We have provided a lot of relevant information regarding life insurance and final expense insurance in this article.

However, we know that choosing the right policy and insurer can be overwhelming. You may still have questions so we have compiled a few relevant FAQs that can guide you in your choice.

Can smokers qualify for life insurance?

Yes, smokers can get life insurance but they usually pay as much as 30% more in premiums. Insurers usually set 2 tiers for premiums – smoker’s rate and non-smoker’s rate for both men and women.

Why are final expense insurance policies more expensive than traditional life insurance?

Final expense insurance is more expensive than traditional life insurance because it is designed for hard-to-insure individuals who won’t normally qualify for regular life insurance. The risks for insurers are higher, and some policies (the most expensive ones) don’t require a medical exam.

Most people who apply for final expense insurance are seniors with medical conditions.

Should I get term life insurance or final expense insurance?

If you can still qualify for standard term life insurance, it is the cheaper alternative. You may also qualify for a higher insured amount.

For individuals 60 years or older and don’t get approved for standard life insurance policies, the next best option is final expense insurance. Speak to a broker and get your best options before making your decision. You can get in touch with reliable brokers using our short online form.

What is the maximum age to get final expense insurance?

Different insurers have their own age requirements, with some capping the age at 75 while others accept up to 80. Keep in mind that the older the insured, the more expensive the premiums are.

How does final expense insurance work?

Final expense insurance pays out death benefits to the beneficiary, tax-free. The benefits are not paid immediately after death so in most cases, family members may have to advance the payment for funeral costs and get reimbursed.

Can I buy final expense insurance for my parents?

Yes, it is always possible to buy final expense insurance for a relative like a parent or a grandparent.

How much is the recommended insurance amount for life insurance?

There is no one-size-fits-all answer for life insurance because each individual has a different set of circumstances in life. You will need to determine the right level of coverage for yourself by assessing the purpose of your insurance, your financial status, and future goals. An easy way to do this is to ask yourself how much money you need to leave to your dependents, pay off your debts, and cover your funeral costs in case you die.

Can I still get denied final expense insurance?

Most individuals can still get final expense insurance despite existing health conditions. However, you can still get denied coverage if you are over the age requirements of the insurance company or don’t meet some requirements. For instance, seniors in hospice care or in long-term care cannot get coverage.

Is it advisable to get guaranteed final expense insurance?

Guaranteed final expense insurance is the most expensive type of insurance available for seniors. It is available for those who don’t have any other option to get coverage. Some seniors get this type of policy when they want to leave a small legacy to a beneficiary or want funds set aside for funeral expenses. It is advisable if the applicant does not qualify for standard life insurance but want a lower amount of insurance ($25,000 or less).

Do I still need life insurance if I am single?

It may seem like you don’t need life insurance if you are single. This can be true if you have no debts to leave behind and no dependents to worry about. There is still that question about paying for your funeral. If you have company insurance and savings that would be sufficient if you were to die suddenly, you probably don’t need additional coverage. Keep in mind, however, that company insurance (group insurance) ends when you leave your employment. You may also decide to get married and have kids in the future by which time your insurance premiums will be higher.

What is the difference between life insurance and final expense insurance?

Standard life insurance policies offer higher insured amounts because they are designed to replace income. They also cost less compared to final expense insurance for the same amount. Final expense insurance policies are designed to pay for funeral and other end-of-life expenses and offer low insured amounts. They are intended for individuals who don’t qualify for standard life insurance.

Is funeral and burial insurance the same as final expense insurance?

Yes, funeral, burial, and final expense insurance policies are the same. They are called different names by the insurance companies who sell them. Depending on the insurer, each policy can have different pricing and features.

How fast do insurance companies pay out claims?

This depends on the insurer as they have their own procedures for claims. It also depends on the circumstances of the claim. For instance, if the insured did not die of natural causes, the payout may be delayed until such time that an investigation is satisfactorily concluded. Most insurers don’t pay death benefits for suicides. If everything is cut and dried, death benefits can be paid within days. For some insurers, it could take weeks or months.