A final expense policy is a type of permanent life insurance policy. The big difference is that it’s smaller. A final expense policy is typically between $2,000 to $50,000 — meaning the beneficiaries receive between $2,000 to $50,000 as the death benefit. Anything higher than $50,000 normally falls under a standard life insurance policy. Read more to understand the popular limits for a final expense policy.
Final Expense Insurance vs. Life insurance
The main difference between final expense insurance and life insurance lies in the death benefit amount. Final expense insurance really only goes up to $50,000. Life insurance policies, on the other hand, start at a death benefit of around $50,000 and can extend into the millions of dollars.
On principle, final expense policies were made to address the end-of-life costs left by the policyholder. This typically includes the funeral costs, outstanding bills, medical debt, and mortgages. In contrast, life insurance policies were made so that the policyholder’s family could remain financially stable after he/she passes away.
Popular Companies’ Face Amounts
It can be difficult to know which companies are reputable. Below is a list of companies that have received a high rating from multiple rating companies. In no particular order, these companies are:
- Mutual of Omaha
- Foresters Financial
- Transamerica
- Royal Neighbors of America
- American Amicable
- AIG
- Americo
- Gerber Life
Explore each company in more detail to know what ages of applicants they accept and how large their policies are:
Mutual of Omaha
A.M. Best Rating: A+
New Applicant Range: 45-85
Face Amount Options: $2,000-$40,000
Foresters Financial
A.M. Best Rating: A
New Applicant Range: 50-85
Face Amount Options: $2,000-$35,000
TransAmerica
A.M. Best Rating: A+
New Applicant Range: 45-85
Face Amount Options: $1,000-$50,000
Royal Neighbors of America
A.M. Best Rating: A-
New Applicant Range: 50-85
Face Amount Options: $5,000-$25,000
Prosperity Life Insurance Group
A.M. Best Rating: A
New Applicant Range: 50-85
Face Amount Options: $2,500-$35,000
AIG
A.M. Best Rating: A+
New Applicant Range: 50-85
Face Amount Options: $5,000-$25,000
Americo
A.M. Best Rating: A
New Applicant Range: 50-85
Face Amount Options: $2,000-$30,000
Gerber Life Insurance
A.M. Best Rating: A
New Applicant Range: 50-80
Face Amount Options: $5,000-$25,000
Get Help from Senior Life Services
As you can see, there’s a wide variety in applicant ages and face amount options. This is why having a licensed agent can be helpful. Our life insurance agents are familiar with the companies, their policies, and their reputations. Most importantly, we can help you understand whether a certain policy is right for your needs. To learn more about how we can help, contact Senior Life Services today.
