How Much Does Final Expense Insurance Cost Per Month
Introduction
Buying final expense insurance is easy. But, before buying the insurance many think of the cost of the life insurance. The first question that pops up in their mind is how much does final expense insurance cost per month.
Final expense insurance is designed to give you mental peace. To buy the final expense insurance you have to pay a premium per month. The premium cost is set low to make it affordable for everyone. Let’s discuss in detail how much does final expense insurance cost per month.
Final Expense Insurance
The final expense insurance is to cover your final expenses. It is a whole life insurance that aims to cover the cost of the funeral services. It also covers the cost associated with funerals such as burial services. Besides, final expense insurance can also cover your hospital bills.
As you get old, your visits to the hospital increase. Since seniors are prone to fall sick, they need to visit doctors. They need medical attention. This leads to hospital bills. When you die, your hospital bills pile up over your final expenses. In such situations, final expense insurance can help your family to cover those bills.
Moreover, you do not need a medical exam to get this insurance. Choose a plan, designate a beneficiary and pay the premium. Follow these crucial steps and you can have final expense insurance.
Benefits of Final Expense Insurance
Final expense insurance is beneficial for seniors as it covers expensive services on the final day. We know that burial services are expensive. Covering those expensive services can be a challenging task for a family. If a family does not have enough resources, final expenses put a financial burden on them.
You can save your family from this financial stress with final expense insurance. There are only benefits and no disadvantages. Some key benefits of this life insurance are explained below.
Easy application process
Fortunately, final expense insurance has an easy application process. Seniors can easily apply for the insurance. There are no difficult steps to follow. Just open the website on a computer or a phone and apply.
No health assessment
Typical life insurance includes health assessment. They assess the applicant’s health and offer the insurance. But in final expense insurance, there are no health tests. You can apply without taking a medical exam. This helps seniors to apply without fearing rejection.
Reasonable plan
Final expense insurance is one of the reasonable life insurances. The premium rate is low, making it affordable for you.
Instant benefits
Another reason why the final expense is crucial is its policy to give Instant benefits. Death is unpredictable. It can happen anytime. In this difficult time, final expense insurance provides you with immediate help. Your loved ones do not have to give money out of their pockets.
Other expenses
Besides burial and final expenses, final insurance covers other expenses. For example, with death benefits, your family can cover your debts. Your medical bills can also be covered.
Cost Of The Final Expense Insurance
Everyone wants life insurance to have a secure future. Seniors always seek life insurance but the cost stops them from buying it. Knowing final expense insurance rates is an essential factor for the applicants. It plays a vital role in life insurance. Before choosing a plan, everyone has the same question and that is “How much does final expense insurance cost per month?”
Funeral or burial insurance can cost you about $25,000. You have to pay $40 to $80 per month for final expense insurance. This cost per month is called the premium amount. Mind you, the cost per month varies from company to company.
Final expense insurance premiums
The premium is the monthly cost of the final expense insurance. Final insurance has premium rates. You have to pay the premium amount to activate the insurance. If you do not, the company can deactivate the insurance.
Additionally, the premium amount is not fixed. It varies with your age, gender and health status. Premiums also depend on the policy type, company and company’s location.
What Affects Your Final Expense Insurance Costs?
The premium amount tells you how much final expense insurance costs per month. If the premium amount is high, the insurance will be expensive. And if the premium rate is low, your insurance will be affordable.
However, the premium rate varies. It depends on factors such as:
- Age
- Gender
- Policy type
- Company
- Location
- Health status
These factors affect the premium cost per month. When the premium rate goes up and down, it affects the cost of final expense insurance as well.
Age
Your age is one of the crucial components of final expense insurance. The cost per month depends on your age. With age, the cost of life insurance increases. For example, if you are over 70, you will have to pay a higher premium amount. And, if you are below 70 you will have to pay a lower premium. So, it is recommended to buy your life insurance as soon as possible.
Type of the policy
Choosing the right policy is crucial. Some policies offer maximum coverage. However, the monthly cost of such a policy is significant. Whereas, some policies have low premium rates.
For example, a simplified issue policy offers average coverage. Also, it has low premiums. But, guaranteed issue policy offers maximum coverage and the monthly cost is high.
Gender
The premium amount also depends on the applicant’s gender. This is because of the sex gap in life expectancy. Studies suggest that women live longer than men. In men, there is a higher mortality rate. Therefore, the cost is less for females than males.
Death benefits
The amount of death benefits you want also decides the premium rate. For instance, if you want great death benefits, you have to pay higher premiums. Yet, if you want small death benefits, the cost per month will be low.
Applicant’s health
Applicant’s health is another factor that affects the cost of funeral insurance. The cost is less for healthy individuals. Whereas, the cost per month is higher for people with health issues.
Type of company
The premium amount also varies from company to company. There are numerous companies, offering plans with different rates. Some have a lower premium amount, while others have a higher premium rate.
Insurance Cost Comparison
It is essential to compare the cost of the insurance plans. It makes it easier to buy the plan. The insurance industry is vast. Many companies offer plans with different policies and regulations. You must check policies. Most importantly, you must compare the cost of the policies.
The insurance cost depends on policy type and company type. There are two types of final expense insurance policies such as:
- Simplified issue policy
- Guaranteed issue policy
Simplified issue | Guaranteed issue |
The monthly cost of the policy is $40 | The monthly cost of the policy is $70 |
You can buy this plan for $5000 to $25,000 | You can buy this plan for $5000 to $50,000 |
This policy is less expensive | This policy is expensive |
Moreover, there are final expense insurance companies that offer affordable plans. Some of the best companies with affordable premium rates are:
- State Farm
- Pacific Life
- Ethos Life Insurance
- Mutual of Omaha
- Ethos
- New York Life
How To Reduce The Cost Of The Monthly Premiums?
Fortunately, there are options to reduce the cost of the premium. Read the following points if you want to reduce the premium cost.
- The first way to reduce the monthly premium cost is to buy the insurance as soon as possible. Younger applicants have the advantage of low premiums.
- Before choosing a provider, compare the cost and the coverage level
- It is best to choose a policy with average coverage. Such policies have low monthly premiums.
- The easiest way to reduce the cost of premiums is by taking care of your health. Remove bad habits from your life and exercise daily. If you have good health, you will have to pay a low premium.
Bottom Line
The most essential thing to know for an applicant before buying life insurance is “How much does final expense insurance cost per month.” When he knows how much it costs, buying a plan becomes easy. It is best to search and compare the costs before buying a final expense insurance policy.
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We Are Here To Help With Your queries !
The monthly cost of the final expense insurance depends on your age, health status, policy type and gender.
Yes, you can reduce the monthly cost by buying insurance at an early age. Comparison of the insurance companies and policies can also help you to reduce the cost per month.
The cost of the insurance is affected by a few factors like age, insurance company, health status, gender, and policy type.
Various burial insurance companies offer maximum benefits. Some of the companies are Mutual of Omaha, Ethos, New York and State Farm.