it's easy to qualify for final expense insurance!

Why You Should Consider Final Expense Insurance

Final expense insurance is an excellent option for individuals seeking easy-to-qualify-for life insurance with a bigger payout than burial or preneed. Don’t let these unknown terms confuse you—there is a lot you need to know before you can fully understand all of your insurance options.

You should familiarize yourself with the ins-and-outs of final expense insurance before deciding if it’s right for you—here are some of the reasons you should consider final expense insurance.

Final Expense Insurance Is Easy to Qualify For

Unlike other insurance policies such as whole life, final expense insurance does not require something referred to as medical underwriting. During this process, you must answer various questions about your health that will determine your eligibility.

Answering “yes” to even one question on this form would disqualify you from any other plan. However, with final expense, you can opt for a much less strict underwriting form or skip the process entirely.

There are two different subtypes of plans within final expense insurance you may enroll in—simplified issue and guaranteed issue. Neither of these plans requires a medical exam to qualify. 

With simplified issue plans, you will only have to answer a short questionnaire about your health—much less of an intensive examination that would be required by your typical whole life plan. Your payout amount can be between $2,000 and $40,000, and you typically must be between 45-80 years to qualify.

Guaranteed issue, on the flipside, does not require a medical underwriting form at all. It is a perfect option for those with severe health conditions that would disqualify them from almost every other life insurance policy. These plans offer a payout of anywhere between $2,000 and $25,000, and you must typically be between 50-85 years old.

It Can Cover More than the Funeral

Final expense insurance offers more coverage than a burial or preneed plan, though it can be used for virtually the same purpose. Burial insurance policies are geared towards paying funeral costs but are issued to a chosen beneficiary and can be used in other ways.

On the other hand, Preneed is purchased directly through a funeral home and can only be used for funeral expenses. Compared to both of these options, final expense insurance offers a far higher payout. 

Typically, the payout for burial insurance is between $5,000 and $25,000. Funeral insurance, however, can be anywhere between $3,000 to more than $10,000, depending on your chosen arrangements.

Final expense insurance can have a payout anywhere between $2,000 and $50,000. Then, it has the potential for a far greater death benefit than the other easy-to-qualify for alternatives. It may, then, not be as high as a larger policy, but it is a much bigger option than burial or preneed insurance, with the chance to put its payout towards funeral fees if necessary.

It’s More Affordable than Larger Policies

The other life insurance options generally include whole and term life policies. Whole life insurance is a permanent plan that also includes a savings method that may earn you more money over time. Generally, because these plans are stretched out over a lifetime, the premiums are relatively low, considering the high death benefit.

However, not everyone meets the strict qualifications for a whole life policy. So, while it may have a lower month-to-month premium than a final expense plan, that is no good if you do not qualify for it. Also, for those with serious health issues, the premium for final expense coverage is meager compared to other potential insurance options.

Your monthly premium under a final expense plan is also likely to be more reasonable than a term life plan. Both types of coverage will base your premium on your age. However, term life policies may require a medical exam and consider your health history and even life expectancy.

Term life plans are also not permanent like final expense plans. You set the length of which your plan lasts—if the policyholder does not pass away during this term, you must either renew it for another term or lose the payout and paid premiums. 

If you must renew the term, your premium will increase accordingly. This is unlike a final expense plan, whose premium will remain the same throughout the plan.

Overall, then, final expense policies are a relatively affordable option compared to other life insurance options. Coupled with the fairly simple qualification process and requirements, it’s an excellent choice for many middle-aged and elderly individuals.

You Can Set the Payout You Want and Your Beneficiaries

With final expense insurance, you may choose your payout amount up to about $50,000. This may be less than other life insurance policies, but are still a viable option for those in poor health or older.

If you have poor health, final expense is a fantastic option to receive some coverage. Without final expense, there would be almost no life insurance policies that would provide coverage greater than maybe $25,000 (with burial insurance).

And, unlike preneed insurance, you get to choose your beneficiary and how your payout is used. Preneed requires that all of your death benefit goes towards the funeral home, while final expense allows you to cover the funeral, medical fees, inheritances, etc., if you so choose.

Overall, then, it’s generally a more flexible, higher payout option than the other types of plans you may qualify for.

Let Our Licensed Team Do the Work for You

Don’t leave you and your family’s well being in the hands of an uncaring company—you want to work with real people who care about your security and peace of mind. Our team of licensed insurance agents will work with you to give you a quote that not only supports your insurance goals but exceeds them.
If you want to learn more and get your personalized free insurance quote, call Senior Life Services at (800) 548-3249.