Final Expense Insurance: What You Need to Know

May 3, 2019

Do you know that a funeral can cost as much as $9,000? Are your loved ones prepared to cover the cost of a funeral when you pass away? Although it can be difficult to plan your final expenses, having preparations in place can make all the difference for your loved ones.

Most American families do not have the funds readily available to pay for the cost of a funeral, but there are life insurance solutions that can protect against these expenses. Read on to learn more about final expense insurance.

What is final expense insurance?

Final expense insurance is a whole life insurance policy that covers the costs of a funeral and any end-of-life expenses. The goal of this insurance is to protect your loved ones from having to pay any expense associated with your passing. Many insurance carriers offer simplified underwriting, so you generally won’t need to undergo a medical exam to qualify for coverage.

Unlike term life insurance, which expires after a set period, final expense is a type of permanent life insurance that is active until you die. When you die, your beneficiaries will receive the lump sum death benefit.

Final expense insurance is generally recommended for people from 50 – 80 years old. A final expense policy is also a great fit for middle-aged individuals who are preparing their estate and retirement plans.

How much does a funeral cost?

Many people never consider the costs associated with a funeral. According to the Federal Trade Commission, the median cost of a funeral is about $8,000. This does not include the cost of cemetery plots, markers, or obituary costs. Other expenses associated with a funeral can include a casket, cremation, embalming services and any fees appointed by the funeral home.

Though these expenses can vary based on your burial plans, the reality is that a funeral can be a heavy financial burden for your loved ones. Having a final expense policy ensures your loved ones aren’t left with these hefty expenses after you pass away.

How much does final expense insurance cost?

Final expense insurance premiums vary based on the age and health of the person applying for coverage, but this insurance is usually an affordable option for many individuals. A person in great health in their late 50’s could end up paying as little as $20/a month. However, someone over 65 with a medical condition could pay around a hundred dollars (more or less) a month.

To find affordable life insurance coverage that fits your lifestyle and budget, your Symmetry Financial Group life insurance agent can help you every step of the way. Our agents have access to over 30 of the top carriers and can work to find you an affordable final expense policy with no medical exam (along with other benefits).

When is the best time to buy a final expense policy?

It is never too soon to purchase final expense insurance, and depending on your financial situation, it can be more affordable to get this insurance early in life. Since the cost of a final expense premium is based on your age and health at the time you apply, and final expense premiums never change, you’ll secure a lower rate for the life of your policy if you apply sooner rather than later.

How much final expense coverage do I need?

Before you choose a final expense policy, determine how much life insurance you and your family will need in the event of your passing. Your final expense life insurance policy should be enough to cover all these bills without draining your family’s bank account.

It's also important to consider any recurring expenses that your family will face after you die. Do you want to help cover some of these costs? Consider items like your lost income, the cost of your family’s mortgage, and possibly your children’s future expenses like a college education.

Benefits of final expense insurance

Beyond the protection and peace of mind that final expense provides, there are also some exclusive benefits to securing this coverage:

  • The death benefit is guaranteed (if premiums are paid on time each month)
  • Choose between monthly or annual premium payments
  • Premiums remain stable the life of the policy and may be payable beyond age 100

These are just a few of the benefits of final expense life insurance. Knowing that your family will be protected when you pass away is an immeasurable benefit that you will appreciate with this life insurance coverage.

The bottom line

You will never regret being financially prepared enough to protect your family from the debts that come with your passing. If you want to leave a clear indication of your wishes when you pass away, a final expense life insurance policy is a good way to plan how your money is spent ahead of time. Your Symmetry Financial Group insurance agent can help you select a policy that will fit your budget, with considerations around your funeral and burial plans.

We understand that taking the time to make this decision now can be difficult, but it will make all the difference when the time comes. And we are here to help you every step of the way.

Now is a great time to consider getting final expense life insurance. To learn more about this insurance, fill out our quick and easy form to Request a Final Expense Quote , or give us a call today at 828-581-0475 .


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