KW INC LIFE

What is Final Expense Life Insurance?

Final expense insurance, also known as burial insurance, is designed to cover funeral and burial costs along with other end-of-life expenses. It’s typically easier to obtain than standard life insurance since it doesn’t usually require a health assessment. Depending on the insurer, coverage can start the same day you apply.

How Does Final Expense Life Insurance Work?

These policies are often a type of whole life insurance, providing lifelong coverage and cash value as long as premiums are paid. Some may be offered as term life insurance, covering a specified period without a cash value account. The death benefit, which is the amount paid to beneficiaries upon your passing, is fixed, as are the premiums. Coverage limits typically range from $2,000 to $50,000, and eligibility generally extends to those aged 45 to 85.

Final expense policies can cover not only funeral and burial costs but also medical bills, remaining mortgages, and other debts. They often come with optional riders, such as:

• Accidental Death Benefit: Provides an extra payout if death occurs by accident within a specified time frame.
• Accelerated Death Benefit: Offers a portion of the death benefit if diagnosed with a terminal illness, reducing the payout upon death.
• Children’s Term Insurance: Adds term life insurance for children, with options for conversion to whole life insurance as they age.

Who’s Eligible for Final Expense Insurance?

Final expense insurance is generally available to those over 50, with age requirements ranging from 45 to 85 depending on the insurer. Most policies don’t require medical exams, though some may ask for a health questionnaire. Guaranteed issue policies don’t consider health status but may have an initial waiting period before benefits are payable.

Types of Final Expense Insurance

• Guaranteed Issue: No health information required, but may have a waiting period of 1-3 years before full benefits are payable.
• Simplified Issue: Requires a health questionnaire but no full medical exam.

Pros and Cons of Final Expense Life Insurance

Pros:

• Covers end-of-life expenses: Helps with funeral costs, medical bills, and debts.
• Fixed premiums: Easier financial planning for seniors on a fixed income.
• No health exams required: More accessible for high-risk individuals or those with preexisting conditions.

Cons:

• Premiums may exceed death benefit: If you live longer than expected, you might pay more in premiums than the benefit amount.
• More expensive than traditional life insurance: Higher costs compared to policies bought at a younger age.
• Smaller benefit amount: Typically ranges from $2,000 to $50,000, which might not cover all financial needs.

Pros and cons of final expense life insurance

Pros	Cons
▪ Covers end-of-life expenses for beneficiaries ▪ Offers fixed premiums ▪ Health exams are typically not required	▪ Premiums could eventually total more than the death benefit ▪ May be more expensive than traditional life insurance obtained at a younger age ▪ Smaller benefit amount

How Much Does Final Expense Insurance Cost?

Costs vary based on the insurer, coverage limits, and your age. For example, a 60-year-old woman in Spartanburg, South Carolina might pay:

• Lincoln Heritage: $46 per month for $10,000 coverage
• Columbian Financial Group: $36 per month for $10,000 coverage
• Mutual of Omaha: $32 per month for $10,000 coverage
• Transamerica: $39 per month for $10,000 coverage

Final Expense Insurance Claims Process

1. Contact the Insurance Company or Agent: Understand the claims process and necessary documentation.
2. Fill Out the Claim Form: Provide details like policy number, insured’s information, and death date.
3. Submit Documentation: Include certified death certificate, medical records, and other required documents.
4. Await Decision: The insurer will review the claim and notify you of the outcome. If approved, you’ll receive the payout; if denied, you’ll get an explanation.

Costs Related to Final Expenses

Funeral costs can be significant, with caskets ranging from $2,000 to $10,000. The national median funeral cost is $7,848, and a funeral with cremation costs around $6,971, according to the National Funeral Directors Association. Although the cost of funerals can be even higher.

Understanding final expense insurance can help you plan for these inevitable costs, ensuring peace of mind for you and your loved ones. For more information or to get started with a policy, feel free to reach out to me directly. Your agent for Life: Kentrell Williams  info@kwinclife.com 

Serving the Community and Mentoring

In addition to my professional work, I am passionate about giving back to the community and mentoring the next generation of life insurance agents. I believe in empowering others to achieve their financial dreams and providing the guidance and support they need to grow their businesses.

Understanding final expense insurance can help you plan for these inevitable costs, ensuring peace of mind for you and your loved ones. For more information or to get started with a policy, feel free to reach out to our office at 470-400-9955. To get a quote click here https://form.jotform.com/KWINCGROUP/Coverage-no-judgement-Quote