What does final expense insurance pay for?

Final expense insurance can pay for end-of-life expenses such as cremation, funeral services, burial, or medical, credit card bills, and other final expenses. The beneficiary has the discretion to use the funds for any purpose.

Why are rates different for life insurance?

Insurers have different rates because people are not all the same and need different amounts or types of coverage, too. Insurers also consider factors such as age, weight, health conditions, and lifestyle so that those with lower risks don’t pay as much for premiums as higher-risk individuals.

Why do I need final expense insurance if I have group life insurance?

Group life insurance is coverage provided by a company or association that you belong to. The insured amount from group life insurance is usually not sufficient to replace income or settle final expenses.

Further, when you cease to be a member- quit, retire, or terminated, you lose coverage.  For these reasons, many individuals decide to get a personal life insurance policy that will be available to their beneficiaries when they pass.

If you still qualify for standard insurance coverage, you can buy a small policy to cover your final expenses. If you are older or a senior, you also have the choice of buying final expense insurance or no medical life insurance. They will not expire and will be active regardless of your age at death.

How does funeral insurance work?

Funeral insurance or final expense insurance works like life insurance – death benefits are paid to a beneficiary once a claim is approved by the insurer. The application process is faster and easier but the insured amount is much lower.

What is the maximum age to get final expense insurance?

It varies among insurers but generally 70 to 80. The higher the age, the more expensive the premiums.

Are death benefits immediately paid out after the insured dies?

Each insurer has a claims process. Most insurers have a processing time in weeks. There are a few companies that boast 24-hour processing for final expense insurance benefits. It is best to check with the insurer to be sure.

How much does final expense insurance cost?

It is difficult to say for certain what the cost of your premium will be without knowing specifics such as age and gender. However, if your health is not a high risk, you can expect to pay from $30 to $70 monthly for a policy with $10,000 in coverage.

What features can be found in a final expense insurance policy?

Not all policies are the same and insurers may offer unique features. All of them have one thing in common – a guaranteed death benefit for your loved ones. Others may offer funeral planning assistance, accidental death and dismemberment, or child riders. It is important to read the fine print of the policy and review the terms and conditions.

Does a final expense insurance policy expire?

No, final expense insurance coverage is like permanent life insurance; it does not expire. As long as premiums are paid and up to date, death benefits are paid to beneficiaries regardless of when death occurs as long as it is not within the waiting period.

Is final expense insurance the same as life insurance?

Yes and no. They both provide cash benefits which can be used to pay for expenses after death. However, standard life insurance has higher benefits because it is meant to replace income. Final expense insurance has lower insured amounts because they are obtained usually by seniors to pay for funeral or burial expenses.

What final expenses should you plan for?

Most seniors include medical bills, funeral or burial costs, and other small loans or bills when planning to buy final expense insurance. The average insured amount is from $10,000 to $25,000.