See if final expense insurance is right for you with SelectQuote.
Final expense can be a sure way to give you and your family peace of mind. Let us help you navigate your options.
What is final expense insurance?
Final expense insurance—also known as burial insurance—is one of the most thoughtful gifts you can give your family and loved ones. Final expense insurance helps cover end-of-life costs, including funeral expenses, credit card debt, medical bills and any other debt you don’t want to pass on to those closest to you. After debts are covered, any remaining funds can be used how your loved ones see most fit. At SelectQuote, we can help you explore your options for life insurance to see what policy and coverage makes most sense for you and your situation.
The Basics of Final Expense Insurance
Final expense insurance can be a great alternative or addition to traditional term or whole life insurance. Often referred to as burial insurance or funeral insurance, it’s common for individuals to purchase final expense insurance to cover end-of-life expenses. One of the main differences between final expense insurance and traditional life insurance, however, is that final expense does not require a medical exam, making it an appealing option for both seniors and individuals with health complications. We want to help remove as many barriers as possible to obtaining insurance and protecting your loved ones. Let us help you figure out if final expense insurance is right for you.
Types of Final Expense Insurance
There are three different types of final expense insurance:
- Simplified issue whole life insurance
- Guaranteed issue whole life insurance
- Critical illness life insurance
Simplified issue life insurance, as the name implies, has a simpler process for purchasing than traditional term or whole life insurance. Coverage with simplified issue is not guaranteed (as compared to guaranteed issue life insurance), but is based on a questionnaire about your health and lifestyle rather than an exam.
Guaranteed issue life insurance has guaranteed approval if you’re between the ages of 45-85. One of the biggest benefits of guaranteed issue is that it doesn’t require a medical exam, submission of medical records or any database check. Only a basic application has to be completed to obtain guaranteed issue whole life insurance.
Critical illness life insurance can provide coverage despite future serious health issues such as cancer, heart attacks or strokes, and there are specifically designed policies for various conditions. Critical illness requires no medical exam and provides lifetime coverage, regardless of future diagnosis.
Final Expense Insurance Coverage
See what kind of final expense insurance might be right for you and your family.
Simplified Issue Whole Life
- Only a few medical questions, but no exam
- Coverage up to $40,000 for ages 45-85
- Premium levels to age 100
Guaranteed Issue Whole Life
- Guaranteed acceptance
- No medical exam or health questions
- Coverage up to $25,000 for ages 45-85
- Pays a lump-sum benefit upon diagnosis
- No medical exam
- Lifetime coverage
Cost of Final Expense Insurance
The cost of final expense insurance is oftentimes less than the cost of traditional term life insurance, but, with lesser coverage. Additionally, with final expense insurance, your monthly rates will never go up and your coverage will never go down.
Benefits of Final Expense Insurance
Final expense insurance can be beneficial for both seniors and individuals with health concerns, but it can also be a smart option if you’re on a tight budget. Final expense insurance doesn’t always provide as much coverage as traditional term or whole life insurance, but if you’re only looking to cover end-of-life costs and not so much long-term expenses, it could potentially be enough coverage for your needs.
Additionally, final expense insurance provides peace of mind for you and your family. While traditional insurance policies can often be used to cover ongoing costs such as the mortgage, college tuition and everyday living, final expense insurance can take care of the additional stress that comes with planning for end-of-life events.
Frequently Asked Questions (FAQs) about Final Expense Insurance
How do you use final expense insurance as funeral insurance?
Final expense insurance can help cover a number of expenses after you’re gone, including funeral costs. Your beneficiaries will work with the insurance company your policy is through following your passing to receive the payout.
What alternatives are there to final expense insurance?
If you aren’t concerned that your age or health will play a factor in your ability to obtain insurance, traditional term life insurance policy should be your first option when considering life insurance. It’s the most cost-effective way to cover burial expenses in addition to any other expenses your loved ones may have.
What is the difference between final expense insurance and life insurance?
The main differences between final expense insurance and traditional term or whole life insurance are the process to getting covered and the amount of coverage available. Final expense insurance does not require a medical exam, but in turn, you might not see as high of coverage.
Do I need final expense insurance?
Whether used as an additional or alternative to traditional life insurance, final expense insurance can provide peace of mind for you and your loved ones. Final expense insurance can help cover the costs of funeral expenses, credit card debt, bills and more once you’re gone, ensuring your family doesn’t have to stress about money during that time.
Plan For Your Family’s Future with SelectQuote
Thinking about life insurance and final expenses can be overwhelming—not to mention time consuming—but we can help simplify the process. In just a few minutes, we can help you shop some of the most trusted carriers and compare coverage and rates, ensuring you’re getting the right insurance for you and your family.