Final Expense Insurance

Is There An Age Limit For Buying A Final Expense Policy?

Final expense insurance or burial insurance is a form of whole life insurance where the death benefit is paid to the main beneficiary once the claim is approved. The payout is used to cover medical bills and funeral expenses when you pass. Funeral expense policies are popular with seniors.

Depending on the insurance company, most people can get coverage until they turn 85. Some insurance companies will insure individuals over the age of 85, but be prepared to pay a very high premium.

Considerations when buying too old

Generally, the longer you wait to buy a final expense policy, the more expensive the policy will be. Another pitfall of waiting too long is medical problems, and other risk factors may inflate the price of your policy and ruin your chances of securing coverage altogether. It is better to get a policy secured before any risk factors spring up. Not only will this force overhead costs down, but you won’t have to worry about becoming uninsurable.

Irrespective of the increased costs that come with age, if you need coverage at an older age, then go for it, because if the price is affordable and the need is genuine, then it’s not too late.

Considerations when buying too young

Many people ask if it’s crucial to buy final expense insurance at a young age. The answer is maybe. If you have no dependents, debt, or other financial obligations, you can forgo coverage. Conversely, if you have a young family or perhaps collegiate loan debt, you may need coverage, irrespective of your age. Insurance premiums increase as you advance in age. Once you fix a rate on a policy, it will not increase until that policy expires. 

Another aspect of buying young is the policy term length, such as 10, 20, 30 years. If you select a shorter term length, such as 10 years, the plan will terminate long before your insurable years are up. You’d need to replace it with a longer-term plan or permanent plan as you advance in age. Most term life insurance plans also allow you to convert to a permanent policy during a specific period or before a certain age. With a final expense policy, you won’t have to worry about renewing your coverage as final expense does not terminate. It will last for as long as you pay your premium.

Contact Senior Life Services today

Want to learn more about final expense and other aspects of insurance? Talk to the specialists at Senior Life Services. Through our far-reaching network and expertise, you can rest assured knowing that you’ll get the best coverage for your needs.