Life can spring unexpected surprises but there are things we can plan for. As the old saying goes, the only things certain in life are death and taxes.
It makes financial sense to plan for final expenses so that our loved ones won’t be burdened with funeral expense, taxes, etc. when we pass.
Funeral expenses in Ottawa cost thousands of dollars. By putting aside funds to pay for end-of-expenses, family members can have time to mourn our loss without worrying about expenses.
Do you have insurance coverage to pay for final expenses? If your life insurance policy is not enough or you don’t qualify for standard life insurance coverage, the ideal solution is final expense insurance.
We have licensed and experienced insurance partners in our network who will be happy to help you find the best coverage for your needs!
To find out the cost and benefits of final expense insurance, read on or fill out the form on this page to get FREE and NO OBLIGATION quotes!
Final expense insurance works like permanent life insurance coverage because it remains valid throughout your life as long as premiums are up-to-date.
Unlike term life insurance which has a specified coverage period, a final expense insurance policy is valid throughout your life. You will never need to renew it and premiums stay level forever.
Final expense insurance is also called burial insurance or funeral insurance because the benefits are designed to pay for these expenses. For this reason, this type of policy is very popular among seniors.
There are several insurers offering final expense insurance and most of them offer these features:
Unlike traditional life insurance, a medical exam is not usually required to get final expense insurance coverage. For guaranteed issue life insurance, approval is fast but the approved insured amount is much lower and the premiums are the most expensive in the market.
You can also choose a simplified issue life insurance where you don’t take a medical examination but you have to answer a short health questionnaire. The premiums are a little lower than no medical exam life insurance.
Research shows that many Canadians have not prepared enough funds to pay for their own funeral which, on average, can cost $10,000 or more.
While it can seem strange or morbid to plan for a funeral in advance, it makes sense if you don’t want to leave a huge financial burden on your family.
Final expense insurance is a tool you can use to set aside money to cover the cost of your final expenses. It is very attractive to seniors and older individuals who don’t qualify for standard life insurance coverage because of health reasons.
Because final expense insurance is easier to buy and does not require a medical exam, even seniors with medical conditions can get approved.
While the cost of the premiums is undeniably higher than standard term life or permanent life insurance, it is a last resort for hard to insure individuals.
In short, final expense insurance is designed for seniors and older adults with health issues but need a minimum amount of coverage to pay for final expenses.
Most insurers who offer final expense insurance or no medical exam life insurance accept individuals aged 18 to 70. Depending on your age and other factors you can qualify for benefits of $20,000 or higher.
The decision to purchase life insurance is yours to make. While it is a very important financial planning tool, most people are uninterested in talking about it.
Life insurance remains to be a very important part of planning for the future and your financial security. How do you determine whether you need final expense insurance? You may be thinking that you already have group life insurance so why bother?
You need to carefully consider how much life insurance benefits your dependents or loved ones will get when you pass. Do you wish for them to receive the money as a gift, to pay your mortgage, taxes, or debts? Will the funds be enough to pay for it all?
Tax-free benefits to pay for expenses
Final expense insurance is paid tax-free to any beneficiary you choose. This means you can arrange with your family members how to use the cash benefits after you die.
If you are counting on group life insurance, remember, too, that coverage will cease when you retire or quit your job.
If you already have sufficient money in the bank, substantial life insurance coverage, and other investments, you may not need final expense insurance.
But if you want to set aside money specifically for funeral expenses or to augment the insurance benefits for your beneficiary, buying final expense insurance can be a good way to do it.
It can cover funeral expenses, credit card bills, medical bills, or other costs arising from death. In this way, their financial future is not compromised and you have peace of mind that your affairs will be put in order.
Did you know that the cost of funerals in Ontario have been rising year by year? On average, the price of a traditional funeral is from $8,000 to $20,000. On the other hand, cremations are relatively cheaper, with prices at $5,000 or less. When the time comes, where will your family get the money to pay for it?
The government pays very little for funeral assistance. As of 2019, the death benefit for qualified contributors of the Canada Pension Plan is a flat rate of $2,500.
Costs to consider when you buy final expense insurance
Funeral expenses are varied. Below you will see a short overview to give you an idea of what to consider when buying final expense insurance.
Of course, these amounts could differ depending on the arrangements chosen by you or your family members. It is much like buying a house or a car wherein the cost will depend on the model, size, and features you prefer.
Death registration ($55) and certificate ($15-$22)
Each death has to be registered before a death certificate is issued. This document is necessary to apply for benefits, file an insurance claim, and to release the estate.
Transport of the body ($100 or more)
The fee depends on the number of times a body needs to be moved and how far.
Casket, shroud, or urn
There are many styles and prices to choose from. The price can be $500 to $3,000.
Body Preparation ($150 to $500)
Preparing the body includes bathing and grooming as well as applying make-up and dressing.
Memorial, visitation, funeral ($2,000 or more)
In funeral homes, there are many types of services to choose for a funeral. The more elaborate the ceremonies, the higher the cost.
Burial plot/niche ($1,000 or more)
Single plots, side-by-side plots, or family plots are often expensive.
Burial or cremation services ($1,000 to $10,000 up)
Many people choose cremation because of its simplicity and affordability. In Ottawa, a typical burial service includes a visitation service, church services, earth burial or above-ground burial.
A direct burial or cremation without any services can cost about $1,000. Grave space, opening and closing of the grave, and a marker could cost another $2,000. The total cost for a funeral and burial also depends on the quality of the burial vault, casket, and liner, easily going as high as $10,000.
Now that you have an idea of how much you may need for life insurance, let’s take a look at what types of life insurance seniors can qualify to get.
Because of advanced age, many seniors immediately think of guaranteed issue life insurance to avoid a denial or taking a medical exam.
In truth, some seniors can qualify for cheaper coverage with higher insurance amounts.
When it comes to final expense insurance for seniors, you can look at 3 types:
Standard Life Insurance
Simplified Issue Life Insurance
Guaranteed Issue Life Insurance
|Maximum coverage||$3,000,000 or more||$300,000 or less||$25,000|
|Requirements||Medical exam||3-12 health questions||None|
|Medical conditions||Few, not serious||Many pre-conditions allowed||All pre-conditions qualify|
|Price||Cheapest||Higher premiums than standard life insurance||Most expensive|
|Payout||Direct to beneficiary||Direct to beneficiary||Direct to beneficiary|
|Waiting Period||Depends on type of policy and insurer, some policies have no waiting period while others have 1 to 2 years||With or without 2 years waiting period, depending on health status and insurer||2 year waiting period, no benefits paid if insured dies within the first 2 years, full return of premiums|
The cost of final expense insurance for seniors depends on the type of policy and other factors. We want to give you an idea of the prices you will find in the market. Hence, we have put together a few examples for you to compare.
Please note that these are just approximations and actual prices can vary across different insurance companies.
It is advisable for seniors to talk to a broker when buying final expense insurance. Unlike agents, a broker is able to shop around for the best product for you and get lower rates. While agents only sell life insurance products from one insurer, a broker has access to multiple insurance companies. Brokers’ services are also free for you!
We have many insurance brokers in our network who can find the best final expense insurance on your behalf!
Don’t worry; these quotes are free of charge and no obligation. Just fill out the form on this page to receive the best final expense insurance quotes tailored to your needs.
Are you looking for no medical life insurance for seniors? Our experienced partners are the best source of no medical life insurance for individuals aged 20 and up. Some insurers accept up to age 75 or 80.
During this time of COVID-19, no medical life insurance is a popular choice because you don’t need to have a physical or in-person application and health check. Everything is done remotely and conveniently for your safety and peace of mind.
Seniors in Ottawa can take advantage of the best prices and products for life insurance for seniors from a wide variety of insurance providers.
No-medical life insurance can pay for all final expenses so you can plan and settle your affairs and ease the financial burden on your loved ones.
Smart seniors plan for allocating funds for medical bills, legal fees, taxes, and funeral expenses. The 2 options most popular in the market are funeral plans and final expense insurance.
What is a funeral plan?
A funeral plan means pre-paying for funeral arrangements over time rather than a lump-sum payment at death.
It covers any and all funeral arrangements you choose – casket or urn, plot, ceremony, flowers, music, visitation, burial, cremation, etc. It allows you to personally choose what you want from an array of products and services provided by a funeral home.
The funeral plan is fixed in price, based on the choices you make, and paid in installment over time. When the time comes, your relatives will simply avail of the funeral plan and will have nothing to worry about.
Pros and cons of a funeral plan
For individuals who don’t mind planning their funeral with specific details, this can be a good option. The benefits are tied with a specific funeral home and not transferrable if you move to another location. The payments are made directly to a funeral home and kept in trust.
One of the biggest advantages of a funeral plan is the fixed cost. There is also an end date which means that once the plan is completely paid off, and this can be many years before death, surviving family members will not have to pay or worry about anything else regarding the funeral services.
Of course, not everyone wants to plan their own funeral. Others also want a little more flexibility. In this instance, a final expense insurance policy may be a better alternative.
Pros and cons of final expense insurance
With a final expense insurance policy, your beneficiary receives a lump sum that can be used to pay for anything. You can make arrangements about how the money is to be paid or leave it to the discretion of your loved one. It works pretty much like a standard life insurance policy but is cheaper and has a smaller insurance benefit.
Both funeral plans and final expense insurance can pay for funeral costs in the event of your death. Final expense insurance may provide a smaller cash benefit and is paid directly to your beneficiary. The funds can be used in any way and is left to the discretion of the beneficiary. Thus, it is more flexible than a funeral plan.
However, the payout of a final expense insurance policy is not immediate at death. Your family will submit the death certificate to the insurer and the length of time for a payout can vary from one insurer to another. Thus, the proceeds cannot immediately be used to pay for a funeral and loved ones may have to advance the funds and get reimbursed from the insurance proceeds.
To enable you to make the best decision, we invite you to compare and choose the best final expense insurance coverage with FREE and NO OBLIGATION quotes!
When you fill out the form below, you are connected to a network of reliable brokers and insurers in Ottawa who will be happy to submit competitive offers tailored to your budget.
We don’t disclose your information to other parties other than our partners who will be submitting bids for your coverage. Confidentiality is guaranteed and you are under no obligation to buy unless you are completely satisfied with the offer.
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Don’t delay because the price of your life insurance increases as time goes by.
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