What is Final Expense Insurance?

Also known as whole life insurance, burial insurance, or funeral insurance, final expense insurance is a permanent life insurance policy that is used to cover posthumous expenses. Final expense insurance is not much different from regular life insurance, but it is much easier for individuals to get approved, as there is no medical exam required. Final expense insurance doesn’t expire and with be effective as long as monthly premiums are paid, which will be based on whichever insurance company you choose.

Why should I get Final Expense Insurance?

Easy to apply – There is no hassle when it comes to applying for burial insurance and you’re more than likely to get approved than with traditional life insurance.

Funeral funds – Final expense insurance coverage for any finances left behind once you pass, which will be beneficial for loved ones to use for funeral expenses.

Helps with medical debt – Money from final expense insurance can be applied to any medical bills that are left once you pass.

Death benefit usage – The death benefit offered with this life insurance can be used for other finances beyond just posthumous expenses, which can be helpful for you and your family.

Control of your funeral – Having final expense insurance gives you the authority of how you want your funeral to be planned.

Types of Final Expense Insurance

There are three different types of final expense insurance: guaranteed, simplified, and term life insurance. Listed below are simplified definitions of what each type of insurance provides for beneficiaries.

Guaranteed life insurance – Otherwise known as burial insurance, this policy targets seniors who aren’t eligible for a traditional life insurance policy. There are no health questions involved when applying for guaranteed life insurance, which is typically required for most life insurance policies. Guaranteed life insurance can have expensive premiums with extremely low death benefits.

Simplified life insurance – Quite similar to guaranteed life insurance but is geared towards seniors with a mild health risk. A health questionnaire is required to be approved.

Term life insurance – This insurance serves as a contract between the beneficiary and the insurance company. It lasts for only a certain period, which can be 10-20 years, or when you turn 65. In return for paying the monthly premium, the insurance company with pay for death benefits if the beneficiary dies during the term of the contract.

How do you get Final Expense Insurance?

It is as simple as a quick internet search, in which you can get a quote online for several different final expense insurance companies. Aside from simplified life insurance, you won’t have to worry about any health questionnaires to get approval and get the additional life insurance coverage you need.

But I already have life insurance?

Even though you may already have life insurance and are satisfied with it, why not pay a little extra a month for insurance made just for funeral and burial costs. This will prevent your beneficiary from having to spend their own money to cover your final expenses.

Final expense life insurance is a necessity to protect your chosen beneficiary from any additional funeral costs not covered by your traditional life insurance company. Premiums vary for each policy, so be sure to do your research and discuss your plans with your beneficiary.