Final Expense
Final expense insurance helps seniors reduce the burden of end-of-life bills on their loved ones. Need help? Check your options here.
What is final expense insurance?
Final expense insurance is a type of low-death-benefit life insurance that pays for funeral costs and other final expenses. It can be bought as a secondary policy to add to the benefits of other life insurance policies or as a type of guaranteed issue coverage that does not require a medical exam.
Most of the time, policies that pay out less money have lower premiums than policies that pay for funeral and burial costs. On the other hand, if you are a high-risk customer, you may find it easier to get final expense insurance than other types. It is also a good choice after a certain age or if you start to have health problems.
What can I pay for with final expense insurance?
Final expense insurance was made to help older people pay for things like funeral costs when they die. The National Funeral Directors Association says that the average funeral, including the cost of embalming, the ceremony, and the burial, costs $10,000 or more.
A plan for final expenses prepares you financially for everything that goes along with the typical cost of a funeral, such as:
- Funeral home rental fees;
- Other funeral home costs, such as a viewing, service, or memorial package;
- Transportation to and from the cemetery;
- Burial expenses, such as plot, grave marker, and casket;
- Embalming costs, if you plan to have an open casket;
- Cremation costs if you decide to be cremated, such as a cremation casket or urn and transportation of your remains;
- The officiant fee for service; and
- Additional touches for your final sendoff, like the ceremony, music, and flowers.
Your family can use the money from a final cost plan in any way they want. Many families use the money from their final expense insurance to pay for things like:
- Medical bills, hospice care, or other end-of-life expenses;
- Credit card, auto loan, or other debts;
- Day-to-day expenses for your partner; and
- An inheritance for kids or grandkids.
Consider all of these aspects before getting a final expense plan. Our insurance agents from Simple Choice Insurance Brokerage can assist you in selecting a plan that meets your needs.
When to buy a final expense policy?
If you are a mature adult or a senior, burial or funeral insurance is a popular life insurance product. In fact, most carriers offering final expense products have a lower age limit for qualification. Depending on your carrier and policy, there are also age limits for final expense coverage.
Some policies stay in force until death (assuming premiums are paid), while others pay out at age 100. For many people, final expense is a logical next step once many of their major financial responsibilities, like raising children and paying mortgages, are past them. People often shop for final expense insurance when:
- Their term life policy expires.Term life insurance policies typically last 10 to 30 years, so it is common for people in their 50s and 60s to have a policy expire. If you no longer require a large policy, final expense can be used to cover funeral or other end-of-life expenses.
- They no longer have group coverage. If you previously had a policy through work, you may need financial protection after you retire. Final expense can provide right-sized coverage later in life.
- They no longer qualify for term or permanent coverage.It is often possible to purchase term or permanent policies into your 70s, but qualifying becomes more difficult and expensive as you age. When you have fewer options, final expense can help you get the necessary protection.
Advantages of final expense life insurance
For older adults who need to pay for a funeral or other related expenses, final expense insurance has many advantages. Almost any senior can purchase a final expense plan without a health exam, and they typically pay out quickly when a claim is made. As a result, beneficiaries can avoid out-of-pocket expenses.
For many people, final expense insurance may be a better option for covering funeral costs than a prepaid funeral plan. A final expense death benefit is guaranteed after any required waiting period. Burial insurance can help you avoid having to pay for your funeral and burial expenses out of pocket or deal with the hassles of a prepaid plan.
Is final expense right for me?
If you are about to retire or have recently retired and are looking for a way to cover end-of-life expenses, final expense may be a good option for you.
By ensuring that no bills or debts are left behind, you can help relieve financial stress for your loved ones. It’s a cheap and easy way to provide for your family after you are gone.
To learn more about Final Expense, contact one of our agents or get a quote from us using the quote box given above.