2021 Guide To Final Expense

Final expense insurance plans are small coverage plans meant to cover your funeral, burial, or cremation expenses. They will pay out usually within 48 hours to your beneficiary, so that your loved ones won’t be on the hook for any expenses, which can be substantial.

When looking to select a final expense insurance company make sure to consider all of the following important factors…

  • Will your monthly payment ever change?
  • Will your benefit ever decrease?
  • Is this company reputable?
  • Is this the cheapest rate available for my health and age?

All of these are important questions that many agents won’t give you the answer to. Make sure to read on to the answers to these questions to make sure you know what you’re getting yourself into.

Key Features Of All Final Expense Burial Plans

Final expense burial plans are very simple compared to traditional life insurance. Every final expense plan we offer will have…

  • Locked in rates and coverage for life
  • Your coverage can never be cancelled by the insurance company. No matter what.
  • The payout to your loved ones is 100% tax free!

As with most other types of life insurance, there are no restrictions on how the money can be spent. It is up to your beneficiary to use the cash payment to fulfill your final wishes and make sure they don’t have any financial burden.

Burial Plan Cost

Of course, the cost of each final expense burial plan will depend on your age and health. The good news is, we can find you the cheapest rates available!

Fill out the quoter on the right to find a good estimate as to your monthly payment, but only a conversation with us will give you the exact rate the each company will offer you.

Furthermore, with every company, there is no cost to lock in your rate and complete the application. You can sign the application today and usually pay up 30 days in advance, or cancel any time before then. But you will at least have your rate locked in before you get older or develop a medical condition, both of which will increase your rates substantially.

3 Types Of Final Expense Burial Insurance

Every final expense burial plan can be basically broken up into three groups.

Immediate Level Coverage

Almost every insurance company out there offers immediate level coverage with no waiting periods, but you must qualify, and not everyone will qualify for immediate coverage.

While most people qualify for immediate level coverage, there are a few medical conditions that will immediately knock you out from coverage with no waiting period.

  • Major surgery in the past 1-2 years
  • Current cancer
  • Dialysis
  • Some type of terminal illness
  • AIDS/HIV

Just to name a few…

This is not an exhaustive list, and will depend on the dosage and type of prescription medication you are taking as well. The only way to make sure you are qualified for immediate level coverage with a carrier is to talk with an agent.

Fortunately, there are plenty of insurance companies out there that will offer you a no waiting period policy with lenient underwriting.

Graded Coverage

Graded coverage is a type of “in-between” coverage. These types of policies are for people with semi-severe health conditions that do not qualify for immediate day one coverage with any carrier.

They are called graded policies because they death benefit is paid out in a graded format over a few years.

For example, most graded policies look something like a payout of 30% of the death benefit the first year, 70% the second year, and then full payout of death benefit after two years. But not every company is the same.

They are also a little more expensive than level coverage, due to being higher risk.

We at Seniors Mutual can get immediate level day one coverage for most people but not all. And we highly recommend going with level coverage if you qualify for it.

However, if you can’t qualify, a graded policy will be your best bet to get final expense life insurance.

Guaranteed Issue

Guaranteed issue policies ask no health questions, but have a two year waiting period before you can receive the full death benefit.

Most guaranteed issue policies will only give your beneficiary the premiums you’ve paid so far with 5-10% interest back. They are also the most expensive final expense burial insurance.

However, for some people, like those who have cancer or are on dialysis, this is your only option.

The good news is you still have options. There are a few companies to compare prices from to make sure you are getting the best price.

Let us be clear, we do not recommend guaranteed issue for anyone if they can help it. It is more expensive, and the waiting period offers you no death benefit.

However, if these are the only plans you qualify for then we can find the best priced guaranteed issue carrier for you.

The last thing we will say about guaranteed issue is that some companies and websites advertise no health questions, immediate day one coverage policies.

THOSE ARE ALL A LIE.

Absolutely no insurance carrier asks no health questions AND offers immediate coverage. Guaranteed issue policies ask no health questions, but that comes at a higher payment every month and a waiting period.

Don’t buy into or click on the ads for policies tricking you into something that isn’t true.

Speak with us today and we will see what coverage you qualify for.

Not Traditional Life Insurance

Most people think final expense burial insurance is just like traditional life insurance.

Yes and no.

Final expense insurance is life insurance, but it operates a little differently from traditional life insurance.

Favorable Underwriting

The underwriting for final expense burial insurance is very lenient compared to traditional life insurance because it is made for older people that tend to have more health conditions.

Rate Locked

All burial plans are rate locked. This means your payments never go up and coverage can never decrease. This is not the case for all types of traditional life insurance. Final expense burial plans are designed for people on fixed incomes in their later years.

No Physical Exams

Final expense insurance does not require an exam like most other types of insurance. In fact, all you have to do is answer a few health questions and you’ll most likely be approved in a matter of minutes!

Quick Approval Times

Traditional life insurance can take weeks, even months to get approved and issued a policy. Not the case with final expense insurance. Many cases are decided by the insurance carrier over the phone and you get an instant decision on which policy you qualify for.

Guaranteed Issue

Final expense insurance does come with some policies that are guaranteed issue. While we don’t recommend this if you can help it, this may be your only option. If you can’t get coverage through traditional means, final expense guaranteed issue may be your only option.

How do I apply?

Applying to get issued coverage comes at no cost to you today.

Insurance companies let you sync your payments with the day you receive your social security deposit OR up to 30-45 days in advance, depending on the carrier. Whichever you choose is up to you.

Either way, locking in your rate and starting the underwriting process comes at no cost and will give you the peace of mind that your policy is in the door officially.

The whole process for most carriers takes no more than 10-15 minutes, and the fastest way to do so is with speaking with an agent who will find you the carrier that offers you the best rates. Fill out the form on the right and we will be in touch with you.