Final Expense

Final expense insurance, also known as burial insurance or funeral insurance, is a type of whole life insurance designed specifically to cover end-of-life expenses. It is typically intended for older adults who want to ensure their loved ones aren’t burdened with the costs associated with their passing.

Key Features:

1. Purpose:
   Final expense insurance is primarily used to pay for funeral services, burial or cremation costs, medical bills, and other debts left behind after death. It ensures a dignified farewell without placing financial stress on the family.

2. Coverage Amount:
   The coverage amounts are generally lower than traditional life insurance, usually ranging from $2,000 to $50,000. This is because the policy is focused on final costs rather than long-term financial support.

3. Eligibility:
   It is often available to individuals aged 50 to 85, and many policies do not require a medical exam — just a health questionnaire. This makes it accessible to those who may not qualify for standard life insurance due to health conditions.

4. Premiums:
   Premiums are typically fixed and paid monthly or annually. Once the policy is in place, premiums do not increase, and coverage does not decrease as long as payments are made.

5. Payout:
   Upon the policyholder’s death, the beneficiary receives the death benefit, which can be used for any purpose — though it’s usually intended for final expenses.

6. Types of Policies:

   • Guaranteed Issue: No health questions or medical exams; higher premiums and a waiting period.

   • Simplified Issue: Requires answering a few health questions; faster approval and lower premiums than guaranteed issue.

Benefits:

• Provides peace of mind by covering funeral and burial costs.

• Easy to qualify for, even with health issues.

• Helps loved ones avoid financial strain during an emotional time.

Who Should Consider It?

Final expense insurance is ideal for seniors who want a simple, affordable way to ensure their end-of-life costs are covered. It’s also suitable for individuals who don’t have other life insurance or whose term policies have expired.