Final expense insurance is life insurance with one primary purpose: to cover your final expenses. Final expenses could be anything ranging from a funeral, to paying off secured debt, to wrapping up your estate. The key with final expense insurance is that it provides your family and friends with the money needed to cover your final expenses when you die. We work with the best final expense insurance companies.
Final Expense Insurance
The alternative to final expense insurance is to raise money through liquidation of your assets, charity, or forcing your family and friends to cover you final costs.
This is why it is so important to have final expense insurance, so that you do not leave the burden to those whom you love.
What is final expense insurance?
Final Expense Insurance DEFINITION: cash value whole life insurance taken out on the life of the insured with the sole purpose of paying off any final expenses. These expenses may be debt, bills, funeral costs, or simply the desire to leave a little something behind to help friends or family get through the next few months or year.
Why final expense insurance is important
Too often a loved one passes away with little or nothing in the bank and with debt and bills left to pay. Family and friends are forced to make very difficult decisions. Should we pay down debt, pay the bills, or have a funeral? How can we afford to do any of these, let alone all? Should we cremate his or her remains? And so it goes.
When your time has come and you depart from this world, know that you can leave something behind so your friends and family do not have to make painful decisions such as these. Instead, family and friends can focus on who you were, what you meant to them, and wishing you farewell as you enter the next life.
A huge benefit to final expense insurance is your loved ones can use the proceeds from your insurance to give you a proper send off and grieve without having to worry about paying bills and coming up with money to cover everything. Unlike burial insurance policies where the focus is simply on paying for your burial, final expense insurance focuses on burial and additional debt and expenses.
Having a plan in place will help your loved ones celebrate your life instead of focus on the additional loss brought about by your death. It is a wonderful tool to use to plan for that inevitable day. Unfortunately, all too often people fail to plan.
Who needs final expense insurance?
Anyone who does not have $15,000 in the bank needs final expense insurance. Why $15,000? As of 2015 the average funeral will cost about $9,000. Add onto that figure any outstanding debt or bills and $15,000 makes a lot of sense.
Who can qualify for final expense insurance?
All United States citizens ages 45-80 regardless of any health issues can qualify for some type of final expense insurance.
What type of insurance is best for final expense?
Final expense insurance is for paying off any final expenses. In other words, it is used by friends and family to pay off and pay for any expenses that exist or are created upon your death. Therefore, getting a permanent policy that lasts the rest of your life is the best choice.
There are three main types of life insurance: term, whole and universal life.
Term life insurance is the cheapest life insurance available. It is a great alternative if you need life insurance for a specific period of time. A great example is a mortgage. Many people will take out a term policy to cover their mortgage. A mortgage is quantifiable. You know you have 25 years left on your mortgage. Therefore, you can tailor your term to match your mortgage. However, when we are talking about final expense insurance, you lack one important piece of information—how long you will live!
That is why whole life or universal life insurance works best for clients looking for final expense insurance. With whole life or universal life the insurance will last until the insured dies. Therefore, there is no need to worry if the term expires because the policy has no end date. When a typical universal or whole life policy ends at age 100 or 121, the policy is worth the face amount. Therefore, even if you outlive the insurance, you will still receive the full death benefit upon your passing.
How much is final expense insurance?
The cost of final expense insurance varies. There are three main categories of insurance available. You will either qualify for fully underwritten, simplified issue, or guaranteed issue life insurance.
Fully underwritten life insurance requires a medical exam. It can be the hardest life insurance to qualify for if an applicant has a past history of health problems. As a result, simplified issue or guaranteed issue might be the better choice.
Simplified issue life insurance simplifies the process by removing the requirement for a medical exam. Instead, the applicant must answer a few questions on his or her health and lifestyle. For many people this is a great option because they are healthy but want to avoid the hassle of a medical exam. It is also a great choice for people who have had health issues but the health problems are now under control. However, for those who are battling lingering health issues there is hope—guaranteed issue life insurance.
Guaranteed issue life insurance is guaranteed acceptance for everyone ages 45-80 who live in the U.S. There are no health questions or exams to take. For anyone who has either been denied life insurance or who has current health problems, this is the product for you. One of the top guaranteed issue life insurance companies is Gerber. You can read more about Gerber’s Guaranteed Issue Plan here.
Final Expense Insurance Sample Guaranteed Issue Quotes
Sample rates are provided from A rated carriers as of October 2014. Rates are subject to change.
50 year old male $15,000 face amount $57 a month
50 year old female $15,000 face amount $41 a month
55 year old male $15,000 face amount $68 a month
55 year old female $15,000 face amount $53 a month
How much final expense insurance can I get?
The amount of coverage you can get depends on several factors. There limit of life insurance you can get with fully underwritten life insurance is determined by a multiple of your income. The more you make the more insurance you can qualify for.
Simplified issue products can go as high as $500,000. However, most simplified issue products cap out around $249,999 for permanent life insurance such as universal life.
Guaranteed issues life insurance typically is offered in increments of $2,000 on the low end to $25,000 on the high end.
How do I find the best final expense insurance?
The key to finding the best, most affordable final expense insurance is choosing a company that can shop for you. You might also want to read up on how to buy final expense insurance. At JustBuryMe we work with dozens top rated life insurance companies and will find you the best company for your specific need and health profile.
JustBuryMe is an insurance agency that focuses entirely on burial and final expense insurance, period!
Our primary goal is to help you secure the coverage necessary so that you can get on with your life with the peace of mind knowing your family will not be left with unnecessary financial hardship due to your advanced planning.
Give us a call today to find out the great burial or final expense plans your qualify for. We are here to serve!