Is Final Expense Worth Buying?

For people without a traditional life insurance policy, final expense is an affordable way to make sure your family has the funds to give you a proper burial without dipping into their savings. Your dependents don’t need to worry about paying for your funeral service when you set money aside for them with a final expense benefit. They can use the money however they wish, which is often useful for medical bills as well. 

What Is Final Expense?

Final expense is a type of whole life insurance with a small death benefit that your dependents can use to help pay for the costs of funeral arrangements and other expenses like medical bills. Unlike most other life insurance, there is no medical exam and you only need to answer a few questions about your smoking status and other serious health issues.

What Do You Get With Final Expense?

Death benefits from major final expense carriers are between $2,000 and $50,000. Most benefits are $10,000–$20,000.

How Much Does Final Expense Cost?

Final expense insurance is paid for by level monthly premiums. That means your cost won’t increase over time, even if you develop a health condition after you have a policy. As long as you continue to pay your premiums, your policy will stay in force regardless of changes in your health status.

A few things can influence your monthly premiums. The younger you are when you apply and the better health you are in, the lower your monthly premiums will be. Most people apply for final expense insurance between the ages of 50 and 85. 

How Can Your Beneficiaries Use the Money?

Your beneficiaries have the freedom to use the money however they choose to. The benefit is designed to be enough to cover funeral and burial expenses, but your beneficiaries may also decide to use it to pay for medical bills, outstanding debts, taxes on an inheritance, or any other costs that arise when you pass away.

With many companies, you may receive assistance with documenting your wishes for your final arrangements. You can keep this with your will or ask it to be passed along with the benefit when the time comes.

How Much Are Funeral Expenses?

The average cost for funeral and burial or cremation services falls around $7,000–$9,000. You will want a benefit of at least $10,000 to comfortably cover the expenses for final arrangements. Larger death benefits will leave room to help pay for medical bills and other costs.

Why Buy Final Expense?

People purchase final expense insurance if they want to help their dependents with the cost of their burial or if they want to leave them a sum of money. If you don’t have a whole life insurance policy already, final expense insurance might be a great option for you. Those who have health conditions that would make other life insurance too expensive are excellent candidates for final expense.

Speak with one of our associates to learn more about final expense and find out if it’s a good option for you.