Final expense insurance is a type of life insurance policy with a smaller premium. It is designed to help families pay costs associated with end-of-life. These premiums are much more modest than the average life insurance policy, and the death benefits are typically between $2,000 and $50,000. This makes the monthly premium lower. Read our tips below to get the best final expense insurance plan for you.
Tip 1: Predict Your Financial Needs
While it’s impossible to predict the future, you can plan for it. A big part of choosing the best plan for you is anticipating your future. Make a list of the debts you have now and the debts or financial obligations you predict you’ll have down the road. These typically include mortgages, private loans, credit card debt, medical bills, and funeral expenses. This calculator can help you get started.
Tip 2: Understand Your Health Needs
Another thing you need to be aware of is your current health and your anticipated health in the near future. There are four types of final expense insurance plans. Each of them is geared towards a certain level of health. For example, a Level expense plan is for people in excellent health and costs the least per month. People with excellent health have little or no medical problems. Those with minor health problems could have something like well-controlled diabetes or distant heart attacks. People with moderate/severe health problems have health conditions that could pose a threat any day. Look through each type to see where you belong.
Level
- Applicant Health: Excellent
- When You’re Eligible for Benefits: Immediately after death
- Cost of Plan: Low
Graded
- Applicant Health: Minor Health Problems
- When You’re Eligible for Benefits: 2-year waiting period
- Cost of Plan: Medium
Modified
- Applicant Health: Serious Health Problems
- When You’re Eligible for Benefits: 2-year waiting period
- Cost of Plan: High
Guaranteed Issue
- Applicant Health: Generally the most serious problems
- When You’re Eligible for Benefits: 2-year waiting period
- Cost of Plan: Very High
Tip 3: Research Your Companies
The best insurance companies for consumers looking for final expense insurance are, in no particular order:
- Mutual of Omaha
- Foresters Financial
- Transamerica
- Royal Neighbors of America
- American Amicable
- AIG
- Americo
- Gerber Life
Look at each company to learn more.
Mutual of Omaha
A.M. Best Rating: A+
Pros:
- No waiting period
- Low monthly rates
- Flexible options
- Accept some chronic diseases
Cons:
- Do not accept all serious diseases
Foresters Financial
A.M. Best Rating: A
Pros:
- No waiting period
- Low monthly premiums
- Flexible Plans
- Offer plans to people with mental health issues
Cons:
- Modified plan is not a good value
TransAmerica
A.M. Best Rating: A+
Pros:
- No waiting period
- Very large age range
- Very large coverage range
- Great for people with COPD
Cons:
- No major stand-out cons
Royal Neighbors of America
A.M. Best Rating: A-
Pros:
- No waiting period
- Flexible plans
- Low monthly premiums
- Best for seniors with diabetes
- Good for people with other serious issues
Cons:
- Does not offer guaranteed acceptance plans
Prosperity Life Insurance Group
A.M. Best Rating: A
Pros:
- No waiting period
- Includes people with serious mental health disorders
- Good premiums for tobacco users
- Does not include cigar or pipe users as tobacco users in its algorithm
Cons:
- Smaller range of coverage
AIG
A.M. Best Rating: A+
Pros:
- Guaranteed acceptance
- Lower monthly premium that other guaranteed plans
Cons:
- 2-year waiting period – typical for guaranteed plans
- Smaller coverage range
Americo
A.M. Best Rating: A
Pros:
- No waiting period
- Asks very few medical questions
- Accepts people with many serious conditions
Cons:
- Smaller range of coverage
Gerber Life Insurance
A.M. Best Rating: A
Pros:
- Guaranteed acceptance plan
- High interest rate with refund
Cons:
- 2-year waiting period – typical for many guaranteed plans
- Smaller range of coverage
Tip 4: Anticipate Your Costs
Anticipating your costs means understanding what you’re most likely to pay — depending on your variables. Use our list below to help you predict how much you’ll have to pay (monthly) for your policy.
People Age 55
Female No Waiting Period:
$5,000: $15.80
$10,000: $28.40
$15,000: $41.00
$20,000: $53.60
Female Tobacco & No Waiting Period
$5,000: $20.66
$10,000: $38.32
$15,000: $55.88
$20,000: $73.44
Female Guaranteed Acceptance
$5,000: $18.38
$10,000: $35.84
$15,000: $53.30
$20,000: $70.77
Male No Waiting Period:
$5,000: $19.15
$10,000: $35.09
$15,000: $51.04
$20,000: $66.98
Male Tobacco & No Waiting Period
$5,000: $25.24
$10,000: $47.27
$15,000: $69.30
$20,000: $91.33
Male Guaranteed Acceptance
$5,000: $23.51
$10,000: $46.11
$15,000: $68.70
$20,000: $91.30
People Age 65
Female No Waiting Period:
$5,000: $22.11
$10,000: $41.01
$15,000: $59.91
$20,000: $78.82
Female Tobacco & No Waiting Period
$5,000: $29.60
$10,000: $56.00
$15,000: $82.40
$20,000: $108.79
Female Guaranteed Acceptance
$5,000: $28.19
$10,000: $54.51
$15,000: $80.76
$20,000: $107.02
Male No Waiting Period:
$5,000: $29.48
$10,000: $55.76
$15,000: $82.04
$20,000: $108.31
Male Tobacco & No Waiting Period
$5,000: $41.10
$10,000: $78.99
$15,000: $116.88
$20,000: $154.77
Male Guaranteed Acceptance
$5,000: $34.60
$10,000: $68.29
$15,000: $101.98
$20,000: $135.67
People Age 75
Female No Waiting Period:
$5,000: $37.81
$10,000: $72.41
$15,000: $107.01
$20,000: $141.62
Female Tobacco & No Waiting Period
$5,000: $48.54
$10,000: $94.43
$15,000: $140.31
$20,000: $186.20
Female Guaranteed Acceptance
$5,000: $45.60
$10,000: $90.29
$15,000: $134.98
$20,000: $179.67
Male No Waiting Period:
$5,000: $51.37
$10,000: $99.53
$15,000: $147.69
$20,000: $195.85
Male Tobacco & No Waiting Period
$5,000: $67.57
$10,000: $132.49
$15,000: $197.42
$20,000: $262.34
Male Guaranteed Acceptance
$5,000: $62.79
$10,000: $124.49
$15,000: $185.74
$20,000: $246.98
People Age 85
Female No Waiting Period:
$5,000: $69.55
$10,000: $135.90
$15,000: $202.25
$20,000: $268.60
Female Tobacco & No Waiting Period
$5,000: $96.45
$10,000: $180.70
$15,000: $282.95
$20,000: $376.20
Female Guaranteed Acceptance
$5,000: $103.10
$10,000: $204.20
$15,000: $305.31
$20,000: $406.41
Male No Waiting Period:
$5,000: $93.18
$10,000: $183.15
$15,000: $273.13
$20,000: $363.10
Male Tobacco & No Waiting Period
$5,000: $141.39
$10,000: $279.58
$15,000: $417.77
$20,000: $555.97
Male Guaranteed Acceptance
$5,000: $150.43
$10,000: $298.86
$15,000: $447.30
$20,000: $595.73
You can also use a calculator. While it can be tiresome to go through and individually compare, doing your homework will minimize any unforeseen costs.
Tip 5: Find a Burial Insurance Agent
Finding a burial insurance agent is one of the best things you can do to secure the best plan for you. A licensed agent is familiar with both the companies and the plans themselves. To learn more about how an agent can help you, contact us at Senior Life Services today.
