![]() ![]() For example, your premium might be only $10/month. While it may be true that final expense premiums are low, there’s a good reason for that-because per dollar spent, you’re getting less coverage. ![]() Knowing that end-of-life is a sensitive subject and that most people want to do right by their families, some insurance companies will try to sell you final expense insurance by talking up its lower premiums compared to other kinds of policies. ![]() ![]() The premium amount for final expense insurance is higher per dollar of coverage than what you’d pay for the same benefit amount with other types of life insurance.īuyer beware here-final expense insurance is a classic emotional purchase. How Much Does Final Expense Insurance Cost? Insurance companies take on more risk with this type of policy, so they often make it up in several ways: Guarantees are nice, right? Just know you’ll pay higher premium costs and be restricted by a lower life insurance payout cap (usually $25,000). And like simplified final expense insurance, there’s no medical exam and an even shorter medical questionnaire (or none at all). Guaranteed final expense life insurance is easier to get than simplified-you can get it even if you have a serious health issue. The not-so-good news? The premiums tend to be higher and coverage amounts are lower than traditional life insurance. It’s usually for people who need life insurance right away, people who were denied traditional life insurance, or for those who don’t want to go through a medical exam. The good news is you can get simplified issue life insurance simply by filling out a medical questionnaire (medical exams aren’t necessary). Each varies slightly in how much coverage you can get, how much you’ll pay for it, and how much medical information you’ll need to provide. There are only two types of final expense insurance: simplified and guaranteed. We’ll explain why later, but first let’s go over the different types of final expense insurance. Typically, you don’t even need to have a medical exam-that’s a big deal if you have health issues! Plus, the 2021 average cost of a funeral with a viewing and a burial was $7,848-so a little help would go a long way! 1īut while insurance companies make it sound enticing, and it does make sense to set aside money for end-of-life costs, final expense insurance isn’t necessarily the best option. You can get approved more easily than you can for most insurance policies. Older adults usually buy final expense insurance (aka burial insurance, funeral insurance, and simplified issue or guaranteed issue whole life insurance) to help their surviving loved ones pay for their end-of-life expenses. The monthly premiums are advertised as low, and it doesn’t require a medical exam. It’s designed to help loved ones pay for an older adult’s end-of-life expenses. But everyone needs answers for those questions sooner or later.Ĭhances are you’ve heard about something called final expense life insurance. How’s your health, for one? And while we’re at it, here are a couple more nobody wants to think about-what will happen when you die? Who’s going to pay for medical costs and funeral expenses? No, they’re not popular dinner topics. There are also some important questions to ask. Of course, even empty-nest-hood’s not all fun and games. Great news, right? Raising them has been fun, but now that they’re gone, you’ll have time to focus on so much stuff you had to put off before. The kids are finally grown and have their own families. ![]()
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