Final expense insurance is a type of life insurance policy in which the death benefit covers funeral and burial expenses.
This is why the death benefit is usually $25,000 or less.
Final expense policies are also easier for seniors with health issues to acquire.
Let’s go over some basic information on this sometimes misunderstood policy.
Final expense insurance basics
Other types of life insurance like term and whole life are meant to replace loss of income should the breadwinner of a growing family passes away.
Instead, final expense is simply meant to pay for funeral, burial, and smaller, leftover bills for a person who is retired and has major expenses like mortgages paid off.
It’s an important option for individuals to consider because of the rising costs of funerals and burials, which are expected to enter the average of tens of thousands of dollars soon.
Afraid you won’t qualify? Don’t be.
Final expense insurance is meant for people who may not qualify for fully underwritten life policies. There are two types of final expense life insurance policies:
- Simplified issue — Simplified issue life insurance has a detailed medical questionnaire for applicants, but no medical exam.
- Guaranteed issue — Guaranteed issue life insurance policies ask only a few questions to make sure you are not terminally ill.
This ensures almost everyone can qualify for a final expense policy so their families aren’t burdened with funeral or burial costs in an already stressful point in their lives.
How much is it?
Because everyone has a different level of health in their senior years, it’s very hard to quote an average price of policy. Everyone also has different wishes when it comes to their funeral and burial.
So, the best course of action is to call a trusted life insurance agent like the ones at Expert Insurance Team. We can shop your final expense insurance policy to find the best price of coverage.