Final Expense

What Is Final Expense?

Final Expense is a type of permanent Whole Life Insurance that has a smaller death benefit than standard Whole Life. It is sometimes referred to as “Burial Insurance” or “Funeral Insurance”. The death benefit is usually between $2,500 to $40,000 depending on the carrier, and for seniors age 45 to 85, also depending on the carrier. It is simplified issue, meaning there is no Para-Med exam. The Carrier will perform a MIB (Medical Information Bureau) check, to see your pharmaceutical history, as well as ask the customer some medical questions on the application. Some of these questions are knockout questions if the answer is yes. Other medical questions will determine whether the policy will be issued at level, or modified issue.

Level Benefits

Are immediate coverage, and the premium never increases. This type of coverage is the lowest cost of insurance.

Modified Issue

Benefits re held for the first 2 years of the policy, The death benefit in the first 2 years is usually a return of premium, plus 10% depending on the carrier, then 100% year 3 and beyond. The premium are higher than the level premiums. Modified benefits are determined by the health questions on the application.Guaranteed Issue

Guaranteed Issue

Is just what it sounds like, guaranteed. There are only a few carriers that offer these types of policies. They are the highest premiums, since the Insurance company has more risks, but if you have been declined by the other carriers, then this is your only hope to getting insured. The plus side to these types of policies, is they will cover non-coverable illnesses that aren’t covered with level and modified policies.

Available Riders

The riders that you can get with Final Expense policies are Accidental Death which can double your death benefit for a few dollars more per month, and a Child/Grandchild rider to cover the child for $5,000, also for a few dollars more per month. We have one carrier that has a stop premium rider in case you can no longer work.

Funeral Costs:

Every year funeral costs continue to rise. They can average anywhere from $7,000 to $15,000 depending on what part of the country that you live in. A burial funeral will cost the most, while a cremation will have the lowest costs.

Funeral with Burial:
  • Metal Casket: $2,400
  • Basic Services Fee: $2,100
  • Vault: $1,395
  • Embalming: $725
  • Facilities/Staff for Ceremony: $500
  • Facilities/Staff for Viewing: $425
  • Hearse: $325
  • Removal or Transfer of Remains: $325
  • Miscellaneous Preparation: $250
  • Printing for Memorial: $160
  • Service Vehicle(s): $150
Funeral with Cremation:

In 2015, the NFDA projected that cremations would eventually become more common than traditional burials. Some families opt to hold memorial services and viewing prior to cremation. Other families, however, choose to hold their remembrances after cremation, letting the urn symbolize their loved one. The median price of funerals with cremations is $6,260. As with the above estimate of services with burial, this number does not include cash advance fees or cemetery monument or marker costs.

  • Basic Services Fee: $2,100
  • Cremation Casket: $1,000
  • Embalming: $725
  • Facilities/Staff for Ceremony: $500
  • Facilities/Staff for Viewing: $425
  • Third-Party Cremation Fee: $350
  • Removal or Transfer of Remains: $325
  • Urn: $275
  • Miscellaneous Preparation: $250
  • Printing for Memorial: $160
  • Service Vehicle(s): $150

As you can see, these costs can add up quickly. By 2030 the average cost of a funeral is expected to be around $18,000.

Facing these expenses, some families may choose to take on debt in the form of loans or money borrowed from friends (think GoFundMe). They may opt to look into low-cost burial options. Right now, you are thinking about that loved one that will have to handle your affairs when you die. What would happen to them if you left them with a large financial burden such as a funeral, at the same time they are grieving for you.

Making these financial decisions is not what loved ones need during this difficult time. Instead, they need time to heal and space for grieving.

While it can be tempting to put this issue out of sight and mind, the reality is that it’s statistically unlikely for most families to comfortably swing the cost of a funeral. CNBC reported that 40% of American families couldn’t cover an unexpected expense of just $400. Final expenses which include funeral services, outstanding debts, probate fees, and more, can have a much more significant price tag.

Proactively making arrangements with final expense insurance makes it simple for your family to access the funds they need to handle these expenses.

We represent Insurance Carriers, that have on a consistent basis, the lowest rates In the industry, and some have been in business for over 100 years. Click the button below to get a quote.