Final Expense Insurance: What Is It, What It Covers & Costs

Final expense insurance is the financial safety net that catches the costs of death. This type of insurance is tailored to cover those inevitable end-of-life expenses, making sure they don’t affect your family’s savings or add stress during an already tough time.

This covers funeral costs which can run up quite a tab these days and settles any remaining medical bills and legal fees. Unlike traditional life insurance with its broader scope, final expense policies are designed specifically for tying up loose ends without leaving behind financial burdens. In this article, we’ll discuss the ins and outs of final expense insurance and why you may want to consider it.

The Benefits of Choosing Final Expense Insurance

Unlike traditional life insurance policies that can leave families waiting for payouts, final expense insurance often boasts quick approval, so you know your family won’t be left hanging.

Affordability

With various payment options available, tailoring the premiums to fit into nearly any budget becomes possible. It’s also less invasive when it comes to medical underwriting; many plans don’t even require a medical exam. Just answer some health questions and you’re on your way.

Peace of Mind

This kind of policy ensures peace of mind by lifting heavy burdens off your shoulders during times of crisis. While no one enjoys discussing their final days, planning ahead with final expense insurance gives policyholders and their families one last gift: tranquility in knowing everything is taken care of.

Policy Features and Restrictions

Final expense insurance, a safety net, has features and limits you should know. These policies usually cap coverage but they’re easier on the wallet than a full-blown life insurance plan.

Risky Hobbies or Activities

Final expense policies often come with exclusions. Common exclusions may include deaths resulting from risky activities or hobbies, such as skydiving or extreme sports. It’s crucial to carefully review the policy to understand what is excluded.

Pre-Existing Conditions

Some final expense plans may have limitations or exclusions related to pre-existing health conditions. So, disclosing accurate and complete medical information during the application process is crucial.

Failure to disclose pre-existing conditions may result in claim denials. Applicants need to provide a detailed medical history and work with their insurance agent to find a policy that accommodates their health status.

Final Expense Insurance vs. Traditional Life Insurance Policies

Final expense insurance and traditional life insurance policies serve different purposes, and understanding their distinctions can help individuals make informed decisions based on their specific needs. Here are the key differences between final expense insurance and traditional life insurance:

Purpose and Coverage

• Final Expense Insurance: This type of insurance is designed to cover the costs associated with a person’s funeral, burial, and other related expenses. It is typically a smaller policy, with the primary goal of easing the financial burden on the family for end-of-life expenses.
• Traditional Life Insurance: Traditional life insurance, such as term life or whole life, provides a broader scope of coverage. It offers a death benefit that can be used for various purposes, including replacing lost income, paying off debts (like a mortgage or student loans), funding a child’s education, or leaving an inheritance. Coverage amounts for traditional life insurance policies are generally higher.

Policy Duration

• Final Expense Insurance: This is often a whole life insurance policy, meaning it covers the insured for their entire life as long as premiums are paid.
• Traditional Life Insurance: There are two main types – term life insurance, which provides coverage for a specific term (e.g., 10, 20, or 30 years), and whole life insurance, which covers the insured for their entire life. Whole life insurance also builds cash value over time.

Premiums

• Final Expense Insurance: Premiums for final expense insurance tend to be lower than those for traditional life insurance. This makes it more accessible for individuals who may not qualify for larger policies due to age or health considerations.
• Traditional Life Insurance: Premiums can vary widely depending on factors such as age, health, coverage amount, and the type of policy. Whole life insurance premiums are generally higher than term life insurance premiums.

Medical Underwriting

• Final Expense Insurance: While some final expense policies may require medical underwriting, there are also guaranteed issue policies available, which means acceptance is guaranteed regardless of health conditions.
• Traditional Life Insurance: Typically involves more extensive medical underwriting, and individuals with certain health conditions may face higher premiums or even be denied coverage.

Cash Value Accumulation

• Final Expense Insurance: Final expense policies may have a modest cash value component, but it is not a primary feature.
• Traditional Life Insurance: Whole life insurance policies build cash value over time, which can be accessed through policy loans or withdrawals.

What Is the Minimum and Maximum Age To Get Final Expense Insurance?

The minimum and maximum age requirements for obtaining final expense insurance can vary depending on the insurance company and the specific policy. Many insurance companies offer final expense insurance to individuals from 45 to 55 years old. Some companies may allow individuals to purchase a policy well into their 80s or even early 90s, while others may have more restrictive age limits.

Apply for a Final Expense Insurance Policy Today

Final expense insurance presents a valuable choice for individuals seeking assurance that their end-of-life costs are covered, alleviating the financial burden on their loved ones. Before making any insurance decision, thoughtfully assess your unique needs and circumstances. We’re ready to assist you in navigating this decision, ensuring that you gain the confidence of knowing your family is financially safeguarded.

If you want to apply for final expense insurance, please fill out our request form. Within 24 hours, our experts will generate a quote for you. Once the quote is ready, we will reach out to you, providing a comprehensive review of all available options.