FINAL EXPENSE INSURANCE 2024 GUIDE

As you age, you start to think about protecting your loved ones without being there for them. You do not want to be a burden on your family during your lifetime and after you die. In such situations, final expense insurance is one of the best expense plans you can buy for your loved ones. This insurance covers funeral and burial costs. It also provides benefits to your loved ones after you pass away. Your family is financially secured with final expense insurance.

What Is Final Expense Insurance?

Final expense insurance covers funeral and burial expenses and medical bills. It is a whole life insurance which is also called burial insurance or funeral insurance. Different from traditional insurance, this whole life insurance comes with many benefits.

It provides lifelong coverage. A permanent coverage is provided to you. However, you have to pay premiums every month, to get this lifelong and permanent coverage. You may think that final expense insurance may not be easy to get like other standard life insurance. It is not true. This insurance is less time-consuming and easy to obtain.

Features of final expense insurance

Final expense insurance is known for its exceptional features. These characteristics make this insurance policy one of the best policies. Its features include:

It is a whole life insurance. This means that the insurance is for a lifetime and it does not have any expiration date.
Small premiums have to be paid. These premiums are fixed. Rates do not vary.
Affordable charges
No medical exam is needed.
Easy and simple application process.
Fast approval

How Final Insurance Works?

There is an application process for final expense insurance. The application process is simple and easy. You have to apply for the insurance and an insurer reviews your application. The review process does not take a lot of time. Once your application is approved, your insurance comes into effect.

This insurance offers a fixed amount. It has a set death benefit. After you pass, the beneficiaries will receive this fixed death benefit. The coverage limits depend on the insurer as well. The set amount can vary. It ranges from $3000 to $50,000.

Criteria for final expense insurance

This insurance also has criteria. Everyone cannot apply for this insurance. Final expense insurance is for seniors and only they can apply for it. Seniors who are 50 to 85 years old can apply for the insurance. The age criteria vary from company to company. Different insurers have different age requirements.

However, there are no rules for selecting beneficiaries. The policyholder can choose the beneficiary whoever he wants. Every insurer allows the policyholder to choose the beneficiary as he wants.

Steps involved in final expense insurance

Before applying for insurance, it is vital to research insurance policies. Read about the insurance policies, criteria and options. After careful research, start your application process.
Once your research is done, start the application process. A few questions will be asked. These questions are related to your health. Answer those questions carefully. Be honest and give accurate answers.
Choose a beneficiary. The beneficiary will receive the death benefits. There are two types of beneficiaries: contingent and primary. The death benefits can be divided equally among these two beneficiaries.
Apply. An insurer then reviews your application. After a review, get approval. The review and approval process is less time-consuming. Final expense insurance provides fast approvals.

Benefits Of Final Expense Insurance

Funerals are hectic and overwhelming. Most of all, they are expensive. It becomes hard for some families to cover final expenses. Your loved ones may have to ask for funds to cover funeral and burial expenses. Helping your family in such a challenging situation is a blessing.

Death benefits are provided to your loved ones that help to cover medical and other bills. Final expense insurance removes the burden of the final expenses. Some main benefits are discussed below.

Covers end-of-life expenses

Final expense insurance primarily offers you end-of-life expenses. We are well aware that final expenses are expensive. It costs families a fortune, especially for those who are financially weak. For such families, this insurance is necessary.

Final expense insurance offers coverage of final expenses. It gives services of the crematory, headstone, flowers, and music. Burial and funeral costs are covered. It also offers:

Medical bills
Nursing home bills
Legal bills

Fixed premium rates

In traditional life insurance, the premiums are not fixed. The rates vary every month. They may increase or decrease every month. This makes buying life insurance difficult. This insurance, however, is affordable.

It is easy to buy the insurance because of the fixed premiums. The premiums of this funeral insurance are fixed. They do not vary each month. This makes final expense insurance affordable insurance.

Permanent coverage

Final expense insurance is permanent insurance. It provides permanent coverage. Since it is a type of whole-term insurance, it offers you lifetime coverage. The reason that makes this life insurance a whole-term insurance is its “no expiration date” feature.

One of the best features of final expense insurance is its “no expiry date” policy. The insurance does not have any expiry date. Your insurance will not expire as long as you are consistent with your monthly payments.

Other insurances have an expiry date and you have to worry about that date. But in the final expense, there is no expiry date. The insurance will offer final expense coverage whether you live for the next 20 or 30 years.

Covers debts

If you have any debts to cover, final expense insurance covers those debts. Your family receives the death benefits. These death benefits are used to cover the outstanding debts too. Debts, mortgages, or credit card balances are covered with the benefits. It also covers other day-to-day expenses.

Does not need a medical exam

Another good thing about final expense insurance is that it does not require any medical exam. Traditional life insurance needs you to take a medical exam. Based on that medical exam, your application gets approved. But it is the opposite in burial insurance.

In final expanse insurance, there is no need to go through a medical exam. It is not required. The application may involve some health-related questions. But it depends on the insurer. Some insurers may not even ask these questions. This makes the application process easy. You get a fast approval in final expense insurance.

Usage of death benefits on any expenses

In final expense insurance, death benefits are offered to the chosen beneficiaries. These beneficiaries are your loved ones. These death benefits can be used for any expenses. There are no rules on spending the money that beneficiaries receive.

Usually in life insurance, insurers send the money to families directly. This money is spent only on funerals. However, in final expense insurance, the money can be spent on anything. Beneficiaries are free to use this money.

Fast claim

Death is unexpected. You do not know when it is going to happen. No one is ready for it. Families cannot prepare and arrange everything in a day or two. Arranging final expenses takes time. Such situations are handled perfectly with final expense insurance.

This insurance has the fastest claims payment. If your family need financial support on the funeral day, final expense insurance is there. It pays final expense claims quickly. In less than 48 hours, your loved ones will receive financial support. They do not have to apply and wait to receive the benefits.

Helps your loved ones in difficult times of their lives

Funerals are emotional. Any minor inconvenience makes your loved ones suffer even more. Families get worried and overwhelmed thinking about final expenses. In this tough time, final expense insurance helps your family. It gives financial support on the funeral day.

You are satisfied knowing that you have provided financial security for your family. When you arrange your final expenses, it enhances your life satisfaction. Also, your family does not have to financial hardship. Keep in mind that, Final expense insurance has some drawbacks as well.

Types Of Final Expense Insurance

Term life insurance

As the name suggests, term life insurance is for a limited time. Since it is for a short period, it is less expensive. A small benefit is paid in that limited time. In term life insurance, premiums are paid every month. These premiums do not change. They are fixed.

The limited time of this life insurance ranges from 10 to 20 years. Your life insurance gets canceled if the insurance is not used within a limited time. Additionally, if the premiums are not paid each month, the insurance gets cancelled. But, if you pay a higher premium, you can renew your life insurance.

Whole life insurance

Unlike term life insurance, whole life insurance is for a lifetime. It does not have an expiry date and provides support for the rest of your life. This life insurance is also called permanent insurance because it offers permanent coverage. But it has a higher premium rate.

Whole life insurance stays in effect till your death. Till then, you have to pay the premiums each month. The benefits will go to the beneficiaries.

Simplified issue

There is an underwritten life insurance policy in life insurance. You need to qualify for this underwritten policy. In the application, health-related questions are asked in this policy. You only have to answer these questions and do not need a medical exam.

This life insurance fits best for those who do not qualify for other life insurance policies. If you are not qualified for other life insurance, you should consider a simplified issue life insurance policy. You just have to answer some questions with “yes” or “no.” Based on these answers, you get approval.

Moreover, death benefits are fixed. The benefits do not vary. The rising cost of a funeral is not covered by simplified issue life insurance.

Guaranteed issue

You are guaranteed covered in guaranteed issues without any exam and questionnaire. It is the opposite of a simplified issue life insurance policy. You have to pay higher premiums for this final expense insurance.

Additionally, the death benefits vary and it takes time to receive the benefits. The benefits can be low or maximum depending on your premium payment. Also, it has a long waiting period. The waiting period is 2 to 3 years.

You should consider the guaranteed issue if you have high-risk health problems. If you have any terminal illness then you do not qualify for this life insurance policy.

Non-guaranteed issue

When you buy non-guaranteed issue life insurance, it means you are buying the insurance for a lifetime. This life insurance is permanent. However, the premiums are not fixed. They fluctuate which makes this life insurance unpredictable and not affordable.

Comparing Whole Life And Term Life Final Expense Insurance

Term life insurance and whole life insurance are two different insurance policies. But, there are some similarities between them like both cover your final expenses. Both insurance policies provide funeral and burial coverage and death benefits.

However, the differences are many. A whole life insurance policy offers lifetime coverage while a term life insurance policy does not. Term life insurance policy is cheap and whole life insurance is expensive. Whole life insurance has an investment component. This means that you will have a cash value accumulation. This cash value accumulation is a part of your premium. It is minimal but beneficial.

The table below compares term life and whole life final expense insurance in detail.

Term Life Insurance	Whole Life Insurance
A temporary final expense insurance	A permanent final expense insurance
Available for a short period (10 to 20 years)	Available for lifetime
There is an expiry date	There is no expiry date
Provides coverage for certain years	Provides coverage for the rest of your life
Low premium amount	High premium amount
Cheap life insurance	Expensive life insurance
No investment component is attached	It has an investment component (cash value)
Death benefits are fixed	Death benefits vary

Which insurance is right for you?

There are many final expense insurance policies but people usually buy term and whole life insurance. It is crucial to consider life insurance according to your needs. Buy life insurance based on your needs.

Whole life insurance has high premiums. This makes life insurance expensive. Not everyone can do it. If you cannot afford expensive life insurance, you should consider term life insurance. It is cheaper than whole life insurance. However, term life insurance is for a limited time whereas whole life insurance is permanent. If you want lifetime insurance then whole life insurance is best for you. It locks your premiums for life.

Moreover, your age is also a concern that you need to consider. Some insurance policies have criteria set for age. Look for the age criteria and apply accordingly. Your age also impacts your policy premiums. If your age is near 70 or 80, the premium is high.

Before buying an insurance, search and read about the life insurance policy. Read the benefits and drawbacks of the policies and choose accordingly.

Understanding Final Expense Insurance Riders

Insurance riders are provisions to an insurance policy. Rides give you flexibility and extra benefits. They also offer additional protection. The insurance rider is optional. Adding an insurance rider can restrict or increase the coverage. It depends on your needs.

If you add an insurance rider to your existing policy, it will offer additional benefits and financial protection. Benefits like auto insurance, home insurance and health insurance policies are added. If the policyholder has any terminal illness, then the insurance rider can help him with extra benefits. It will give additional financial support and death benefits.

Adding an insurance rider to your policy can give extra death benefits. The beneficiary will receive accelerated death benefits. However, you need to pay more premiums.

Group Vs Individual Final Expense Insurance: Pros And Cons

Group life insurance

There are insurance policies for employers. Group life insurance is one of them. This life insurance is for big entities like organizations and associations. It provides financial support to its members. Just like other life insurance, group final expense insurance covers funeral and burial costs.

Pros	Cons
Provides financial support to families of employees.	Only the families of the employees get the benefits
Cost-effective	Benefits depend on the type of benefits
Pension benefit	No cash value
No medical exam	Death benefits are small

Individual final expense insurance

Individual life insurance covers burial and funeral costs only when premiums are paid. Beneficiaries receive the death benefits. This policy is for a lifetime. But, they are expensive.

Pros

Cons

Covers funeral and burial costs

Expensive life insurance

No medical exam

Maximum premiums

Covers medical bills

Small death benefits

Final Expense Insurance for seniors

The Final expense for seniors is like other life insurance except it is for seniors. Like other expense insurance, it covers funeral and burial costs. The senior adults can choose the beneficiary who will receive the death benefits. The beneficiary can use the benefits for other expenses like to cover the debts. You qualify for this life insurance policy if you are above 50 years old.

Final Expense Insurance for Veterans

Final Expense Insurance for Veterans covers burial and funeral costs. It gives death benefits to the families of the veterans. These death benefits cover the final expenses of the veterans. The funeral costs include the memorial certificate and burial flag. It also includes flowers and grave markers.

This life insurance also covers other burial arrangements that a veteran receives on his funeral day. However, you have to submit the documents as proof of being a veteran. Only then the beneficiaries will receive the death benefits. Once the documents are approved, the insurance provides benefits.

Integrating Financial Strategies

Life is unpredictable and we must prepare ourselves for what is coming. Financial planning is one of the vital plans of life. It is essential to integrate financial strategies.

Life insurance is necessary to provide financial security. Financial strategies help you to overcome health and life challenges. They help you secure your family. Your loved ones do not have to ask for funds or request loans. Identify your needs and consult agents before buying any life insurance.

Navigating The Path To Protection

As it is mentioned above, navigating your needs is necessary. Buy life insurance according to your needs. Final expense insurance is the best way to navigate the path of protection.

It is designed to protect your loved ones when you pass. It covers all life-to-end expenses. There are many life insurance policies. Each life insurance policy has different terms and conditions. Selecting a life insurance that will meet your needs is important. Reading the guidelines, requirements, and criteria for life insurance is essential.

Nevertheless, whatever life insurance you select will cover funeral and burial costs. Life insurance protects your family with financial support.

Conclusion

Overall, final expense insurance has features that help you to cover funeral and burial costs. It also covers medical bills and debts with the death benefits. Since beneficiaries are free to spend the money on other expenses, they can cover the outstanding debts and mortgages of the insurer. Final expense insurance financially secures your loved one when you are not there for them.