Final Expense

Final expense insurance exists so you can have peace of mind knowing that your loved ones are taken care of when you depart this earth. As with all types of life insurance, it provides an immediate death benefit to a named beneficiary that is free of estate taxes. Many people have asked, “What makes this a final expense policy?” This is a great question, and the details of these policies are outlined below. We encourage all of our clients to understand how these policies function so that they can make an educated decision as to their benefits.

Easier to Qualify For

Final expense policies, in contrast to term and traditional whole life policies, are much easier to qualify for. Many times approval can be obtained on the spot if not 24-48 hours later. These policies do not require a medical exam (no traveling nurse to come to your home). They also forgo attending physician statements, which is a letter from your doctor. The majority of the time these special policies are underwritten by answering a series of yes or no questions combined with a medical background check. Some companies will conduct an interview over the phone with an underwriter. The end result is a near-instant approval.

Smaller Death Benefits

In contrast to other life insurance products, final expense policies start as low as $1,500 and top off around $50,000. If you are looking for coverage that exceeds $50,000, then we would look at other products to fill your needs. The average death benefit on a final expense policy is $20,000 which is enough to cover a funeral, some outstanding bills, and provide a small cushion to a loved one that is left behind. In all cases, we pair policy size with the needs of the insured. There is not a one size fits all approach.

Permanant Coverage

Another key feature of final expense policies, is they are structured as whole life or permanent insurance. This is because a term policy that expires two years before your passing does not cover the need it was designed to cover. A final expense policy is something that will be there when you need it.

Fixed Premium

A properly structured policy will feature a premium that will never go up. There are policies that increase over time, but they are not true final expense policies. All of the solutions that we recommend to our clients for final expense coverage feature a premium that is fixed. It doesn’t make sense to find something that fits in your budget now but is too expensive down the road.

Additional Benefits

Many companies offer additional benefits with their final expense policies. For instance, some companies offer free legal services. This can help you get a will in place. Others offer the opportunity to draw your death benefit while you are still alive if you are diagnosed terminally ill. Each company has its own benefits and it is one consideration we factor when looking for a solution to pair with our clients.

Conclusion

Regardless of your situation, you should be commended for looking into a policy that will provide an infusion of cash when your family needs it most. We strongly encourage you to complete the quote request and see what options are available to you.