What Is Final Expense Insurance?
Final expense insurance is a whole life insurance policy that has a small death benefit and is easy to get approved for. Final expense insurance also called “funeral insurance” or “burial insurance,” final expense life insurance typically provides a guaranteed payout to help loved ones pay for a funeral service, burial or cremation, doctor or hospital bills, or other immediate expenses after death. Like other types of permanent insurance, final expense insurance will never expire as long as you keep up with your premiums. Since coverage amounts are lower than other types of life insurance, like a term or permanent insurance, the premiums for a final expense policy tend to be affordable. Coverage amounts can range from $2,000 to $35,000. The average cost of a funeral ranges from $7,000- $12,000. Since coverage amounts are lower than other types of life insurance, like a term or permanent insurance, the premiums for a final expense policy tend to be affordable. Final expense insurance is easy to qualify for, with no medical exam required. As long as you fall between the age limits of 50 to 85 years old, you can often get approved for a policy within days.
The beneficiaries of a final expense life insurance policy can use the policy’s payout to pay for a funeral service, casket or cremation, medical bills, nursing home bills, an obituary, flowers, and more. However, beneficiaries can use the death benefit for any purpose, from paying property taxes to taking a vacation.
When you apply for final expense insurance, you will not have to deal with a medical exam or let the insurance company access your medical records. However, you will have to answer some health questions. Because of the health questions, not everyone will qualify for a policy with coverage that begins on day one.
