Final Expense Life Insurance is actually a form of Whole Life Insurance.
What is ”Burial Insurance” or “Funeral Insurance”?
All three of these terms mean the exact same thing.
Final Expense Insurance = Funeral Insurance = Burial Insurance
We will use all three terms interchangeably throughout the website.
3 ways Final Expense is Unique
Final expense life insurance is different from other types of life insurance. The insurance carriers had their potential clients in mind when they designed these policies.
These plans match up well with seniors, those with health issues, or really anyone looking to protect their family from burial/funeral expenses.
Let’s look at how Final Expense life insurance is unique.
Small Face Value Options
There are some burial insurance companies that will allow you to buy as little as $1,000 in coverage.
There is no other form of life insurance that will allow you to buy such small amounts of protection.
Most companies have face value options somewhere in the range of $2,000-$30,000. Some carriers can go higher.
This is important because it allows you to buy only what you need. You won’t have to pay out a bunch of money for coverage that you don’t really want.
For example, let’s say you’re considering cremation, you would need roughly $2,500-$6,000 in coverage to ensure everything would be taken care of.
Whether you want $3,000, $7,000, $10,000 or $25,000 in final expense protection, we can find the right coverage for you.
What if… I want to get higher face amounts?
Some companies have high face amounts such as $35,000 or more. Even then, you could always buy multiple policies to get the total amount of coverage you need.
Burial life insurance underwriting is very sympathetic to seniors with health concerns. These plans are tailored to protect individuals even with severe health issues.
The unique underwriting of final expense insurance allows seniors with risky health conditions to still qualify for coverage. These policies can provide excellent peace of mind knowing that their family will not be burdened with their funeral costs.
Here are some examples of conditions where it is still possible to get “day one” coverage with a final expense policy –
- Morbid Obesity
- Diabetes Type 2
- Heart Attack or Stroke; more than 1 year ago
- High Blood Pressure
- Pacemaker Or Defibrillator
- Atrial Fibrillation
- COPD, Emphysema, Asthma
- Cancer; more than 2 years ago
- Cirrhosis of the Liver
- Depression or Bi-Polar illness
- Parkinson’s Disease
- Sleep Apnea
- Multiple Sclerosis
- Hepatitis A, B, C
- Kidney Disease
- SLE Systemic Lupus
There are a multitude of other health conditions that may be covered as well. Do you have a condition that is not on the list – don’t worry, more than likely we can find something to fit your needs.
Guaranteed Issue Policies
Guaranteed issue plans are for those with what the insurer considers ultra-high risk health conditions; an individual with these conditions would likely not be approved with any other policy.
In a situation such as this, a guaranteed issue policy is the only choice. If these policies were not available, folks with severe health conditions would not have any option at all.
Guaranteed issue plans have no medical underwriting or health questions. If you are mentally capable of entering into a contract, your acceptance is guaranteed.
There are a couple of disadvantages to these “guaranteed plans”
- Every policy comes with a 24-month waiting period. That means if the insured dies in the course of the first 24 months, the carrier will refund the premiums paid in. (plus 7% – 10% interest usually).
- The cost is higher when compared to policies that require medical underwriting. With the insurance carrier taking on additional uncertainty (no health questions), the rate will be more to offset the increased risk.
A guaranteed issue policy is the only option for folks with these health conditions.
- Currently in a Nursing Facility of Hospital
- Hospice Care
- Terminal Illness
- Organ Transplant
- HIV or AIDS
- Alzheimer’s or Dementia
Since a guaranteed issue policy is always available, there are coverage options for virtually everyone, no matter their health condition.