When looking for final expense insurance policies, it can be difficult to balance budget with quality. There are a few measures you can take to find the best rates. The first measure is to research insurance companies. The second step is to compare quotes online. And the last measure you can take is to find a qualified agent. Read more below to learn more about how to find the best final expense insurance rate option for you.
An Overview of Final Expense Insurance
Final expense insurance, also called burial insurance, is a type of coverage that’s meant to reduce end-of-life costs. It’s a type of life insurance plan with a smaller death benefit, typically between $2,000 and $50,000. In contrast, standard life insurance policies have a death benefit starting at $50,000 and extending into the millions. The main purpose of final expense insurance plans is to offer loved ones a way to cover end-of-life expenses. There are many costs that people leave behind: hospital bills, mortgages, and even the funeral itself. But a final expense policy can be used for any of these expenses, and more.
Final expense insurance works like any other private insurance plan. You choose a plan, sign the contract, pay the monthly premium, and your loved ones receive your death benefit upon your death.
Cost of Final Expense Insurance
Final expense insurance plans vary wildly in cost. The cost changes depending on the age, gender, smoking status, and health of the policyholder. It also depends on the size of the policy. Typically, people with a longer lifespan will pay less per month. This means that younger people, women, and nonsmokers will pay less per month. Depending on the variables, people pay between $50 and $400 per month, on average. This range can widen to include $15 – $575, depending on the person. Take a look at our brief listings below to understand the differences in rates.
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
A woman who’s 85-years-old and looking for a $10,000 policy with no waiting period can expect to pay $135.90. As stated above, age plays a major role in price.
Finding the Most Reputable Insurance Companies
One of the most overwhelming parts of picking a final expense plan is the sheer number of options. While an agent can help you find a reputable company in your area, you can get a head start by researching — before you meet with us. Here’s a list of companies in no particular order:
- Mutual of Omaha
- Foresters Financial
- Transamerica
- Royal Neighbors of America
- American Amicable
- AIG
- Americo
- Gerber Life
These companies are rated by multiple rating companies. A.M. Best provides the scores given below. The scoring system takes into account factors like history of paying claims and other financial obligations. Browse through the details of each company below.
Mutual of Omaha
A.M. Best Rating: A+
New Applicant Range: 45-85
Face Amount Options: $2,000-$40,000
Pros:
- No waiting period
- Low monthly rates
- Flexible options
- Accept some chronic diseases
Cons:
- Don’t accept all serious diseases
Foresters Financial
A.M. Best Rating: A
New Applicant Range: 50-85
Face Amount Options: $2,000-$35,000
Pros:
- No waiting period
- Low monthly premiums
- Flexible Plans
- Offer plans to people with mental health issues
Cons:
- Modified plan isn’t a good value
TransAmerica
A.M. Best Rating: A+
New Applicant Range: 45-85
Face Amount Options: $1,000-$50,000
Policy Type: whole life insurance
Waiting Period: No
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-
New Applicant Range: 50-85
Face Amount Options: $5,000-$25,000
Pros:
- No waiting period
- Flexible plans
- Low monthly premiums
- Best for seniors with diabetes
- Good for people with other serious issues
Cons:
- Doesn’t offer guaranteed acceptance plans
American Amicable
Prosperity Life Insurance Group
A.M. Best Rating: A
New Applicant Range: 50-85
Face Amount Options: $2,500-$35,000
Pros:
- No waiting period
- Includes people with serious mental health disorders
- Good premiums for tobacco users
- Doesn’t include cigar or pipe users as tobacco users in its algorithm
Cons:
- Smaller range of coverage
AIG
A.M. Best Rating: A+
New Applicant Range: 50-85
Face Amount Options: $5,000-$25,000
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
New Applicant Range: 50-85
Face Amount Options: $2,000-$30,000
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
New Applicant Range: $5,000-$25,000
Face Amount Options: 50-80
Pros:
- Guaranteed acceptance plan
- High interest rate with refund
Cons:
- 2-year waiting period – typical for many guaranteed plans
- Smaller range of coverage
Comparing Plans Online
Many insurance companies will have tools online to compare plan prices and to obtain quotes. While it does require you to go through a number of websites, doing the work individually can help educate you on what expenses you can expect with your plan. Below are solid online quote generators:
Work with a Final Expense Agent
Final expense agents are an invaluable resource. We know the companies, the plans, and the reputations. Plus, we can help you get the best insurance policy for your needs and budget. Talk to an agent at Senior Life Services to get started.
