What is Final Expense Insurance?

Final expense insurance is typically a whole life insurance policy with a smaller coverage amount, usually between $5,000 and $50,000. Unlike traditional life insurance, it’s designed to cover specific end-of-life costs rather than provide comprehensive income replacement. Premiums are generally fixed for life, and the policy does not expire as long as premiums are paid.

Key Benefits of Final Expense Insurance

• Affordable Premiums: These policies generally have lower premiums due to their smaller coverage amounts.

• Simplified Underwriting: Many policies do not require a medical exam, making it easier to qualify, especially for seniors or those with pre-existing health conditions.

• Quick Payout: Benefits are paid directly to beneficiaries, allowing for timely coverage of funeral expenses and other bills.

Top Final Expense Insurance Options in the USA

Mutual of Omaha

Coverage Range: $2,000 - $40,000

• Benefits: Mutual of Omaha is known for offering competitive rates and policies with no medical exam required for qualifying individuals. Their final expense policy provides guaranteed coverage as long as premiums are paid, and they offer a simplified application process, making it ideal for seniors.

• Pros: Affordable premiums, easy application, and coverage for health conditions.

• Cons: The maximum coverage limit may be low for some needs.

AIG (American International Group)

Coverage Range: $5,000 - $25,000

• Benefits: AIG offers a guaranteed issue policy, meaning acceptance is guaranteed for applicants between 50 and 85 years old, regardless of health status. It’s a suitable choice for those with serious health concerns.

• Pros: No medical exam, guaranteed acceptance, and affordable premiums.

• Cons: Limited to smaller policy amounts and has a graded death benefit for the first two years.

Gerber Life Insurance

Coverage Range: $5,000 - $25,000

• Benefits: Gerber Life Insurance offers policies without medical exams and with easy qualification for individuals between 50 and 80 years old. It’s a trusted brand with a reputation for simplicity and reliability.

• Pros: Simple application process and competitive premiums.

• Cons: Coverage limits may be too low for some families’ end-of-life expenses.

Foresters Financial

Coverage Range: $5,000 - $35,000

• Benefits: Foresters Financial provides final expense insurance with additional benefits like terminal illness riders, which allow the insured to access a portion of the death benefit if diagnosed with a terminal illness.

• Pros: Extra benefits, competitive premiums, and no medical exam required.

• Cons: May not be available in all states.

Transamerica

Coverage Range: $1,000 - $50,000

• Benefits: Transamerica offers a range of final expense policies, including simplified and guaranteed issue options. This flexibility makes it easier to tailor a policy to individual needs and budget.

• Pros: Higher maximum coverage and various policy options.

• Cons: Health-based underwriting may apply to some policies, so not all applicants are guaranteed approval.

Fidelity Life

Coverage Range: $5,000 - $35,000

• Benefits: Fidelity Life offers affordable final expense policies, including options for simplified issue policies, meaning no medical exams are required for those who qualify.

• Pros: Competitive pricing and simplified application.

• Cons: Limited additional benefits and add-ons.

Choosing the Right Final Expense Insurance

When selecting a final expense policy, it’s essential to consider the following factors:

Coverage Needs

Calculate the potential expenses your family may face, including funeral costs, medical bills, and outstanding debts. This will help you determine the coverage amount that suits your needs.

Health Conditions

Some policies require limited health underwriting, while others offer guaranteed issue policies. If you have health concerns, guaranteed issue policies may be a better option, though they often come with a two-year graded death benefit period.

Budget

Since final expense policies are generally affordable, consider the monthly premium and ensure it fits your long-term budget. Most policies offer fixed premiums for life.

Additional Benefits

Some policies come with riders, such as terminal illness benefits, which allow the insured to access a portion of the benefit if diagnosed with a terminal illness. Consider policies that offer these added benefits if they align with your needs.

Insurance Company Reputation

Choose a reputable insurance provider known for customer service, financial stability, and timely payout of claims. Researching customer reviews and ratings from agencies like A.M. Best can help you identify reliable insurers.

Steps to Apply for Final Expense Insurance

• Compare Quotes: Start by gathering quotes from different insurers to compare rates and coverage options. Many providers offer online quote tools to simplify the process.

• Consult with an Agent: Speaking with an insurance agent can help you understand the options available and find a policy that meets your needs.

• Complete the Application: Fill out the application form, which may include basic health questions. Most final expense policies do not require a medical exam.

• Review Policy Terms: Carefully review the policy’s terms, including premium payment requirements, coverage details, and any waiting periods.

• Select Beneficiaries: Designate beneficiaries who will receive the policy payout to cover end-of-life expenses.