What is Final Expense Insurance?

Final Expense insurance is commonly referred to as burial insurance, and it is a type of whole life insurance designed to cover funeral and burial expenses, memorial service expenses, medical bills, etc. Death benefits usually range from $5,000 - $45,000 so the coverage amounts are quite small compared to traditional life insurance policies.

Features of Final Expense Insurance

1. Death benefits typically range from $5,000 - $45,000 making it a more accessible and affordable policy for those on limited incomes.

2. Premiums are usually fixed so customers do not have to worry about rising insurance costs.

3. The underwriting process is usually straightforward and generally does not require a medical exam. There are medical questions that are asked in order to determine premiums and eligibility.

4. The death benefit can be used for anything - not just final expenses - and is typically tax free.

5. Because Final Expense Insurance does not build cash value it typically does not affect an individual's eligibility to qualify for Medicaid or Medicare.

Who Is it For?

Final Expense insurance is not the best option for everyone. These are typically the best candidates for final expense insurance:

1. Individuals age 50-85;

2. Those who do not want to burden their loved ones with final expenses and do not have the means to cover their own final expenses otherwise;

3. Those who are generally uninsurable for other traditional policies (think pre-exisitng health conditions, etc.);

4. Those who do not have permanent coverage, and not need, do not qualify for, or cannot afford a traditional life insurance policy;

5. Those who do not need a lot of coverage or do not want policies with living benefits or cash value (final expense policies typically do not build cash value and do not provide any living benefits unlike other whole life policies).

Final Expense insurance is one of my favorite products and touches my heart the most because it allows me to help so many more people than I ever could with traditional life insurance products. Final Expense is not designed for any other reason except for peace of mind by alleviating the burden of cost when a loved one passes away. With the average cost of funerals (from cremation to traditional burial) ranging from $2000 - $40,000+, buying peace of mind is priceless and something your loved ones may not even realize to be such a blessing until that day comes.