Final Expense

Burial Insurance is also known by a few other names, like “funeral insurance,” for instance or, “final expenses insurance.” Insurance companies and agents take extreme care in some cases to use such applicable euphemisms when referring to death and making final policy plans to prepare for the aftermath of death. Too many people are too afraid or too anxious to discuss the future eventuality of their own death.

Especially in reference to how it will affect loved ones. But you shouldn’t wait too long to get life insurance.

Enter your basic information in the comparison quote calculator on this page to find the right burial insurance quote for you.

Purchasing adequate life insurance is a necessary part of life. Everyone has a date of birth and everyone has a future date of death. Death is a part of life and a certainty of life which should not be excessively brooded upon, but not totally ignored either. Death is a final certainty for every everyone. And ignoring what could happen to your family and loved ones in the aftermath of your passing can prove costly in the long run.

Consider:

  • Most people are blissfully unaware that even basic funeral plans and arrangements almost always cost several thousands of dollars to finance.
  • When it comes to preparing for a funeral, expenses can include but are not limited to: funeral preparations, funeral arrangements, floral arrangements, food and refreshments, funeral parlor rental, funeral procession, burial preparations, casket with or without options, burial plot and headstone, the burial ceremony and other related expenses.
  • The average price for a funeral can be in the $5,000-$7000 range as a starting price.
  • The emotional grief and life stressors that your loved ones will have to deal with in the aftermath of your passing will be greatly magnified if they are then also left with the task of financing your funeral arrangements.
  • Your family could burn through savings or take on debt if left no other option to pay for funeral expenses.
  • The threat of bankruptcy and massive debt can stalk your family for years after your death.

It takes some people a little longer than others to come around to the truth of the need to acquire adequate life insurance, let alone basic funeral expense insurance. Some people think that they are too old and therefore are too late to be insured for their mortality. Others may think that there are too many small print technicalities. Or that rates will progressively get more expensive. Or that there is a set grace period before a policy is paid out because of the nature of the insurance.

Every situation and circumstance is different and unique, but most funeral expense life insurance plans feature the same basic options.

Here are some of the basic and standard policy options that come with most funeral expense life insurance plans.

Policy Basics

Funeral expense life insurance is a basic form of life insurance that most people can qualify for between the ages of 50 and 85 without having to take a medical examination. Of course there are exceptions, depending on the circumstance, but overall such coverage is available to most people who qualify.

This type of insurance is very common and affordable because they are usually bought by people who just want to buy a basic form of life insurance without too much hassle, paying too much or focusing too much on the aftermath of their own mortality. Some people have pre-existing medical conditions or are too old or infirmed to qualify for most other forms of life insurance.

The main goal of the insurance is to provide a buffer of financial protection to family and loved ones, people who will most certainly bear the brunt of financing, preparing and arranging for your, “final expenses,” or your funeral arrangements.

The Basics of Funeral Expense Life Insurance

  • Funeral expense life insurance is one of the most basic and affordable forms of life insurance. There is no really no reason not to apply for it.
  • Most basic plans qualify applicants up to a maximum age limit of 82. Some policy plans may allow for an age limit of 85, the age ceiling range for such policies usually average into the 80-82 age range. Applicants over the age of 82 can also apply but may be subject to requests for extra information or medical exam.
  • If you are under the age of 82, are not employed in a dangerous vocation or have a severe medical ailment or condition, then you qualify for this coverage. Your current age and health status are the major determining factors for such policy qualification.
  • Most insurance companies will not insure people aged 80 and over without self-benefitting conditions, caveats or extra cost passed on to the policy owner. Statistically speaking, most people die in their late 70’s. Most women on average pass away in their early 80’s. Most funeral expense life insurance plans are designed to qualify people who may be disqualified for most other life insurance policy considerations and yet still limit as much risk as possible for insurance companies.
  • Premiums can be designed to meet your budget, lifestyle and prospective final expense needs. But on average, the younger you are, the cheaper the premium will be.
  • Most final expense life insurance policies offer coverage plans ranging from $2,500 and up to $50,000.
  • Most final expense life insurance plans are a kind of whole life insurance, meaning that premiums are paid throughout the lifetime of the policy holder. There are also term life variations of the final expense life insurance policy plan, which may include more cost or different policy conditions.
  • Most funeral expense life insurance policies may feature a 2-year contestability clause condition. What this means is that an insurance company or agent has the right to contest payment of death benefits and void payout of such if the owner of the policy dies within the first 2 years of policy coverage commencement. Such a clause is a basic feature on most policies because of the risk involved to insurance companies who insure applicants of advanced age and/or infirmed health.
  • Your funeral expense life insurance policy can accrue cash value over time and can be leveraged against a loan by the policyholder.
  • As the nature of funeral expense life insurance necessitates, there are premium rate variations for applicants based on age. On average, the younger the applicant then the cheaper the premium

If you are looking for funeral expense coverage that surpasses $50,000 or more in policy coverage, then know that most plans can be converted into guaranteed universal, term life, whole life or many other forms of traditional life insurance products and packages. It is more expensive however and will definitely involve a medical examination.

Guaranteed Issue or Graded Benefit Policy Options

The 2-year contestability clause condition is designed to protect the financial line of insurance companies from the aggregate and steadily accruing risk of death benefit payout against the number of policies taken on by applicants of advanced age and infirmed health. Such conditions preclude qualification for most traditional life insurance barring caveat and cost and are the reasons for the enforcement of the 2-year contestability clause condition.

But all hope is not lost. There are affordable insurance policy options of convenience even for applicants of advanced age or those suffering from a severe health condition.

Guaranteed Issue or Graded Benefit Funeral Expense Life Insurance

  • Almost every applicant who applies is accepted, with no consideration of age or medical status.
  • Like most funeral expense life insurance policies, the 2-year contestability clause condition is still in effect. If the policyholder passes away within the first 2 years of policy coverage, then the policy is voided altogether.
  • However, unlike most funeral expense life insurance packages, with a guaranteed issue or graded benefit policy a pre-determined percentage of the original policy coverage amount and equivalent cost amount of paid premiums with interest are paid out to listed beneficiaries in the event of policyholder death occurring within the first 2 years of coverage.
  • This type of coverage may be a little more expensive but is worth it, especially for hard to qualify applicants who want some kind of coverage.
    Premium rates are locked-in and do not feature premium rate increases over time.

Self-Insurance Option

Insurance companies and agents alike will advise of the benefits of self-insurance practices to applicants of funeral expense life insurance. Self-insurance is the practice of dedicated financial saving for the express purpose of the funds being posthumously used to pay policyholder funeral expenses.

It may sound simple, but it may be easier to save your financing in a good savings plan as early as possible to prepare for your final expenses.

Bottom Line Basics

Funeral expense life insurance is the most basic form of life insurance that one can apply for. And given the stark realities of bankruptcy, debt and the compounded emotional grief that can haunt the family and loved ones of people who don’t prepare for the expenses of death, there is no excuse not to apply for such coverage.

Contact ous today to begin the application process for your final expenses. Do it soon, for yourself and for the sake of your family.