Frequently Asked Questions

What is Final Expense Insurance?

Final expense insurance also known as burial insurance, is a type of life insurance policy that covers end-of-life expenses, including

Funeral arrangements: embalming, casket, flowers, and services

Burial costs: cremation, burial plot, headstone, and interment

Outstanding medical, legal, or credit card bills.

What is a death benefit?

A death benefit is the amount of money paid by your life insurance company to your beneficiaries when you die.

Why Buy Final Expense Insurance?

Final expense insurance is one of the most affordable types of life insurance. It can ensure that your loved ones aren't left with a financial burden, as the average funeral can cost $10,000 or more.

What are the eligibility criteria?

1. Age: Typically 45-85 years old, depending on the plan.

2. Health: Some plans require medical questions or exams, while others guarantee acceptance.

3. Residency: Must be a Unites States resident.

What are the types of Final Expense Insurance?

There are two main types of final expense insurance

Simplified Issue Life Insurance: requires some health questions, but no medical exam.

Guaranteed Issue Life Insurance: no health questions or medical exam, but typically more expensive and with lower coverage amounts

What are simplified issue policies?

Simplified issue policies provide life insurance without a medical exam, but you’ll need to fill out a health questionnaire. There are a few questions that can disqualify you, so if you use a wheelchair, reside in a nursing home, or live with a serious health condition like cancer, diabetes or heart disease, you might be denied coverage. Otherwise, there’s a solid chance you’ll be approved for simplified issue life insurance, even as a senior.

What are guaranteed issue policies?

Guaranteed issue policies skip the medical exam and health questionnaire, and offer coverage with no questions asked. But since the insurers don’t have any information about the person they’re insuring, guaranteed issue life insurance typically costs more to compensate for the extra risk.

What are the Insurance plans’ options?

1. Level Benefit Plan: Provides a level death benefit from day one, with that remain level for the life of the policy.

2. Graded Benefit Plan: Offers a graded death benefit, where the benefit amount increases over time (e.g., 25% in year one, 50% in year two, 100% in year three).

3. Modified Benefit Plan: Provides a modified death benefit, where the benefit amount is reduced for a specified period (e.g., two years) before increasing to the full benefit amount.

4. Guaranteed Issue Plan: Guarantees acceptance, regardless of health status, with a level death benefit and level premiums.

5. Simplified Issue Plan: Offers simplified underwriting, with a few health questions, and a level death benefit and level premiums.

6. Senior Whole Life Plan: A whole life insurance plan designed for seniors, with a level death benefit and level premiums.

7. Term Life Plan: Provides temporary coverage for a specified term (e.g., 10, 20, or 30 years), with a level death benefit and level premiums.

8. Universal Life Plan: A flexible premium plan that combines a death benefit with a savings component.

Please note that specific plan details, including coverage amounts, premiums, and underwriting requirements, may vary depending on the insurance carrier and location

What does final expense insurance cover?

Final expense insurance can help your beneficiaries pay for the costs for your final expenses such as:

Burial plot

Burial vault

Caskets

Cremation

Flowers

Funeral home services

Grave opening and closing

Headstones

Obituary notices

Transportation

Urn services

Final expense insurance can also be used to pay outstanding debts you leave behind after you pass away.

May I buy term life insurance?

It may not be the right solution to buy a term life insurance policy to cover final expenses. It lasts only as long as the policy term, such as 10 or 20 years, and you may live longer than that. Term life insurance is ideal for covering specific financial obligations, like the length of a mortgage, the cost of raising children or the number of years until you plan to retire.

Does Final expense insurance covers medical expenses?

Final expense insurance covers medical expenses related to

1. Hospital stays

2. Doctor visits

3. Prescription medications

4. Surgical procedures

5. Diagnostic tests

6. Ambulance services

7. Hospice care

8. Nursing home care

9. Home health care

Some policies may also cover additional medical expenses, such as

1. Cancer treatment

2. Dialysis

3. Chemotherapy

4. Radiation therapy

5. Physical therapy

6. Occupational therapy

7. Speech therapy

However, the specific medical coverage and extent of coverage can vary significantly between insurance companies and policies.

What are the common exclusions or limitations in final expense insurance?

1. Pre-existing conditions

2. Experimental treatments

3. Elective procedures

4. Cosmetic procedures

5. Mental health treatment

6. Substance abuse treatment It's crucial to review the policy's terms, conditions, and exclusions to understand what medical expenses are covered and to what extent.

How to Choose the Right Policy?

When choosing a final expense insurance policy, consider

Coverage amount: ensure it covers your estimated final expenses

Premium: ensure it fits your budget –

Medical exam: decide if you want a policy with or without a medical exam

Insurance company ratings: choose a reputable insurer with high industry ratings

How do I file a final expense insurance claim when the insured person passes away?

With most companies you can either start a claim online or call the claims department. Check the company’s website for options. Be prepared to submit documentation, including a death certificate.

What are the factors that affect the cost of final expense insurance?

The cost of a final expense insurance policy for you may be different than the cost of the same policy for someone else. Insurance companies use certain factors to determine cost, such as:

Age. The older you are, the higher your premiums.

Amount of coverage. The higher the coverage, the higher the premium.

Gender. Men often pay higher costs for life insurance than women.

Health. If your burial insurance is a simplified issue policy, you may be required to answer some health questions to help the insurer determine whether or not to offer you a policy.

What are the Additional Benefits?

Funeral Advantage Program: Provides additional funeral-related benefits.

Legacy Benefit: Offers a legacy benefit to help with final expenses.

Terminal Illness Benefit: Accelerates a portion of the death benefit if diagnosed with a terminal illness.

Please note that specific plan details, features, and benefits may vary depending on the insurance carrier and location. It's essential to consult with a licensed insurance professional to determine the best plan for individual needs and circumstances.

How do I compare the policies?

Shop around and compare policies from different insurers

Read policy details: understand the terms and conditions of your policy

Choose a trusted beneficiary: ensure your beneficiary will use the payout as intended