The Ultimate Guide For Final Expense Life Insurance

Last Updated April 23, 2024

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Ultimate Guide For Final Expense Life Insurance

Life is a series of unexpected things. You know that every single day is going to be different, and all you can really do is plan as much as you can and hope that things work out the way you were hoping they would. While ordinary things in life can be dealt with every step of the way, if there’s one thing that one can’t really plan for too much, it’s death. 

Death can come to any of us at any point and won’t wait no matter what’s going on. That also makes it one of the most important things you can plan for in your life, and the best way to do that is with final expense life insurance. 

This post has been created to serve as the ultimate guide for funeral expense life insurance so you can rest assured that no matter what happens, your final expenses will be taken care of.

What is Final Expense Insurance

Final expense insurance is the type of insurance that’s in place to cover the funeral costs after your passing. This is the type of coverage that you can apply for, and once you’re approved, your family will be entitled to the payout immediately, no matter how early or late your passing might be.

While final expense coverage is generally used to cover funeral/burial costs, one may use the funds in any way desired. In this way, some brokers claim that there is essentially no difference between final expense insurance and another regular Term Life Insurance. In a way, this is true, as either way you’re relieving any potential financial burdens regardless of your coverage. Final expense coverage usually exists as a simplified issue plan, meaning that you are approved regardless of any previous medical conditions, 99% of the time. The premiums are also generally low (depending on the condition of the applicant) and whole life, meaning that your rate does not change within the span of your lifetime.

Additionally, these plans can coexist with Medicaid, depending on your total assets. If said assets are too high to qualify, one may use these funds to purchase additional coverage or what have you, maximizing your beneficiaries’ payout.
The Ultimate Final Expense Life Insurance Guide

Why You Need Final Expense Insurance

Here are some of the reasons why you need final expense insurance:

For your peace of mind

Thinking about a time when your family may have to grieve your loss is extremely difficult. Add to that the worry about having to pay for the funeral as well! No one wants their family to have to deal with two major things at once, and the final expense insurance will take care of one, so they can focus on being there for each other instead.

To make sure everything happens your way

Even though this is a dark thought, almost everyone has some wishes regarding their own funeral. There are simply too many options, Casket, no casket, which type of casket, colors, themes, and so much more that you might end up getting lost in all of it.

On the other hand, your family might end up feeling the burden of having to figure out what you might’ve wanted, which can be overwhelming too. When you get final expense insurance, you can also decide exactly how you would like your funeral to be. So if something were to happen to you unexpectedly, the plans would kick in, and your family would have to show up.

To take care of your loved ones.

Final expense insurance payouts can go up to $50,000, so even if your funeral doesn’t end up costing that much because of the choices you’ve made, a large chunk of that money can still go to your family. This will allow them to  grieve in peace without having to worry about keeping money coming into the house.  

How Much Do Funerals Cost?

Funerals can get pretty expensive. On average, the costs can run up to anywhere from $7,000 and $12,000. What’s even more shocking is that this only includes the funeral proceedings, not the burial service or the grave itself. With everything else, you can expect the costs to run upwards of $20,000 as well. It’s not uncommon for funeral costs to blindside fresh beneficiaries, as the aspects involved are not inherently clear

Beginning at square one, funeral homes ask that you reserve their services for a fee. If all goes well, a funeral director may be appointed to your beneficiary and from here the disposition will be discussed. Immediately, we’re faced with a $2,000-$2,500 fee, on average, to begin the process. Disposition, in this case, may involve anything from funeral embalming to how the remains will be handled. Depending on the process chosen, one may expect, on average, $6,000-$7,000 for cremation or burial. Embalming for a funeral involves aiding the deceased in looking as best as possible, and these services usually live around ~$1,000. From here, one may consider location and respective clergy, and any final touches.

When put this way, it’s easy to see why funeral costs average $10,000 and can max out at over $20,000. When discussing options with your broker, consider final expense coverage to ensure a comfortable future for your beneficiaries!

How Much Does Cremation Cost?

Cremation services can cost anywhere between $2,000 to $7,000, depending on the funeral home and the type of funeral you choose to have. Direct cremation is usually cheaper, and cremation with a casket comes at an added cost. There are other factors involved depending on the type of cremation, as well as other services that can be added to the process.

It’s completely possible to cremate a body, free of ceremony or burial. If this process is chosen, generally the family member will receive a burial urn with the ashes inside. This urn can further be customized or changed depending on the desired result. The same can also be done with a casket, further increasing costs. On average, urns can range from $100-$400, with rental caskets ranging anywhere from $35-$2,000, depending on the extravagance of each. If only cremating a body free of memorial/burial, this process is called direct cremation and generally averages out to between $2,000 to $5,000. Additional services such as a memorial/traditional ceremony further increase this cost to upwards of $7,000.

If impartial to the result, one may also cremate for free and donate the body to science. If donated this way, researchers will utilize the body for scientific purposes, in which the body is then returned to its rightful family. Certain factors such as cause of death, disease, etc., can affect the validity of the body, in which researchers may deny this service. Ultimately,  cremation free of ceremony/burial will produce the cheapest funeral cost.

What's the best $10,000 Burial Insurance Plan?

Final Expense Insurance comes in a wide range of coverage options, generally beginning at $2,000 and capping out at $50,000, although this may vary. Now, you might be thinking, why would I need ANOTHER plan? I already have one. Well, Final Expense Insurance can exist within an extremely low monthly premium. For example, a 67-year-old woman, at 5’4, 160 lbs., would be able to claim a $10,000 plan for as little as $45 a month. Which, regardless of circumstances, will remain at this fixed rate for the remainder of said person’s lifetime. If say, a woman of similar stature participated in a $10,000 policy, as stated above, for just 5 years, they wouldn’t have paid for even half of the $10,000 amount whilst still being entitled to their coverage amount, regardless of intent.

It may be surprising to think about, but over 70% of Americans die with pre-existing debt. This debt may contain anything from student loans, credit card debt, loans that have accrued too much interest, what have you. Unfortunately, this debt does not disappear upon the recipient’s death and is then paid accordingly after liquidating any applicable assets. It’s not too uncommon, in this case, for any beneficiaries to be left with no money leftover and potentially accumulating debt. Fortunately, final expense life insurance aims to mitigate these losses in the case of debt that simply cannot be paid with assets/coverage alone. 

Ultimately, coverage options vary depending on the individual. Regardless of the choice made, it’s always a good idea to partake in Final Expense Insurance, considering premiums are low and the money can be used for anything the desired party may need it for.

Company 50 y/o Male 50 y/o Female 60 y/o Male 60 y/o Female 70 y/o Male 70 y/o Female

*Guaranteed issue life insurance with no medical questions

Can I get Life Insurance Without a Medical Exam?

With average life insurance, you’re almost always required to go through an extensive health check-up, and only if you have no pre-existing conditions do you get to have the life insurance coverage. However, this is not the case with whole life insurance or final expense insurance.  With these, you can apply, and usually, you don’t even have to meet with the company; just answer some of their questions, figure out a plan that would work for you, and you’ll be all set! Sure, if there are any major health concerns, you might be considered at higher risk and may have to pay a higher premium, but it won’t become a barrier for you to get the insurance itself. It’s totally possible to get life insurance without any medical examination at all.

Final Thoughts

Getting final expense life insurance is one of the best ways to rid yourself of the worry of making sure that you don’t end up burdening your family with having to deal with loss and a financial burden all at once. Receiving a “care package” after the fact only aids in mitigating beneficiaries’ grief, and leads to your legacy shining in a positive light. If you’ve dealt with loss before, imagine how you felt in that moment regardless of coverage or outcome – anything to minimize the pain is welcomed gladly.

The information outlined in this article should answer your questions about final expense insurance, so all that’s left to do is decide if it fits your plans and call in for a custom quote for yourself! Even if you’re unsure, I’d urge you to give us a call anyway, as there is no pressure in actually purchasing the plan – our agents exist only to guide you to a plan that perfectly fits your lifestyle.

Frequently Asked Questions

I already have a whole life insurance policy, why do I need final expense?

Let’s put it this way. Funerals are expensive, and you get that. Considering final expense coverage options aren’t expensive, you would trade a minor monthly expense to ensure your beneficiaries are secure.

Are two life insurance policies necessary?

Necessary is debatable. We’d recommend asking yourself, “could we handle funeral costs comfortably?” if the answer is no, final expense options are a great idea considering the low monthly cost.

Will my monthly payment be too high?

Not at all. Final expense coverage generally ranges between $30 and $70 a month, on average. Factors that can affect this price include height, weight, age, preexisting conditions, etc.

How to pick a funeral home for cremation?

The two most apparent concerns are the cost and services offered. It’s important to conclude what you’re looking for before anything else.

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