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What makes the best Final Expense insurance plan

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Find the right Final Expense insurance for your needs so you’re well prepared and your family is well protected

As you get older, the ways in which you take care of our loved ones will change. You’ll look for solutions to eliminate placing a financial burden on them in your final days and beyond. You’ll need something easy to obtain, yet permanent, that offers flexibility for your family. That’s when you’ll realize Final Expense insurance is a viable choice. The following information guide can help you find the best Final Expense insurance coverage to fit your circumstances.

What is Final Expense insurance?

Final Expense insurance is a form of permanent insurance that covers a wide range of expenses you leave behind. They can include your funeral, legal fees, medical bills, and more. Because it is permanent, the policy stays in place as long as you pay the premiums, eliminating the need to shop for insurance options again. You name one or more beneficiaries, and those people receive the death benefit after your passing. They can then use the money as you’ve advised or as they see fit.

Final expense insurance plans have slightly higher premiums and lower death benefits than term life insurance policies, which expire after a specified amount of time. But Final Expense plans are easier to qualify for and offer coverage without a medical exam. Policies generally range from $1,000 to $25,000 and carry cash value that builds over the life of the policy, similar to an investment. The amount is paid as part of the death benefit or can be cashed out for part of its value after a specified period.

The differences among Final Expense insurance plans

To discover which plan is the best Final Expense insurance for you, it’s important to understand the differences between policies.

Types of death benefits

Most Final Expense insurance plans have two types of death benefits: level benefit and modified benefit. A level benefit keeps the death benefit the same — at its full amount — no matter when the insured person dies, whether it’s during the first or the last years of when the policy is active. The level benefit is usually less expensive than a benefit that increases over time, but it doesn’t account for inflation.

A modified benefit has a waiting period of two or more years before the full death benefit is available. If the insured passes during the restriction period, premiums paid will be returned, plus a percentage listed in the policy agreement.

Types of plans

Simplified issue final expense insurance

  • Simplified underwriting; approval depends on your answers to a few questions related to your health
  • Death benefits are a level benefit

Guaranteed issue final expense insurance

  • No underwriting; approval is guaranteed
  • Death benefits have a modified benefit
  • Premiums are higher than a simplified issue plan

If you have no big health concerns, a simplified issue plan may meet your needs. However, if you have chronic or serious health conditions, a guaranteed issue plan could be the best Final Expense insurance for you.

The features of the best Final Expense insurance

If you’re on a tight budget and are simply looking to cover funeral costs and a few extra bills, Final Expense insurance could be enough to meet your needs. You’ll want to accurately estimate funeral costs, though.

According to the National Funeral Directors Association, you should budget around $8,000 for traditional funeral services. If you’re currently under medical care, you may want to add extra coverage for pending bills.

When evaluating insurance providers and their policies, remember some offer more benefits and riders than others. For example, Wellabe offers three Final Expense Whole Life insurance products. Learn which one is right for you on the Final Expense insurance page or call 877-257-2663 to speak to an agent.

Photo credit: iStock

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Wellabe offers life and supplemental health insurance plans to help you prepare for good days and bad. We’ll always be here to empower you to be well — well prepared, well protected, and well loved.

Understanding Final Expense insurance

Protect tomorrow by preparing today

Kelly Rayburn, AVP national sales and distribution at Wellabe, and Olga Villaverde, from Lifetime TV’s The Balancing Act, discuss what Final Expense insurance is and why it is important to have in place for your loved ones.

Learn more about final expense insurance

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