FINAL EXPENSE

Final expense life insurance, also known as burial or funeral insurance, is a type of life insurance policy designed to cover end-of-life expenses, such as funeral costs, burial, and other related expenses. These policies generally have lower coverage amounts compared to traditional life insurance, typically ranging from $5,000 to $25,000. The primary goal is to ease the financial burden on loved ones by ensuring that these costs are covered.

Key Features:

  1. Simplified Underwriting: Often, final expense policies do not require a medical exam. Applicants typically answer a few health-related questions instead.

  2. Whole Life Insurance: Most final expense policies are whole life insurance, meaning they last for the policyholder's entire life, as long as premiums are paid. Premiums are usually fixed for life.

  3. Guaranteed Acceptance: Some insurers offer guaranteed issue policies, which means the policy is issued regardless of health conditions, though these may have a waiting period before full benefits are available.

  4. Affordability: Premiums are usually affordable, but since coverage amounts are relatively low, it's tailored to cover final costs rather than providing large sums for other purposes like income replacement.

  5. Use of Funds: Beneficiaries can use the payout for any purpose, not just funeral expenses, though the intent is often to cover costs like:

    • Funeral or memorial service

    • Cremation or burial expenses

    • Medical bills or other debts

It's a practical option for people who want to ensure that their family members are not left with large bills after they pass away.