Is Final Expense Insurance Right for Me?

Final expense insurance may be the right choice for seniors who want to cover their final expenses. Also referred to as burial insurance or funeral insurance, it is a type of life insurance policy designed to cover final disposition and funeral services after death.

Funeral and burial expenses have been rapidly rising for the past 30 years. Families have paid an average of $7,848 for funerals with burials in recent years, as stated on CNN. However, this figure does not include the costs of a headstone, a vault, or opening and closing of the ground, which can add thousands. Opting for cremation is nearly as costly, at an average of $6,971.

How Is Final Expense Insurance Different Than Traditional Life Insurance?

Burial insurance policies are typically offered in lower amounts than traditional life insurance. Other distinctions include the following:

• You do not need a medical exam. Anyone can qualify, regardless of health.
• It may be possible to purchase final expense insurance up to the age of 80.
• As coverage amounts are lower, monthly premiums are usually affordable.
• You often have the option to pay once a year or once a month.
• Premiums are fixed for the life of the policy.
• Some policies can earn dividends.
• Beneficiaries receive a cash payout that can be used to cover your final expenses.

Who Needs Final Expense Insurance?

Final expense insurance is offered in lower amounts for affordable premiums without a medical exam. This makes it an ideal choice for older, retired adults who no longer need life insurance for income replacement but want to cover the costs of their final expenses to spare family members the burden. This type of policy can remain in effect up to the age of 100 or beyond. It can provide peace of mind for individuals who want coverage their families can rely on.

How Much Does Final Expense Insurance Cost?

Rates for funeral insurance can vary, depending on your age and the death benefit. They start at an average of approximately $53 per month. The younger you are, the lower your premiums are likely to be. For example, a retired, 65-year-old woman in excellent health may be able to purchase $10,000 in final expense insurance for $56 per month, while a 55-year-old woman would pay approximately $40, and a 75-year-old woman would pay slightly more than $86 per month.

The best approach is to shop around and compare at least three insurance providers before making a decision. Purchase the policy from a reputable company that offers the best available rates and coverage. When deciding, one thing to consider is whether the policy has a waiting period. In some cases, you could pay premiums for as long as two years before your coverage goes into effect.

Final expense insurance may be the right choice for you if you no longer need income replacement protection but want to spare your family the burden of funeral and burial expenses. Our friendly agent can help you find the right final expense insurance policy for you.