Top Facts About Final Expense Insurance for Seniors In 2020

final expense insurance for seniors headstones and pink tulips

Top Facts About Final Expense Insurance for Seniors In 2020

If you haven’t yet planned for your end-of-life expenses yet, that’s alright, you have options!

Did you have a policy with your former employer but now that you are retired, you aren’t sure where to start? Not worried about providing the income replacement that larger policies are designed for but still want to make sure your debts are covered and that you do not leave your family with a financial burden? Or perhaps you have a current policy and want additional coverage?

You are in luck!

Final Expense Insurance was designed specifically for seniors like you!

Final Expense Insurance for Seniors

This product was created specifically to help pay for end-of-life expenses as needed. Whether you want a large traditional service or you need to pay off some remaining debt, your beneficiary can use this money to their discretion given your final wishes.

This is why the coverage amounts are lower than other kinds of policies.

What type of insurance is Final Expense?

It is a whole life policy, this means that the policy lasts for your entire life.

It will not terminate, expire, or change prices like other policies.

This is one of the most straightforward products in the industry.

Step 1: Take out a policy with the coverage you need

Step 2: Make monthly payments

Step 3: When you pass away your beneficiary receives a tax-free lump-sum check for the coverage amount

Some important benefits to the plan:

  • Coverage is locked in for life
  • Monthly payments are locked in for life
  • The policy builds a cash value
  • The policy does not expire

We will get into additional benefits and the details of each benefit later in this article to help you determine if Final Expense Insurance is a good idea for you!

What is the Senior Final Expense Program?

Salespeople in the industry might refer to this type of life coverage as the “Senior Final Expense Program” but they are referring to insurance and using different verbiage to make it sound like it is a new program that you may have not heard of.

This is intended to pique your interest in purchasing a policy.

final expense insurance for seniors winning a chess match

How Much Does it Cost?

Cost is an important determining factor when purchasing something this important, and the answer is: it depends. With that said, the average price people pay is around $50 a month.

However, it could cost more or less given the following:

  • Age – your age when the policy is taken out
  • Health – the better your health, the less your monthly payments will be
  • Coverage – the more coverage you have, the higher your monthly cost will be
  • Gender – woman pay less than men

How old can you be and still qualify for coverage?

The typical coverage age is marketed to people ages 50-85. However, some companies begin coverage at age 45 and accept new applicants up to 90 years old!

The older you are when you take a policy out, the more you should expect to pay each month but just remember that the monthly rate is locked in for life.

Recommendation: Take the policy out sooner rather than later as you will be able to lock in a lower monthly rate and will most likely be in better health, thus qualifying for a more cost-effective plan.

Below are some estimated price ranges for both men and women. Alternatively, you can visit our “Get Started” page or call us to get a more accurate personalized quote. 833-518-0080

Sample Quotes:

Male

*Monthly Premiums

Age$10,000$15,000$20,000
45$26 – $46$37 – $68$48 – $89
50$29 – $58$42 – $77$55 – $101
55$35 – $65$51 – $84$67 – $125
60$43 – $69$62 – $99$82 – $138
65$56 – $86$82 – $125$108 – $184
70$73 – $117$108 – $150$143 – $215
75$99 – $169$148 – $207$196 – $303
80$133 – $246$197 – $368$262 – $539
85$183 – $322$273 – $473$363 – $693

Female

*Monthly Premiums

Age$10,000$15,000$20,000
45$22 – $34$32 – $49$42 – $64
50$24 – $46$35 – $53$46 – $74
55$28 – $51$41 – $64$54 – $95
60$33 – $53$48 – $74$62 – $110
65$41 – $65$60 – $91$79 – $135
70$53 – $84$78 – $110$103 – $164
75$72 – $123$107 – $160$141 – $235
80$98 – $175$146 – $262$194 – $383
85$132 – $232$202 – $298$269 – $437

*Price ranges are based on your health at the time of application. These prices are for both ends of the spectrum.

Good Health = Lower Rates

3 Best Companies

Who Has The Best Final Expense Insurance?

It is difficult to select one best company because everyone’s situation is different. The best for you could be different than the best for your friend, neighbor, or spouse. It is important to work with an agency that specializes in the niche of Final Expense and has your best interest at heart.

Below are the top 3 companies for someone who is in good to average health with no major medical concerns. These companies are on top because they are reputable, have very competitive rates, and offer living benefits.

There are many other companies that offer great products as well, so if you do not qualify with your preferred company you will still have options!

#1: Mutual of Omahafinal expense insurance for seniors mutual of omaha black and white logo

Mutual of Omaha has been in business since 1909, so for over 110 years! They have an A+ financial business rating. Among other things, this means that they take care of the people they insure by paying out claims quickly and consistently.

Mutual of Omaha’s product is called Living Promise with the eligibility age being 45-85.

If you are in good health, this is absolutely the company that you want to take out your policy with.

Plan Benefits:

  • Can Apply Over the Phone
  • Accepts Seniors Over 80
  • No Waiting Period
  • Coverage is Locked in
  • Monthly Premiums are Locked in
  • Builds Cash Value (Allowing the option to take a loan out against the policy in the future.)
  • Accelerated Death Benefit -Included at No Additional Cost (This simply means that if you are diagnosed with a terminal illness or are expected to be in a nursing home for the remainder of your life a portion of the policy can be paid out early.)
  • Accidental Death Benefit -Additional Coverage Option (This doubles the coverage of the policy if you were to pass away due to an accident. This is usually only a few bucks more a month.)

Potential drawbacks:

  • Must be in Good Health to Qualify
  • Automatic Bank Draft is Required (You cannot use your direct express card)

They offer both Level and Graded plans.

In short, Level comes with day one coverage while Graded has a 2-year waiting period before full coverage can be awarded. Level coverage is also less expensive than Graded. To learn more about the differences in plan types visit “The Plans” page on the main menu or read our full Mutual of Omaha Final Expense Review.

Overall, if you can qualify for Mutual of Omaha’s Living Promise Level, this is the best option.

#2: Foresters Financialfinal expense insurance for seniors foresters financial logo black and white

Since 1874 Foresters Financial has been helping families just like yours with their financial needs. That’s over 145 years which shows their history and commitment to excellence and is how they have been able to obtain an “A” financial business rating.

Foresters is a fraternal organization which means that they give back to the community and offer other positive, uplifting programs to their customers.

If you are between the age of 50-85 are eligible for their plans. They call these plans “PlanRight”. They have both their Preferred and Standard plans that are considered Level and come with day one coverage.

They also offer a “Basic” plan which is Graded coverage and has a 2-year waiting period before the full death benefit can be paid out. If you pass in the first two years you will get the premiums you have paid +10% returned to your beneficiary.

Plan Benefits:

  • Can Apply Over the Phone
  • Accepts Seniors Over 80
  • No Waiting Period Options
  • Coverage is Locked in
  • Monthly Premiums are Locked in
  • Builds Cash Value
  • Member Savings and Wellness Program
  • Accelerated Death Benefit -Included at No Additional Cost
  • Auto Premium Loan (So if there was ever a month you could not pay, the cash value built into the policy can help pay for these missed payments.)
  • Accidental Death Benefit -Additional Coverage Option (This can up to double the coverage of the policy if you were to pass away due to an accident. This is usually only a few dollars more a month.)

Potential Drawbacks:

  • Only Automatic Bank Draft Accepted (You cannot use your direct express card)
  • If you have a health condition that they consider to be a high risk you may not qualify for day one coverage or you may have a higher monthly cost.

Overall, Foresters is a fantastic company to take out a policy with and accepts several health conditions that other companies may not, still with no waiting period.

#3: Royal Neighbors of Americafinal expense insurance for seniors royal neighbors of america logo black and white

Royal Neighbors is one of the largest women-led insurers in the country and has been in business for over 125 years, since 1895. They take care of their clients and payout claims consistently and quickly and with that have an A- financial business rating.

Royal Neighbors of America is a non-profit fraternal organization and have a dual mission to provide financial protection and community service. They also offer discounts to their clients (which they call members) on various services such as legal, dental, vision, and retail.

The issue age for Royal Neighbors is 50-85. “Simplified Issue Whole Life” is what Royal Neighbors calls their Level product and “Graded Death Benefit” is their Graded product. To keep things simple, we will refer to these products as Level and Graded.

Plan Benefits:

  • Can Apply Over the Phone
  • Accepts Seniors Over 80
  • Day One Full Coverage Options Available
  • Competitive Payout Structure for their Graded Plan
  • Easier to Qualify for
  • Only 9 Health Questions
  • Coverage is Locked in
  • Monthly Premiums are Locked in
  • Member Savings Program
  • Builds Cash Value (So you have the option of taking a loan out against the policy in the future.)
  • Accelerated Living Benefit -Included at No Additional Cost (This simply means that if you are diagnosed with a terminal illness or if you are expected to be in a nursing home for the remainder of your life a portion of the policy can be paid out early.)

Both Level and Graded plans are available through Royal Neighbors of America. Both plans are highly competitive.

Level coverage comes with day one coverage.

Graded has the following payout structure:

  • Death within 1st year of coverage: 30% Payout
  • Death within 2nd year of coverage: 70% Payout
  • Death after 2nd year: 100% Payout

Potential drawbacks:

  • Automatic Bank Draft is Required (You cannot use your direct express card)
  • If you have any of the health conditions that they consider to be a higher risk you will not qualify for day 1 coverage however you may still qualify for the Graded product with the amazing payout structure for a plan of this type.

Overall, Royal Neighbors of America offers amazing day one coverage for clients who have certain health conditions that other companies consider uninsurable. They also offer the most client-friendly graded coverage payout schedule.

final expense insurance for seniors top-ten icon blue and grey

Top 10 Features

1. No Medical Exams Neededfinal expense insurance for seniors no medical exam green Caduceus

You do not have to worry about the hassle of going to the doctors. Getting a policy can be done 100% over the phone from the comfort of your home! The process is easy, a few simple health questions and you can be on your way with the coverage and peace of mind you are looking for.

2. Small Monthly Payments

The goal is to get the coverage that you need, that you want, and that you can afford. Carriers know that the majority of clients are on fixed incomes, these plans are designed with this in mind. Your agent will be able to work with your budget to get you the coverage that you can afford.

3. Lifelong Coveragefinal expense insurance for seniors life long coverage 2 green arrows circling a person

Whole Life policies never expire! Unlike other policies, it will last you for your whole life, which is helpful since that is precisely when you will be needing it.

4. Options with No Health Questions

Not answering any health questions is an option, however, this will cost you more per month and the coverage amounts are limited. If you want the best plans at the best price with the most coverage, it is in your best interest to answer the health questions required of the top tier plans.

If you choose to not answer health questions you will have a 2-year waiting period.

5. Multiple Carriers to Choose Fromfinal expense insurance for seniors multiple carriers green anchor

Independent agencies can shop around between the different carriers on your behalf and qualify you for the best plan that fits your needs and specific health complications. They are not tied to the products sold by one individual company, this is a benefit to you.

6. Simple Underwriting

Underwriting is essentially the decision making process. This is the process in which the carrier decides if they will accept the application to cover you. The guidelines for this are very relaxed when compared to other product types in this industry.

7. Fast Payment to your Beneficiaryfinal expense insurance for seniors fast payment green dollar bill

Plans often pay out claims within 7 days. This is part of what makes these plans so attractive as death is not something you always expect or can plan.

8. Builds a Cash Value

Whole life policies are constructed to build cash value over time. With this cash value, you have the option of taking out a loan against your policy at an interest rate of usually 4-10%.
If you are unable to pay this money back before your passing, the company will deduct your outstanding loan balance from the total death benefit.

For example, if you have a $10,000 policy and take a loan out for $5,000 but only pay back $4,000 before you pass away, your beneficiary will receive $9,000

$10,000 coverage – $1,000 outstanding loan = $9,000

9. Mobilityfinal expense insurance for seniors mobile coverage suitcase

If you move your policy moves with you! You are not tied to any specific state or area to keep your coverage.

10.Speedy Acceptance

Some companies will let you know immediately if you are accepted, others may take a few days. Either way, this is lightning speed when compared to other types of product acceptance lag times.

How to get Immediate Coverage with No Medical Exam

To get immediate coverage with no waiting period and no medical exam you will have to answer some simple health questions. These are plans you must qualify for, you cannot simply pay to play.

Some carriers have a lengthy section of health questions while others only have a few questions. This is entirely up to the company and not something that agents have any control over.

If you want immediate coverage without answering any health questions this simply isn’t possible. The only way the company will cover you immediately is if you qualify for their plan. This is done by answering some “yes” or “no” questions about your health.

There are still no medical exams required, just health questions that are done over the phone. This ensures the best rate possible.

Take Action: How to Get Quotes & Coverage

Step 1: Get an idea of how much your end of life expense will cost

Step 2: Get a free quote on this page

Step 3: Know your monthly budget

Step 4: Talk to an independent agency to find out what you qualify for

Step 5: Complete the application with your agent

Step 6: Sit back and relax with your newfound peace of mind

final expense insurance for seniors buying for someone else grandma with granddaughte

Looking to purchase for someone else?

This is possible! As long as the person qualifies and is willing, it is easy. Most companies will even allow you to be the owner and make the monthly payments towards the policy.

However, the proposed insured is required to be involved in the application process.

You cannot take out a policy on someone without them knowing about it.

Can I use my Social Security benefits to pay?

Yes! Most carriers do require a checking or savings account to make your automatic monthly payments. There are however some carriers who will accept the preloaded Direct Express card issued by the Social Security Administration.

Does Social Security give a death benefit?

Yes but hardly. The maximum benefit that you can receive is $255, which you only get if you qualify.

Working with an Independent Agency and Why it’s Better

There are several distinct benefits to working with an independent agency. But first, it is important to note that by purchasing directly with the company direct you will not be saving any money. This is because most carriers contract their top products out to agencies like Willamette Life. They are in the business of retaining clients, not sales, and like to stick with what they do best.

By the way, if you are able to purchase directly from a company they often only have an inferior Guaranteed Issue product to offer that has a waiting period before full coverage can be awarded.

Other benefits:

  • Qualification check based on preexisting conditions/current health
  • Price check multiple companies
  • Local
  • Can get you the best product with the best shot at getting immediate coverage

You’ll want to stay away from companies that market and sell direct like AARP and Colonial Penn as they have higher prices and 2-year waiting periods.

How to Select an Independent Agency to Work With

There is no lack of options when it comes to deciding who to buy from.

Here are some things to look for when selecting an agent or agency to work with:

  • Specializes solely in this niche
  • Someone that you like and want to work with
  • Have your best interest top of mind
  • someone that you like and want to work with

At Willamette Life, we strive to be all of these and would love the opportunity to speak with you and help qualify you for a great plan.

Call us at 833-518-0080

Final Thoughts

a. The sooner you take action the better. This will allow you to lock in your coverage at a better monthly rate.

b. It is a great option for seniors looking for limited coverage or who are on a fixed income.

c. There are many options when it comes to Final Expense Insurance for seniors. Do your homework and speak with an independent agent. This will help you gather all the needed data to make an informed decision.

Jake Irving

Jake Irving
I’m the owner and founder of Willamette Life Insurance. Willamette Life specializes in Final Expense Insurance. We compare prices with different insurance carriers while finding the perfect match for your health and budget. This company was started to help educate the public on why Final Expense Insurance could be a great option for them and their family. We strive to be friendly, informative, and always have the client’s best interest as our top priority. Everything in this article is my own professional opinion and experiences I have had during my time in helping clients.

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