Final Expense Insurance

Final expense is a type of whole life insurance that pays a death benefit to beneficiaries upon the policyholder’s death. The death benefit is intended to cover expenses associated with the insured’s death, such as a funeral or memorial service, cremation, or embalming and casket. Final expense insurance can ensure that your loved ones can spend time grieving and remembering you -- not worrying about funeral costs.

Suppose you already have a life insurance policy or have prepaid your funeral expenses. In that case, you probably don’t need final expense insurance. But if you don’t have a life insurance policy and are worried about leaving a financial burden on your family when you pass, final expense could be a great fit for you.

What Does The Death Benefit Cover?

Your final expense coverage depends on your specific insurance policy. Typically, the death benefit will be between $2,000-$50,000.

Death benefits are intended to cover expenses associated with the insured’s death (although technically, there are no rules, and beneficiaries can use the death benefit in any way they see fit). A few common expenses associated with death include:
• A viewing or memorial service
• Basic service fees
• Embalming and burial or cremation
• Transporting remains to a funeral home
• Cemetary plot
• Monument or marker
• Casket or urn
• Flowers

Funeral costs can add up quickly. In fact, in 2021, the average funeral costs between $7,000 and $12,000. Final expense insurance can ensure that your family isn’t left with a financial burden when you die and can focus their time on grieving and celebrating your life.

Who Can Get Final Expense Insurance?

Most people can easily qualify for this affordable life insurance option. You may be asked a few basic questions about your health, but you won’t need to have a medical exam to qualify. Generally, final expense policies are mainly for those who could not qualify for a traditional life insurance policy because of health reasons.

Types of Final Expense

Guaranteed issue is a special type of final expense insurance for people with serious health issues. Guaranteed issue policies do not require medical questions, medical records, or a medical exam to qualify, and they offer almost 100% approval. Still, they are a more expensive type of policy.

Simplified issue is another type of final expense policy for those who still can’t qualify for traditional life insurance but are considered to be a moderate risk regarding their health, rather than high risk. There still is no medical exam required with this policy, but you may have to answer a medical questionnaire.

Find The Plan That's
Best For You

Wondering If Final Expense is Right For You?

American Insurance Group can help you figure out the best option for protecting and supporting your family after you’re gone. We’re here to support you in making informed choices for your family’s future. So reach out for a free consultation today!