Final Expenses

It is not something we want to think about, but yes it will happen – we will die!  Most of us do not want to put a financial burden on our loved ones for expenses such as funeral costs! Final expense insurance is a type of life insurance generally purchased to pay part or all the funeral costs. It helps to ease the financial burden that often falls on family members.

What is the real cost of a funeral?  The National Median Cost of an Adult Funeral with Viewing and Burial (2019) is $9,135.00 – for more detailed information, click here (lots of information).  Many of us do not have the necessary “immediate” liquid assets to pay for this expense. A final expense life insurance policy is designed to provide this liquidity!  

One of the most stressful times for a funeral home is working with a family to determine how they will cover the cost for a quality funeral for their loved one!  The funeral home wants to provide the best services for the family, but they need to be assured they will be properly compensated for the costs.  Working with the family at this very stressful time, to find the money to handle the services, is very difficult for all parties!  With a life insurance policy, the Funeral Home can accept an assignment of a portion of the death benefits to cover the cost. The life insurance funds are usually received within about two weeks and the death benefits bypass probate and estate taxes! This eliminates a tremendous amount of stress for everyone!

Does everyone qualify for a Final Expense life insurance policy?  The good news is the life insurance industry sees the increase in the senior population and the need for this type of insurance coverage.  Insurance carriers are competing for your business!  Your health conditions are a primary factor in determining how the coverage will be issued.  Generally, there is no medical exam and, in many cases, a simple phone interview with the underwriting team will get the policy issued.  Policies offer level premiums and life insurance protection for as long as you live.

If you are in good health, a policy will be issued with immediate death benefit!  If you have health conditions that generally would not allow for the purchase of a life insurance policy, the coverage could be issued with an initial “modified death benefit”. An example would be if death occurs during the first two years, the plan will 110% of the premiums.  If death is due to an accident, full benefits will be paid.  There are other modified methods – generally we try to place the client with the best available policy.

Many of the plans can be issued up to age 85 with a death benefit needed to cover the expected expenses! The death benefit is generally paid to your personal beneficiary who would then have the fund to help pay for the funeral expenses. We represent a number of insurance carriers, which gives us the flexibility to find the best coverage! 

If you are interested in additional information please email or call me and we can discuss!

I also highly recommend that you look at the tab “Final Thoughts” on this website as a tool to help your loved ones though this stressful time of doing what they think you would want!