Final expense insurance, also known as burial insurance or funeral insurance, is a type of life insurance that is designed to cover the expenses associated with a person’s funeral and other end-of-life costs. These expenses can include the cost of a casket, burial plot, funeral service, and other related costs.

Final expense insurance policies are typically smaller in coverage amount than traditional life insurance policies, with coverage amounts ranging from a few thousand dollars to around $30,000. They are often marketed to seniors or those who may have difficulty qualifying for traditional life insurance due to age or health issues.

Unlike traditional life insurance policies, final expense insurance policies do not require a medical exam, and premiums are usually fixed and affordable. In addition, the policy benefits are paid out quickly, often within a few days of the policyholder’s death, to help cover the immediate costs of the funeral and other end-of-life expenses.

There are two main types of final expense insurance:

• Simplified Issue Final Expense Insurance: This type of final expense insurance requires applicants to answer a few health questions but does not typically require a medical exam. The underwriting process for simplified issue policies is generally faster than for fully underwritten policies.

• Guaranteed Issue Final Expense Insurance: This type of final expense insurance does not require any medical exam or health questions, making it an option for those who may have pre-existing health conditions that would disqualify them from other types of life insurance. Guaranteed issue policies generally have a waiting period of one to two years before the full death benefit is paid out, and premiums are typically higher than for simplified issue policies.

Things to consider and questions to ask your agent for final expense insurance?

• Coverage Amount: How much coverage do you need to cover your end-of-life expenses? Consider funeral costs, burial or cremation expenses, and any outstanding debts or medical bills.

• Premiums: How much will your premiums be, and are they fixed or will they increase over time? Can you afford the premiums for the duration of the policy?

• Underwriting: Does the policy require a medical exam or health questions? What health conditions might disqualify you from coverage?

• Waiting Period: Does the policy have a waiting period before the full death benefit is paid out, and if so, how long is it?

• Beneficiary: Who will be the beneficiary of the policy, and can you change the beneficiary if needed?

• Policy Riders: Are there any additional riders or options available, such as accidental death coverage or inflation protection?

• Company Reputation: How long has the insurance company been in business, and what is their reputation for customer service and claims handling?

• Other Options: Are there other types of life insurance policies that might be more suitable for your needs, such as term life insurance or whole life insurance?

It’s important to carefully review the policy and ask your agent any questions you may have to ensure you understand the coverage and its limitations before making a decision.

What benefits of final expense insurance?

• Covers End-of-Life Expenses: Final expense insurance is specifically designed to cover the costs associated with a person’s funeral, burial, and other end-of-life expenses, helping to relieve financial burdens on loved ones.

• No Medical Exam: Many final expense insurance policies do not require a medical exam, making them an option for those who may have pre-existing health conditions that would disqualify them from other types of life insurance.

• Fixed Premiums: Final expense insurance premiums are often fixed for the life of the policy, meaning that they do not increase over time. This can make it easier to budget for the cost of insurance and avoid unexpected premium hikes.

• Quick Payout: Final expense insurance policies typically pay out the benefit quickly, often within a few days of the policyholder’s death, helping to cover immediate expenses without delay.

• Guaranteed Acceptance: Some final expense insurance policies offer guaranteed acceptance, regardless of age or health status, making them an option for those who may not qualify for other types of life insurance.

• Flexible Coverage Amounts: Final expense insurance policies can often be customized to fit a person’s individual needs, with coverage amounts ranging from a few thousand dollars to tens of thousands of dollars.

• Peace of Mind: By knowing that end-of-life expenses will be covered, final expense insurance can provide peace of mind to both the policyholder and their loved ones.