Final expense insurance (also known as burial insurance or funeral insurance) is a form of permanent life insurance that can be used to cover the costs of death and funeral expenses. It covers medical costs and any additional end-of-life expenses. Final expense insurance doesn’t expire and will remain as long as the premium is paid every month until you perish.

It’s a common requirement for life insurance holders to have a medical exam done before they get approved. With final expense insurance, no medical exam is needed, just a simple questionnaire will get you insured.

Types of Plans

Guaranteed Issue Life Insurance

Also known as no medical exam life insurance, is one of the plans that can be chosen with final expense insurance. It requires no specific health qualifications. This insurance is geared towards people who have detrimental health conditions and don’t have many options for life insurance. You are automatically guaranteed a policy, especially if you’re between the age range of 50-80 years old. The downside to guaranteed issue life insurance is the expensive premiums. Premiums are high due to the policyholders already being in such poor health.

Simplified Issue Life Insurance

Simplified issue life insurance targets younger people with no documented health issues. Unlike guaranteed issue life insurance, simplified issue life insurance requires a health questionnaire before you can hold a policy. Although it is still a simple process, answering a few questions about your health will affect whether you can get life insurance. Life insurance companies use your answers to garner statistics on your estimated lifespan. While there is a high approval rate, there are a few cons associated with this plan, such as limited choices in life insurance companies, fewer death benefits, and much more.

Benefits of Having Final Expense Insurance

Aside from the assurance that your loved ones will have the funds to cover your death and burial costs, there are a few more benefits associated with getting final expense insurance coverage.

  • No medical history needed – As mentioned before, this form of life insurance doesn’t approve or disapprove you based on your medical history
  • A piece of mind – By purchasing this form of insurance ahead of time, it will allow you to discuss this matter with your family before its too late.
  • Can offset the funeral costs – With the right plan, final expense insurance can offset the many costs associated with funerals, such as the tombstone, funeral director, gravesite, and more. (Source)

Final expense life insurance is one of many ways to ensure finances associated with death and funeral costs are handled efficiently. It’s a great option for people looking for the easiest and most simple way to get life insurance. While it has its downsides, as most life insurance policies do, it’s better to have it than to leave your family with the financial burden of your death.