Top 10 Things to Know about Final Expense Life Insurance

final expense life insurance, top 10 things to know

Final expense life insurance is a good idea if you want to make sure your family can afford your funeral and burial. With the average funeral costing between $8,000-$10,000, final expense insurance can give you peace of mind knowing your wishes will be followed. Here are the top 10 things you should know about final expense life insurance.

  1. No medical exam required. Unlike whole and term life insurance, most final expense life insurance policies don’t require a medical exam before your coverage can begin.
  2. Policies don’t expire. Final expense policies do not expire and you can keep your coverage your entire life.
  3. Benefits can be used for anything. The death benefit paid directly to the beneficiary can be used for anything the beneficiary deems necessary. That means, if you have any outstanding debts like a mortgage or credit card debt, the policy can be used to pay those debts off and give your family some financial breathing room.
  4. Age limits. Some policies may have age limits, but most will insure anyone between 50 and 85. If you are older than 85, you may not qualify for final expense life insurance.
  5. Rate determination. Final expense life insurance rates are determined based on factors like your age, gender, health, and lifestyle.
  6. Low premiums. Compared to whole and term life insurance, final expense life insurance premiums are fairly low. If you’re in good health and young enough, your monthly premium could be as low as $20.
  7. Coverage. Final expense life insurance policies typically range from $5,000 to $50,000.
  8. Waiting period. No medical exam is required to qualify for final expense insurance. However, if you have a pre-existing condition, you may have a waiting period before your insurance kicks in.
  9. Immediate payment. The death benefit is paid to the beneficiary immediately after death with no investigation or waiting period.
  10. Tax exemption. Depending on where you live, the death benefit may be tax exempt.