What Is Final Expense Insurance Exactly?
Final expense insurance (or burial insurance) is a policy that is used to pay for burial expenses and funeral services to ease the financial burden placed on a family in the event the named insured dies. The features of a final expense insurance policy include:
- No medical exam required
- $2,500-$75,000 in coverage
- Amount due will either be issued immediately or within 48 hours
- Premiums never increase
- Beneficiaries can use proceeds for any purpose
A phone interview with one of our final expense agents, a voice or digital signature, and payment information is typically all that is needed to apply. Even if a person has no dependents, having a final expense insurance policy can help guarantee a proper funeral without creating a financial hardship for survivors.
A final expense policy is dependent on certain qualifications. A person will not qualify if:
- Currently hospitalized
- In a nursing home or hospice
- Has been advised by a medical professional they have less than one year to live
- Over the age of 89
- Has been diagnosed with AIDS or has tested HIV positive
- Diagnosed with Alzheimer’s or dementia
Is A Final Expense Life Insurance Policy Right For Me?
Depending on your current age and medical situation, a final expense policy may be beneficial for those who are simply looking to have some extra coverage for when they pass and a term life insurance policy with a larger death benefit is not currently offered to them or too expensive.
In some cases, this may be all the coverage someone can afford or qualify for.
If you are unable to qualify for a policy that has more or better benefits due to age or other disqualifying circumstance, a final expense life insurance policy could be exactly what you need to ensure your expenses are covered in the event you pass, allowing your family to have a more stress-free transition.