs whole life insurance coverage? If you want to ensure your loved ones are taken care of after you’re gone, whole life insurance might be a good idea. Whole life insurance will pay your beneficiaries a certain amount upon your death. The big difference between term and whole life insurance is that term provides coverage for a limited period of time (like 10 or 30 years), whereas whole life insurance will pay-out as long as the premiums are up to date.
Once whole life coverage has been set up, it can’t be taken away – like revoked, canceled, or reduced. The only way that could happen is if there was fraud or non-payment. So, whole life insurance is a lot more appealing because it offers a level of security and certainty you can’t find anywhere else.
The big advantages of whole life insurance include the following:
- Lifetime Protection – It won’t lapse or go down in value. It covers you for life.
- Steady Premiums – The amount you pay for your policy will never go up.
- Cash Value – A small amount of your premium will build cash value, which can then be borrowed against.
- Guaranteed Death Benefit – Your loved ones will receive a certain amount of money, guaranteed.
You Can Surrender For Cash Value
You can cash in on a life insurance policy. You might be able to access the accumulated cash value on your life insurance policy. One way of accessing your cash value is to withdraw a certain amount of money from your life insurance policy. The amount you can withdraw will differ depending on the kind of policy you have. Withdrawals are typically tax-free but may be subject to a surrender charge. You can also surrender your entire policy for the cash value.
You Can Take Out Loans
One alternative to withdrawing cash is to take out a loan. The interest charged on the loan is at a lower interest rate than that charged by the banks. But, even though the loan does not have to be repaid before your death, any unpaid balance on the loan will be deducted from the death benefit.
A lot of older people have trouble coming up with money for certain late-life expenses. If you’ve been paying into a whole life insurance policy for a long time, then you should be able to take out a loan on it at a very low-interest rate. That’s ideal for older people who can’t get loans at good interests in other ways. If you’ve been paying money into a life insurance policy for a long time, you deserve to be able to make some money off that.
You Can Qualify For Dividends
Owners of whole life insurance have what is known as a “participating policy“. This means that their policy is eligible for dividend payments, which can help offset the cost of the policy. In some companies known as mutual companies, whole life insurance owners are actually the owners of the company.
Insurance terminology can be really difficult to wrap your head around. It can be frustrating, intimidating, and confusing trying to figure out what all the jargon means. It doesn’t have to be confusing, however. We’ll try to make it simple. Ok, let’s talk about something that a lot of people have trouble understanding – dividends. Dividends sound really confusing, but they’re actually not. Let’s start from the bottom and work our way up.
First off, every single insurance policy is a contract, and that just means it is an agreement between the policy owner, which is you, and the company, which is the insurer. That part is not that hard to figure out. The contract comes down to this: you agree to pay a premium for a certain amount of insurance, and the insurance company will pay out the face value of your policy to your beneficiary when you die.
So, the participating element in this situation refers to your profit sharing with the company. Participating policies are often a whole life insurance policy that pays dividends. A dividend is a portion of the insurance company’s profits that are paid out to policyholders as if you were a stockholder or investor. The policyholder is usually offered many choices of what to do with the dividends when they’re paid out.
Participating Policies Are Often A Whole Life Insurance Policy That Pays Out Dividends
Participating policy dividends can be used in several ways:
- Take It Out As Cash – The insurer will send you a check for whatever the dividend is.
- Premium Reduction – The dividend amount can be deducted from your premium.
- Savings – Dividends can be left with the insurance company to earn interest.
- Buy More Insurance – Can be used to buy additional paid-up insurance.
Who Should Buy Final Expense Insurance
Who usually purchases a final expense policy? Even though people of all ages can typically buy final expense insurance, this type of coverage is mostly sold to senior citizens. Due to this, a final expense policy can be an excellent alternative for more traditional types of coverage – especially if a senior citizen has already been denied coverage elsewhere.
The short answer is that anyone and everyone should buy final expense insurance. Everyone is going to die, and final expense insurance can take care of something that every family will have to deal with.
If you want to save your family the trouble of dealing with your end-of-life costs, go ahead and purchase final expense insurance.
Top Ten Reasons To Buy Final Expense Insurance
- Keep Your Loved Ones Free Of Worry – If you make your funding plans ahead of time, you won’t place a heavy burden on your loved ones after you die.
- You Won’t Worry – You’ll take comfort with the knowledge that your funeral expenses are taken care of ahead of time.
- Exempt Assets – The final expense plan might be classified as an excluded asset so you can qualify for Medicaid and SSI.
- Flexibility – Your beneficiaries will have the money they need to take care of any expenses that come up, from medical bills to other small-time debts.
- The Value Of The Fund Will Increase Over Time – When you put aside funds in advance, the death benefit will increase at a predictable rate of growth, just like a savings account.
- Tax Time Will Be A Lot Easier – If you transfer funds from an investment, you won’t have to worry about taxation or growth.
- A Custom Plan For Everyone – Your insurance agent will have a plan that suits your needs specifically in terms of cost and health conditions.
- Customer Friendly Plan – Any funds that are left over after paying your funeral costs will be sent back either to you, your beneficiaries, or your estate. Make sure that your plan offers this, though. All plans don’t have it.
- Window Of Consideration – Check to see if you have a window of time where you can change your mind. Some plans offer 30-day money-back guarantees where you can cancel and get a full refund.
- Good Idea – It’s just a smart move. Advance planning is endorsed by lawyers, trust officers, and financial service professionals as a smart way to provide for final expenses and preserve your wealth for your beneficiaries. Simply put you need life insurance.
How Old Should You Be?
While you don’t have to be a certain age to purchase final expense insurance, you should probably be a senior citizen before you buy it. For people under 60 years old who are not disabled or have a pre-existing condition, a term life insurance policy or very small whole life policy is usually a more cost-effective solution. You’ll save money.
However, if you want to be absolutely sure, you can purchase it as a middle-aged adult. Burial expenses will probably rise over time, so a small whole life policy again will almost always make more sense unless you have a terminal disease. If you have a family, there is no time too soon to purchase it. But, you might be better off with a whole life insurance policy. Burial insurance is quite expensive, and it is usually better for the very old. You might be better off saving that money every year because the premiums can be so high. Since almost anyone can qualify, people have to put up a lot.
How To Find The Best Final Expense Insurance Rates
Getting the best final expense insurance rates can depend on a number of factors. The best tips for keeping your rates low include the following:
- Shop A Number Of Different Companies – When you’re shopping for final expense insurance, it is a good idea to work through a company that has access to more than just one insurer. If you do this, you can get policy information and premium quotes from a number of different insurance companies, and you can see exactly what you have available to you. You will begin to see that the rates for final expense insurance can vary a great deal from one company to the next – even on similar amounts and types of final expense insurance coverage.
- Find A Good Payment Plan – Most plans are paid on a monthly basis. However, you can pay them once per year. That might work out to a cost savings in the end. Most carriers don’t accept credit cards, but they might charge a small fee if they do.
- Check Out Reviews Online – A lot of companies will have reviews posted online from previous customers. Take a look at the most positive and most negative reviews. If you read through all these reviews, you can pick a company that has the history, experience, and reputation you need. That will definitely go a long way in making the decision less stressful. Check to see if your carrier has an AM Best “A” rating. That will let you know if they can pay out their policyholders.
- Plan Your Own Funeral – This is a big tip for saving burial and funeral cost money. Our loved ones sometimes want to give us a great funeral even if they can’t afford it. If you plan your own funeral and burial, you can pick how much money to spend and buy insurance as necessary. If you can handle all of the funeral planning, then you’ll know exactly how much everything will cost. That also takes care of a lot of difficult stuff for your family. Even if they have the money because you purchased a final expense life insurance policy, why should they have to plan everything? If you’ve got free time, consider planning your own funeral and mapping out the whole process.
- What Is Your Health Like? – Make sure you have a crystal clear understanding of your past and present health. If you have a serious health issue, you might not be able to get final expense insurance. If you lie on the telephone or application, your claim could be investigated upon your death. You don’t want your children to have to come up with the money because you lied when you got a final expense plan set up. It’s always safer to just tell the truth and work with a provider who will take you as is. Or, look into another type of insurance policy.
These tips will help you get the best deal on your final expense insurance policy. Why pay more than you have to? If you just spend a little more time shopping around, you can get a much better deal.
10 Best Companies for Final Expense Insurance
Mutual of Omaha
The absolute best company for final expense insurance is Mutual of Omaha. You can receive coverage from $2,000 to $25,000. Mutual of Omaha provides coverage for people 45 to 85-years-old. No medical exam is needed if you want final expense insurance from Mutual of Omaha. They have affordable rates, and their Living Promise Whole Life is our top choice for final expense/burial insurance coverage. Mutual of Omaha has two different final expense insurance, which differs in the amount paid out. Mutual of Omaha has the best underwriting process, which makes them one of the best companies for final expense insurance.
If you are looking for a company that offers several coverage types, Foresters Financial is worth looking into. Foresters Financial has level, graded, and modified final expense insurance. They provide coverage in all states except Oregon and will cover someone up to the age of 121-years-old. Besides a final expense policy, Foresters offers other benefits to its policyholders, including grants and scholarships and an emergency assistance program. Foresters Financial is one of the best companies for final expense insurance because of the range of coverage.
Available in all states except Maine, New York, and Pennsylvania, AIG has final expense insurance coverage from $5,000 to $25,000. It will cover applicants from 50 to 85 years-old. A one-page application is all it takes to be approved. You can be covered in little as 15 minutes once the application is complete. No medical exam is needed, and they accept people who have HIV or AIDS, Angina, internal cancer, Dementia or Alzheimer’s, and more. AIG is one of the best companies for final expenses because they have guaranteed acceptance.
Another guaranteed plan, Gerber Life, is for more than infants and toddlers. It will cover 50 to 80-year-olds for final expense insurance. No medical exam is necessary, and you can receive coverage from $5,000-$25,000. Not available in Montana, Gerber Life has a simple application and allows payments to be made by credit card. Although Gerber Life is one of the younger insurance companies on this list, Gerber Life is one of the top companies for final expense insurance because they offer one of the lowest premium prices and because the application process is simple.
AARP Easy Acceptance
Easily one of the best final expense insurance companies out there, AARP Early Acceptance is available in all states except Montana, Minnesota, and Missouri. New York Life provides AARP’s life insurance. You or your loved one would be covered until the end of their life with a coverage amount of $25,000. You can use the final expense insurance to take care of medical and funeral costs, rent or mortgage payments, and unpaid bills. No medical exam is necessary, and AARP will accept new applicants from 50 to 80-years-old. You have one easy health question to answer and then will be guaranteed acceptance, at least if you aren’t currently ill.
If you are looking for value and flexibility, look no further than Colonial Penn. Offering new coverage to people 50 to 85-years-old, Colonial Penn’a Guaranteed Acceptance Life Insurance is excellent final expense insurance. No medical exam is needed, and you can be covered for up to $50,000. Colonial Penn’s coverage will begin to build a cash value after the first year of coverage. Premiums are locked in, and rates will not change. You have flexibility in when to make your payments. You can pay monthly, quarterly, semi-annually, or annually. This flexibility makes Colonial Penn one of the best final expense insurance companies.
Established in 1850, Aetna has been providing insurance for a long time. Not available in California, Connecticut, District of Columbia, Hawaii, Maryland, Maine, New York, Vermont, or Washington, Aetna provides coverage to new applicants from 45 to 89-years-old. They offer three types of coverage, with coverage amounts ranging from $3,000 to $35,000. There are no height and weight guidelines. The policy will never expire, and there is no waiting period with underwriting approval. Once the death benefit is paid out, the money can be used on anything as there are no restrictions.
Transamerica is one of the best final expense insurance companies because they offer new policies from 0 to 85-years-old. Transamerica provides favorable underwriting for numerous health conditions even though they may be considered high risk. Much like Aetna, there are no height and weight restrictions. With two types of coverage, Transamerica will cover from $1,000 to $50,000 of final expense coverage. Its two types of coverage are Immediate Solution, which pays 100% on day one, and Easy Solution will payout 110% within year one and two and 100% starting year three.
Golden Solutions Plus is America Amicable’s plan name. They will cover new applicants from ages 50 to 85-years-old. With three types of plans, American Amicable provides coverage from $2,500 to $35,000. The three plans are based on underwriting results. America Amicable has quite competitive rates when it comes to tobacco users. With America Amicable, you have the opportunity for optional riders. These riders can be grandchildren term children term, nursing home waiver, and accidental death. If you choose to apply for final expense insurance from America Amicable, you should receive approval in ten minutes. America Amicable coverage is not available in Maine, Montana, New Hampshire, or New York.
Americo’s final expense insurance is called the Ultra Protector Series with two different burial life expense plans. Offering coverage for new applicants from 50 to 85-years-old, Americo offers two-level death benefits plans for people who have riskier health conditions without a two-year wait. Regardless of your health, Americo can provide you with a final expense policy with no waiting period. One of the very few plans available on the market, Americo’s Ultra Protector Series, offers 100% coverage from day one for people with COPD or emphysema. This extra coverage makes Americo one of the best final expense insurance companies.
Speed Of Policy Issuance
So how long does it take to get final expense insurance after applying? Coverage can actually be gotten relatively quickly. A lot of the time, there is no medical exam required. Almost anyone in a certain age bracket with no serious medical conditions can qualify.
How Long Will You Need to Make Payments?
You will usually need to make premium payments for as long as you want the policy to stay in full force. If you stop making payments, you could lose your coverage. If you let your coverage lapse, they can cancel your policy, and you’ll be out of luck. If you purchase final expense life insurance early enough in life, and your dividend payments are high enough, you may be able to have your dividend payments cover your cost of insurance and you may not need to make additional payments.
The Bottom Line on Final Expense Insurance
Final expense insurance is a must-buy item for you and your family. Do you really want to leave them hanging after you’re gone? You want them to come together for a time of grieving, healing, and love. You don’t want to complicate that with a lot of financial infighting and negotiating. It can really ruin your funeral and mar your memorialization.