(800) 549-1664 TTY 711
Speak to a licensed insurance agent
M-F: 8am - 10pm ET
Sat-Sun: 9am - 6pm ET
Sat-Sun: 9am - 6pm ET
Final expense insurance is a type of guaranteed life insurance that tends to be a much smaller death benefit than other whole life policies. It's also sometimes known as simplified issue whole life insurance, which is very similar to burial insurance or funeral insurance policies.
Final expense insurance policies tend to be easier to qualify for than other whole life insurance policies. It's designed to cover various aspects of care at the end of life including certain medical costs associated with the end of life, burial costs and funeral services. It's easier to pay into than most whole life insurance plans because the premiums are lower, and the death benefit tends to be a smaller lump-sum payment.
Medical costs that go into palliative care and managing chronic conditions towards the end of life can be very expensive. After passing away, funeral services can cost around $8,000-$10,000, and burial costs can add to the expenses.
These costs are often passed on to the families and loved ones of the deceased person, so buying end of life, funeral or burial insurance policies can help cut down on those costs that come at such a difficult time. Final expense life insurance tends to be popular with older adults who don’t want to pay into an expensive life insurance plan for many years but still want some payout to go to their loved ones at the time of their passing.
Most life insurance policies will pay direct cash to the beneficiaries of the person who has passed away. In some cases this money will cover end of life costs, but some people choose to supplement life insurance with end of life insurance so that the benefits will go farther.
Final expenses are actually not any different than whole life insurance policies in terms of how they work, but they’re cheaper, easier to qualify for, and offer smaller payouts. They’re guaranteed life insurance benefits, meaning as long as premiums are paid on time, almost anyone can qualify.
Yes, like other whole life insurance policies, the death benefit is guaranteed, as long as you have paid all your premiums on time. If you allow your payments to lapse, however, you may no longer be able to get your death benefit. Final Expense life insurance plans tend to have lower monthly premiums that make them easier to pay than many other life insurance plans, so they tend to be popular with people who are looking for a cheaper way to get some of the end of life expenses met for their family members and loved ones.
Final Expense Life Insurance plans tend to be more affordable and easier to qualify for. Most of these plans are guaranteed life insurance plans, meaning that even someone who is older in age and in poorer health will be likely to be able to qualify. As long as payments are made on time, there will be a payout for family members at the time of death. There are typically no medical exams required for these types of plans, so they tend to be popular with people who are concerned they won’t qualify for other types of life insurance plans.
