What Is Final Expense Insurance

Final expense insurance, explained simply

Final expense insurance, sometimes called burial insurance or funeral insurance, is a small whole life insurance policy designed for seniors. Its job is simple. When you pass away, it pays a set amount of cash to the person you name, so your family has money on hand to cover your funeral and other final costs.

What it can pay for

The money is paid directly to your loved one, and they can use it however it is needed most. That often includes:

• Funeral, burial, or cremation costs
• Unpaid medical and hospital bills
• Credit cards and other debts left behind
• Everyday bills while the estate is settled

How it is different from regular life insurance

Regular life insurance policies are usually larger and often require a medical exam and lengthy paperwork. Final expense coverage is smaller, usually between two thousand and fifty thousand dollars, and it is built to be easy to get. Many plans need no medical exam, only a few simple health questions. Because it is whole life coverage, your premium is locked in and the policy stays in force for the rest of your life.

The three kinds of plans

Level benefit. For people in fairly good health. It has the lowest rates and full coverage starts right away.

Simplified issue. For people with some health conditions. No medical exam, just a few questions, and approval is often the same day.

Guaranteed acceptance. For people who have been turned down before. There are no health questions and you cannot be declined, for ages 45 to 85. Keep in mind that these plans usually pay a reduced amount if you pass away from natural causes in the first two years, then the full amount after that.

What does it cost?

Your price depends on your age, your health, how much coverage you choose, and whether you use tobacco. Many seniors pay somewhere between twenty and one hundred dollars a month. The only way to know your real price is to ask, and that takes one short call.

Is it worth it?

A funeral today can cost more than nine thousand dollars, and prices keep rising. For many families, a small monthly premium is a lot easier to handle than a large surprise bill. More than the money, it is the peace of mind of knowing your family will not be left to figure it out alone.

Have questions? A licensed agent is ready to help. Call (800) 000-0000.