With a few exceptions, your final expense policy will last as long as you are paying your premiums or until the policyholder passes away. Your question shouldn’t be “how long does a final expense policy last,” but “how long do I want my final expense policy to last?”
Final Expense vs. Term Life Duration
Final expense policies are very flexible in how long they last. Depending on your preferences, it can act as either a term policy or a whole life policy. This, of course, is in terms of duration, not of its benefits or stipulations.
Term policies are a type of life insurance that guarantees payment of a stated death benefit, but only if the covered person dies during a specified, predetermined amount of time. You can choose to renew the plan after this term, but if you choose not to and the policyholder does not pass away during said time, you will lose the death benefit and the premiums you made while you had the plan.
Compared to a term life policy, final expense offers much more flexibility. Say you have a timeline of 20 years for your insurance plan—rather than setting a schedule based on the policyholder’s death, you may opt for a final expense plan that follows the same schedule, but without this requirement for death or renewal.
And, if you’re in poor health, final expense policies may apply without a required medical exam. In this case, you may benefit greatly from a final expense plan. Both are very inexpensive options compared to other types of life insurance with fixed premiums, but a final expense plan may be better for you if you’re looking for a long-lasting plan.
Final Expense vs. Whole Life Duration
Whole life insurance will last the lifetime of the insured, making it a permanent option, unlike a term life plan. In addition to paying a death benefit, its cash value may accumulate over time. When comparing this to a final expense policy, keep in mind that whole life is far more expansive in coverage and expensive in cost. The payout and options with whole life are far greater than final expense, thus making its premiums higher. It also requires a medical exam for approval.
Both plans are, however, considered “permanent.” In other words, as long as you meet your premiums, you’ll receive coverage until the policyholder passes away. If you stop making payments, you could lose your coverage.
When deciding between a term, whole, or final expense life insurance policy, consider final expense as somewhat of a “happy medium.” It can last as long as a whole life policy or can be looked at as a term life policy without the risk of raised premiums or coverage renewal.
For Help Comparing Your Insurance Options, Contact Senior Life Services
Concerned over your life insurance options? We want to help—whether you’re worried if your policy will last long enough or reviewing your potential options, we have the insider knowledge to get you where you need to be. When you’re ready to get started, contact Senior Life Services.
