Final Expense FAQs
Final expense, also referred to as burial or funeral insurance, is a type of permanent whole life insurance. These policies are meant to cover the costs associated with the insured's funeral expenses, however, the death benefit payout is flexible.
The applicant will take out coverage for the amount needed. Once this permanent policy is active, the insured will pay the monthly premiums, which never increase. Upon the insured's passing, the beneficiary will file a claim and receive the lump-sum payout within a few days.
Insurance companies use these terms interchangeably to market their product. There is no difference between the three names.
Traditional life insurance payouts replace an individual’s income and often require a medical exam. Burial insurance is meant to cover the costs associated with the policyholder’s funeral expenses. It is a much more affordable alternative to a traditional whole life plan, and no medical exam is required.
Depending on where you live, funeral expenses can vary drastically. The average burial cost is $7,643, and cremation is $6,280. These estimates do not include a headstone, burial plot, or other celebration of life wishes.
Most applicants pay between $40 - $60 per month. This monthly cost is highly influenced by the applicant's age, gender, coverage amount, and pre-existing health conditions. With that said, the price that each person pays could be much higher or lower than this average.
The payout is distributed in a tax-free lump-sum amount. While this money is intended to cover funeral costs, the beneficiary can use it for anything deemed necessary. Typical items the payout goes towards are casket, funeral director fees, burial plot, outstanding bills, etc.
For those who have not set aside funds for inevitable end-of-life expenses, funeral insurance is absolutely essential. This simple plan is available to seniors for an affordable monthly payment. Funeral coverage assures your loved ones that the financial resources will be available.
Several factors will determine which plan you can qualify for, but the most important is your medical history and pre-existing conditions. The better health you are in, the lower price you will pay. To fully understand your coverage options, contact a licensed agent.
Final expense has a simplified approval process with premiums that never increase and a death benefit that never decreases. This permanent policy builds a cash value over time. The claim process is swift, and the financial distribution has no restrictions.
Those with a terminal illness are only eligible for a guaranteed issue plan. This plan does not ask medical questions and has a two-year waiting period. If the insured passes away before the waiting period is over, the beneficiary will receive all premiums paid plus ten percent.
Seniors can purchase funeral insurance over the phone from a licensed agent, and the application takes approximately 20 minutes. To secure the lowest price, you will need to answer basic medical questions. Upon completion of the application, coverage will be issued within days.
Willamette Life represents the most affordable and highest-rated insurance providers on the market. Our competitive advantage comes when we compare prices between multiple carriers to find the policy that best fits your individual needs.
Upon filing a claim, the beneficiary will quickly receive a lump-sum, tax-free payment. Always consult your tax advisor to obtain the best guidance for your specific financial situation.
Social Security gives a maximum survivor benefit of only $255 for funeral costs. Since the price of a traditional service is between $8,000 - $12,000, it is not recommended that you rely on this payment for your final expenses.
Final expense insurance policies are issued to people between 45 - 85 years of age, and every applicant will qualify for a plan. However, the healthier you are, the lower your monthly premiums will be.
Final expense insurance never expires. However, initial coverage will typically be issued until 85 years old. With that said, select carriers will continue accepting policy applications for seniors until the age of 89.
When taking out a final expense policy, you are purchasing financial protection for your loved ones. This protection allows them to honor your life rather than taking on the burden of your final expenses. The beneficiary will have the resources needed within days of filing the claim.
Each month the policyholder is required to make a payment. In exchange for this monthly payment, the insurance company provides financial protection. The money paid each month to the insurance company is called an insurance premium.
The application is completed entirely over the phone. From start to finish, the process takes approximately 20 minutes, with email access required. By answering favorably to the health questions, you can receive the lowest rates and best policy structure.
Age, health, gender, and desired coverage amount will dictate which policy type you should apply for. It is in your best interest to answer the medical questions on an application. Doing this will give you the best chance to qualify for a lower monthly premium and better plan structure.
Funeral insurance premiums for smokers are on average 40% more than non-smokers when applying for the same coverage. Most insurance providers consider an applicant a smoker if they have used tobacco products within the last 12 months.
Traditional life insurance takes roughly 30 days for distribution. With final expense, the carrier will have the payout facilitated much quicker. In some cases, this can be less than 7 days from when the insurance provider receives the death certificate.
Many insurance companies offer plans with small coverage amounts designed to pay for inevitable end-of-life expenses. For a simple and affordable monthly payment, your family will have the financial resources needed to celebrate your life.
Every insurance provider has unique underwriting standards, which makes the top plan different for each applicant. Health, age, gender, and coverage amount will dictate which company is best for you.
Not all funeral insurance plans have a waiting period. For applicants with complex or chronic medical conditions, a waiting period allows seniors to receive coverage. Insurance companies will place a two-year waiting period and higher premiums on the policy to offset their risk.
An accidental death would be any death caused by accident, not by natural causes. An example of accidental death would be a car or skydiving accident. A non-accidental death would be a death due to natural causes. Examples of non-accidental deaths would be cancer, heart attack, stroke, aneurysm.
Simplified issue underwriting does not require any doctor visits or medical exams, allowing for a streamlined application process. From the comfort of your own home, you can apply for a burial insurance policy. The only items needed are phone and email access.
Seniors who do not have money set aside for their end-of-life expenses should view funeral insurance as a necessity. Offering an easy and cost-effective way to save for the expenses associated with death, this product will relieve any financial burden your family would otherwise take on.
Our goal is to educate the community on final expense insurance products. Once someone is ready to move forward with the application process, they will be working with a Willamette Life customer service representative. Each representative is state-licensed and will be happy to provide their license number.
The insured and insurance provider enter into a contractual agreement when coverage is taken out. The contract states the amount of money the beneficiary will receive from the carrier once the insured passes away. The payout given to the beneficiary is considered the policy's death benefit.
While working directly with the carrier seems logical and more streamlined, this can be a costly mistake. Respected independent agencies have access to the same plans as the insurance carriers. These agencies can compare prices from multiple companies so you can be confident that you secured the lowest price.
Your beneficiary will receive the resources needed to celebrate your life for simple and low monthly payments. This permanent coverage allows you and your family members to be prepared for the inevitable while knowing your coverage will never expire.