Final expense insurance to protect your family.
Final expense insurance is a smaller whole life policy designed to help your loved ones cover funeral costs and other end-of-life expenses. As a result, they do not have to handle those costs alone.
Help for the costs no one plans for.
Final expense insurance, sometimes called burial or funeral insurance, is a type of whole life insurance with a smaller death benefit. Because it focuses on the costs that come at the end of life, it helps cover funeral and burial expenses, medical bills and outstanding debts.
The insurer pays the death benefit to your beneficiary, who can use it as needed. Since the policies are smaller and simpler to obtain, many do not require a medical exam. Instead, approval often depends on a short set of health questions, and some plans have no health questions at all.
How it works, step by step.
Choose a coverage amount
Your agent helps you estimate the amount that would reasonably cover your final expenses. Then you decide whether to include any debts you want to address.
Answer a few questions
Many plans ask a short set of health questions rather than requiring an exam. However, some plans accept applicants without health questions.
Pay level premiums
Premiums generally stay level, so the cost is easy to plan for.
Your family is supported
The insurer pays the death benefit to your beneficiary. Then your beneficiary can use it for funeral costs, bills or whatever they need.
Understanding the types of final expense plans.
Level benefit
A level benefit pays the full death benefit from the start of the policy. However, plans like this usually involve health questions.
Graded benefit
A graded benefit typically pays a reduced amount if the insured dies of natural causes during the first few years, commonly two or three. After that period, the policy pays the full benefit, and it typically covers accidental death in full from the start.
Simplified issue
Simplified issue approves applicants based on a short set of health questions. Therefore, no medical exam is necessary.
Guaranteed issue
Guaranteed issue accepts applicants without health questions, within the carrier’s age and eligibility rules. However, these plans typically have a graded benefit and lower maximum coverage amounts.
Who it’s for, and who it may not suit.
Often a good fit
- Protecting your family from funeral and burial costs is your goal.
- A smaller policy with a premium that fits a fixed income appeals to you.
- A simple application process matters, because you want to avoid long underwriting.
- Health conditions may make traditional coverage harder to obtain, so a simplified plan helps.
- Leaving something behind for medical bills or debts is important to you.
May not be the best fit
- Replacing income requires a large death benefit, so term or traditional whole life suits you better.
- Substantial cash value is what you want, but final expense policies build only a small amount.
- Being young and healthy means you may qualify for more economical coverage options.
What carriers look at for final expense.
Final expense plans aim to be accessible, but the details vary by carrier.
Age
Carriers generally issue these plans to older adults. However, minimum and maximum issue ages vary by carrier and plan.
Health questions
Simplified issue plans ask a short set of health questions. In contrast, guaranteed issue plans ask none, and they typically include a graded benefit.
Tobacco use
Tobacco and nicotine use usually raise the premium.
Coverage amount and state
Available face amounts and plans depend on the carrier and your state. Therefore, your agent checks your state first.
Final expense questions, answered.
Do I need a medical exam?
Most final expense policies do not require a medical exam. Instead, many ask a short set of health questions, while guaranteed issue plans ask none.
What is a graded benefit?
A graded benefit pays a reduced amount if the insured passes away from natural causes in the first few years, commonly two or three. After that period, the policy pays the full benefit. Typically, it covers accidental death in full from the start.
Will my premium go up over time?
Final expense policies are whole life policies, so premiums generally stay level for life, as the contract states.
Does the money have to pay for the funeral?
No, because your beneficiary can use the death benefit for funeral costs, medical bills, debts or anything else.
How much coverage should I get?
It depends on the costs you want to cover and the premium that fits your budget. Your agent can help you estimate a reasonable amount, so you do not overpay or under-insure.
Final expense insurance is whole life insurance with smaller face amounts. Graded and guaranteed issue plans may pay a reduced benefit during an initial period. Products, benefits, ages and availability vary by carrier and state, and underwriting applies. Guarantees depend on the claims-paying ability of the issuing insurance company.
Whole Life Insurance
Permanent coverage with level premiums, while cash value grows at a guaranteed rate.
Learn moreTerm Life Insurance
Protection for a set number of years, while premiums stay level.
Learn moreVeteran Life Insurance
Whole life and final expense options, so veterans can find coverage that lasts.
Learn moreMake sure your family is covered.
Speak with a licensed agent by phone, or request your free quote online. Your dedicated agent will then walk you through your options.