Final Expense Insurance
Overview
Final expense insurance, also known as burial insurance or funeral insurance, is a type of whole life insurance designed to cover end-of-life expenses. This policy provides a small death benefit intended to cover costs such as funeral services, burial or cremation, and other related expenses. It is typically easier to qualify for than traditional life insurance and is often marketed to older individuals.
Key Features
Small Death Benefit: Provides a death benefit typically ranging from $2,000 to $35,0002.
Whole Life Policy: Offers lifelong coverage as long as premiums are paid, with fixed premiums that do not increase over time.
Cash Value Accumulation: Accumulates cash value over time, which can be borrowed against or withdrawn by the policyholder.
Simplified Underwriting: Often does not require a medical exam, making it easier to qualify for, especially for those with health issues.
What Final Expense Insurance Covers
Funeral and Burial Costs: Covers expenses related to funeral services, burial, or cremation.
Medical Bills: Can be used to pay for final medical expenses not covered by health insurance.
Outstanding Debts: Helps pay off any remaining debts, such as credit card bills or personal loans.
Other End-of-Life Expenses: Can be used for any other expenses the beneficiaries deem necessary, providing financial relief during a difficult time2.
Exceptions and Exclusions
Non-Payment of Premiums: The policy will lapse if premiums are not paid, resulting in the loss of coverage.
Suicide Clause: Most policies include a suicide clause, which excludes coverage if the insured dies by suicide within a specified period, typically the first two years of the policy.
Misrepresentation: Coverage may be denied if the policyholder provides false or misleading information on the application.
Factors Affecting Premiums
Age: Older individuals typically pay higher premiums.
Health: While medical exams are often not required, health status can still impact premiums.
Gender: Women often pay less than men due to longer life expectancy.
Coverage Amount: Higher coverage amounts result in higher premiums.
Policy Features: Additional features, such as riders, can increase premiums.
How to Get a Quote
To get a final expense insurance quote, visit our general insurance quote form or use our online chat option for personalized assistance.
Tips to Save Money
Compare Quotes: Shop around and compare quotes from multiple insurers to find the best rates.
Buy Sooner: Premiums are generally lower when you purchase at a younger age.
Maintain a Healthy Lifestyle: Improving your health can lead to lower premiums.
Avoid Smoking: Quitting smoking can significantly reduce your premiums.
Evaluate Policy Features: Consider the necessity of additional features and riders to manage costs.