final expense plans are easy to qualify for

Why Should You Consider Final Expense Insurance?

Final expense insurance is a cheaper, permanent option to other life insurance plans, and is a great option for you to consider. Here’s a closer look at its pros and cons as it compares to other insurance plans.

What Are the Benefits of Final Expense Insurance?

Final expense plans are intended to help people cover certain fees after they have passed away, including funeral costs, remaining debt, and/or an established inheritance. However, one of the benefits of final expense plans is that the policyholder can use it for other expenses while still alive. While its main function is the death benefit, a payout that can range from several thousand dollars up to $50,000 or $75,000, it can also cover medical bills, probate or legal fees, and more.

Another notable benefit of final expense plans is that they are incredibly easy to qualify for, even if you are in poor health. Within the category of final expense, there are two options—guaranteed and simple issue.

Guaranteed issue is one of the easiest life insurance policies to apply for. Regardless of your health, you will more than likely be accepted by a plan—your monthly premium may increase, however, based on your age and health.

Simplified issue, on the other hand, requires a few more qualifiers but is still comparatively very easy to apply for. You will be asked about your recent medical history (not including pre-existing conditions) and certain lifestyle questions, including your careers and hobbies, to determine your risk factor and therefore your monthly premium.

However, although final insurance plans may raise your monthly premium at the time you apply, it is still significantly less than other options. And, your premiums are set, meaning they will not increase over time. All things considered, final expense insurance offers a lot of benefits to those looking for an inexpensive, efficient life insurance policy.

Final Expense vs. Pre-Need Insurance

Pre-need life insurance plans are intended to cover funeral and burial or cremation costs. When you sign up for a plan, you will work directly with a funeral home of your choice and determine all the elements you want in your funeral, from the casket to the flowers.

This plan is a great option for many, as it allows a particular plan at a low cost. It does not, however, offer as much flexibility as a final expense plan, with a lower death benefit only geared towards the previously mentioned funeral costs. In general, pre-need plans:

  • Are purchased from a specific funeral home
  • Are priced-out and paid ahead of time to said the funeral home
  • The cost of guaranteed services will always be covered by the funeral home
  • Non-guaranteed services may need to be made up by the beneficiary
  • Details are dependent on the individual funeral home

For comparison, final expense plans:

  • Are purchased from a life insurance company, not a funeral home
  • You choose the beneficiary who receives the death benefit, not the funeral home
  • Benefits are more flexible and can be used for more than just funeral arrangements
  • Benefits are not tied to a funeral home
  • Insurers will not change the terms of your plan, while pre-need plans could vary.

Choosing between a pre-need and final expense plan, then, depends on where you want your premiums to go—if you want to build up your plan over a longer period to cover funeral and other expenses, you want a final expense plan. If you would rather have your funds go directly towards one final cost (i.e. your funeral service), you may prefer a pre-need plan.

Final Expense Insurance Comparison

Final expense insurance is inexpensive and easily accessed by your loved ones after your death. It’s a great option, then, for many beneficiaries. But, to fairly consider final expense insurance, you must be aware of all of your other options.

Term life is insurance that you pay into for years. As long as you pay your monthly premiums, you will receive the set death benefit when you pass away. While the death benefit for term life is higher than final expense plans, it may have a higher premium.

Whole life insurance is more expensive than term or final expense insurance. However, a higher cost does not come without perks—whole life plans are permanent with a significantly higher death benefit.

And, if you have a large amount of money you would like to contribute to your death benefit, a final expense plan may not be your best option, as it has a much smaller payout compared to other plans.

Also, if you’re at a high health risk, you may want to be cautious in choosing a final expense plan. In most cases, this is a great option for those in poor health, as there are no required medical exams needed for approval. But, if you’re older, you must be careful choosing a plan and a company, as they will likely charge a higher premium than another plan might.

Ready to Sign Up for a Final Expense Plan?

A final expense plan is a great life insurance option—with easy accessibility, low monthly premiums, and high flexibility compared to many other plans, it may be worth it for you to consider this an option for your coverage needs.

If you have decided on a final expense plan but aren’t sure where to start, we can help. Or, if you still need help talking through your other options, we can help you with that, too. Senior Life Services has the expertise to guide you through the entire insurance process from start to finish. For all of your life insurance questions, our team is here for you. Whenever you are ready to get started, we’ll be here—contact Senior Life Services today.