FINAL EXPENSE LIFE INSURANCE
With the average funeral costing $10,000 or more, a final expense insurance policy is a type of life insurance that can help minimize financial stress for your family during a difficult time. Let your family focus on what’s important with final expense coverage.
FINAL EXPENSE LIFE INSURANCE
The average funeral today costs $10,000 or more. These and other end-of-life costs are often overwhelming to families after losing a loved one. A final expense insurance policy can help minimize that stress. Instead of having to drain their savings, your family can have the comfort of knowing there’s a plan in place after your death.
Also sometimes called burial insurance or funeral insurance, final expense insurance can help cover costs like medical bills or even credit card debt, or add to any other life insurance coverage you may already have.
With quick approval times and no required medical exam, final expense life insurance is a simple way to add important protection for your family. In many cases, coverage is available even if you have a pre-existing health condition. If you’re between the ages of 50 and 85, final expense insurance can offer tax-free protection and peace of mind to the people you love most.
An affordable, convenient option for many families.
End of life insurance can be an ideal fit if you’re over 50, have health problems, or live on a fixed income, which can make it hard to qualify for a standard life insurance policy. With final expense insurance, you’ll benefit from:
Most insurance companies require you to take a medical exam to help determine your life insurance rates. But with final expense and burial insurance, that isn’t necessary. You still may need to answer some basic health questions to apply.
Because of the relatively low coverage, usually $5,000 to $40,000, final expense insurance premiums are relatively inexpensive. You can even buy this plan to supplement your existing life insurance policy, helping to give your family extra financial support if they need it.
Since you typically just need to take a short health survey instead of a full medical exam to get consent for coverage, approval can take just hours or days, instead of weeks.
Final expense is a type of permanent insurance, which means it will last for the rest of your life once you buy it. The application process is quicker than many other types of insurance, since it doesn’t require a medical exam. Wondering how to get final expense life insurance? Here’s how the process works:
With eFinancial, you’ll have access to final expense insurance plans from top companies. Our agents can guide you through the process of choosing which life insurance company and coverage is best for you. We look forward to helping you and your family.
Final expense insurance is designed to pay for costs at the end of your life. That can include funeral or burial expenses, medical bills or even credit card debt. Since the average funeral costs $10,000 or more, final expense insurance can help you protect your family from the financial stress of these costs.
Final expense insurance coverage amounts are much lower than typical life insurance coverage, ranging from about $5,000 to $40,000. That means final expense insurance is one of the most affordable types of coverage out there. Some carriers guarantee your monthly premiums will never go up, which is especially helpful if you live on a fixed income. Final expense insurance also doesn’t require a medical exam, so even people who have had health issues can often get covered.
Life insurance riders are features you can add to a life insurance policy to customize your coverage even more. With final expense insurance, one of the most important rider options is a living benefit rider. If you meet certain qualifications, these riders allow you to use money from your death benefit to help with expenses while you’re still alive.
It depends on your situation. In addition to covering funeral costs, you’ll probably want enough coverage to take care of any credit card debt or other unpaid bills. Many people also want to cover their family’s household expenses for a few months after they pass away. Finally, you should take inflation into account. For a more accurate estimate and to get a final expense insurance quote, give our team at eFinancial a call.
Yes, it’s possible to use final expense insurance as burial insurance for seniors, funeral insurance for parents or to cover funeral costs for others who may need it. You can also name a funeral home as the primary beneficiary and list a loved one as a second beneficiary, who will receive any money that’s left over after the funeral has been paid for. It’s important to confirm with the funeral home that it accepts final expense life insurance for seniors as a form of payment.
Yes, it’s possible as long as you meet certain requirements. It might be scary or uncomfortable, but talking to your parents about final expense insurance can help everyone feel better about what’s to come later. Start by having a conversation with your parents about any critical aging issues and what they want in terms of final arrangements, ideally by the time they’re 70. Ask them questions about what kind of funeral they want, whether they would like to be cremated or buried, and what kind of final expense insurance they might already have in place.
Depending on what they want, it’s important that they have enough insurance to cover the maximum expected funeral costs, as well as any other expenses, including medical bills. If you do decide to purchase final expense insurance for your parents, you will need their consent, their Social Security numbers, and a few other personal details. Learn more about buying final expense insurance for a parent here.
In general, a final expense death benefit is tax-exempt. If the policy owner is a person different from the beneficiary, though, the IRS might consider the death benefit a taxable gift. Our eFinancial agents can help you understand the specifics of your individual plan. You should also consult with your tax advisor for any specific tax concerns.
Pre-need insurance plans – also referred to as pre-need burial insurance or prepaid insurance – are typically offered by funeral homes to pay for your funeral service. They allow you to design your entire funeral service yourself while also handling payment at the same time. The downside of these burial insurance plans is that you can’t use the money you pay in premiums for anything else, and you generally are locked into a specific funeral provider.
Using your savings is certainly an option. Since many people have unexpected medical costs or other unexpected expenses later in life, though, final expense insurance can give you the assurance that your family will have enough to cover these costs.
Relying on your will can be tough for your loved ones, since a will is typically read after the funeral and it can take months after that for the will to be settled fully. The Social Security life insurance benefit is only $255, far less than the average cost of a funeral.
Every few years or after a big life change, it’s a great idea to review your final expense insurance policy. You want to be sure that your personal details, like your address and billing information, are up to date. You also want to be sure that your policy reflects your current family and financial situation. Getting married or divorced, buying a home or changing jobs are all smart times to connect with an eFinancial agent about your coverage and needs.
