Cheap Final Expense insurance
Cheap Final Expense Insurance is a type of whole-life insurance policy designed to cover end-of-life expenses, such as funeral costs, medical bills, and other debts. It typically has a smaller death benefit, making the premiums more affordable compared to other life insurance policies.
Final expense insurance is also known as a funeral or burial insurance and is particularly suitable for individuals aged 50 and older who want to ensure their loved ones won’t have to worry about the financial burden of their funeral and other end-of-life expenses. Some of the most affordable final expense insurance companies include Mutual of Omaha, Foresters, and Transamerica.
The Importance of Final Expense Insurance
Life is full of surprises, and sometimes those surprises come with a hefty price tag. One such expense is the cost of a funeral, which can be a significant financial burden for your loved ones. That’s where final expense insurance comes in handy. It’s a type of life insurance designed to cover end-of-life expenses, such as funeral costs, medical bills, and other debts.
Final expense insurance is ideal for individuals who want to ensure their loved ones won’t have to worry about the financial burden of their funeral and other end-of-life expenses.
One of the main advantages of final expense insurance is its affordability. Compared to other types of life insurance, final expense policies typically have lower premiums and don’t require a medical exam. This makes it an attractive option for those with pre-existing conditions or who are unable to qualify for traditional term or whole-life policies.
Blake Nwosu
Owner & Principal Agent
Types of Cheap Final Expense insurance
When exploring cheap final expense insurance types, it’s important to understand the options available. Here are the primary types of final expense insurance policies:
Simplified Issue Final Expense Insurance
Simplified issue policies require applicants to answer a series of health-related questions but do not mandate a medical exam. This type of policy is ideal for individuals in relatively good health who can qualify based on their answers to the health questionnaire. The premiums are generally lower than guaranteed issue policies, and coverage can often be approved quickly.
Guaranteed Issue Final Expense Insurance
Guaranteed-issue policies do not require medical exams or health questions, making them accessible to individuals with significant health issues. However, these policies typically come with higher premiums and a waiting period (usually two to three years) before the full death benefit is payable. If the insured passes away during the waiting period, the beneficiaries may receive a return of premiums paid plus interest.
Graded Benefit Final Expense Insurance
Graded benefit policies offer partial benefits if the insured dies within the first few years of the policy. For example, beneficiaries might receive 30-40% of the death benefit in the first year, increasing to 70-80% in the second year and the full benefit after that. This type of policy is suitable for individuals with moderate health conditions who may not qualify for simplified issue policies but do not want to pay the higher premiums associated with guaranteed issue policies.
RAPIDecision® Final Expense Insurance
This type of policy, offered through providers like eFinancial, emphasizes quick approval and affordability. Policies can start at around $58 per month, and coverage can often begin on the same day as the application. These policies typically do not require a medical exam and are designed to provide immediate coverage for funeral and other end-of-life expenses.
Whole Life Final Expense Insurance
Final expense insurance is often a type of whole life insurance that provides lifetime coverage as long as premiums are paid. These policies build cash value over time, which can be borrowed against or used to pay premiums. Whole-life final expense policies offer fixed premiums and a guaranteed death benefit, making them a stable and predictable option for covering end-of-life expenses.
Key Features Across Policies
– **No Medical Exam**: Most final expense policies do not require a medical exam, making them accessible to a broader range of individuals.
– **Lower Premiums**: Due to the smaller death benefit amounts (typically $5,000 to $35,000), final expense insurance is generally more affordable than other life insurance types.
– **Quick Approval**: Many final expense policies offer fast approval processes, sometimes within days or even on the same day of application.
– **Flexible Use of Benefits**: The death benefit can be used for various end-of-life expenses, including funeral costs, medical bills, and other debts.
| Type of Insurance | Medical Exam Required | Health Questions | Premiums | Waiting Period | Death Benefit | Ideal For |
|---|---|---|---|---|---|---|
| Simplified Issue | No | Yes | Lower than Guaranteed Issue | No | Immediate full benefit | Individuals in relatively good health |
| Guaranteed Issue | No | No | Higher | 2-3 years | Full benefit after waiting period; return of premiums plus interest if death occurs during waiting period | Individuals with significant health issues |
| Graded Benefit | No | Yes | Moderate | 2-3 years | Partial benefit in initial years, full benefit after waiting period | Individuals with moderate health conditions |
| RAPIDecision® Final Expense | No | Yes | Around $58/month | No | Immediate coverage | Individuals seeking quick approval and immediate coverage |
| Whole Life Final Expense | No | Yes | Fixed | No | Lifetime coverage, builds cash value | Individuals seeking stable, predictable coverage with cash value accumulation |
How much is Cheap Final expense insurance
Average Costs
– **General Range**: $30-$70 per month for most applicants.
– **Younger Applicants in Good Health**: $20-$50 per month.
– **Older Applicants or Those with Significant Health Conditions**: $70-$120 per month.
Specific Examples
– **RAPIDecision® Final Expense Policy**: Starts at $58 per month.
– **Coverage Amounts**: Typically range from $5,000 to $35,000.
– **Premiums for a 65-Year-Old Woman in Jacksonville, Florida**: $50 to $128 per month for coverage ranging from $10,000 to $25,000.
Factors Influencing Cost
– **Age**: Older individuals generally pay higher premiums.
– **Health**: Those with significant health conditions may face higher premiums or may need to opt for guaranteed issue policies, which are more expensive.
– **Coverage Amount**: Higher coverage amounts result in higher premiums.
– **Insurance Provider**: Different companies offer varying rates and benefits.
Cost Breakdown
– **Simplified Issue Policies**: Lower premiums due to health questionnaires but no medical exams.
– **Guaranteed Issue Policies**: Higher premiums due to no health questions and guaranteed acceptance, often with a waiting period before full benefits are payable.
– **Graded Benefit Policies**: Moderate premiums with partial benefits in the initial years, increasing to full benefits after a set period.
| Age | Male (Monthly Premium) | Female (Monthly Premium) |
|---|---|---|
| 50 | $30 - $40 | $25 - $35 |
| 55 | $35 - $45 | $30 - $40 |
| 60 | $40 - $50 | $35 - $45 |
| 65 | $50 - $60 | $45 - $55 |
| 70 | $60 - $80 | $50 - $70 |
| 75 | $80 - $120 | $70 - $100 |
Notes:
- Simplified Issue Policies: Generally lower premiums due to health questionnaires but no medical exams.
- Guaranteed Issue Policies: Higher premiums due to no health questions and guaranteed acceptance, often with a waiting period before full benefits are payable.
- Graded Benefit Policies: Moderate premiums with partial benefits in the initial years, increasing to full benefits after a set period.
Chep Final expense insurance Companies
Mutual of Omaha
**Premiums and Policy Terms:**
– Mutual of Omaha offers level premiums that do not increase over time, ensuring that the policy remains affordable throughout the policyholder’s life.
– The coverage is guaranteed to stay in force as long as premiums are paid on time.
**Death Benefits:**
– Death benefits range from $2,000 to $40,000 for the Living Promise Level Benefit Plan and $2,000 to $20,000 for the Graded Benefit Plan.
– The Graded Benefit Plan has a two-year waiting period for natural causes, during which only a portion of the death benefit is paid. Full benefits are paid for accidental deaths from day one.
**Policy Features:**
– No medical exam is required, but there are health questions that may affect eligibility.
– The policy includes an Accelerated Death Benefit rider at no additional cost, allowing access to a portion of the death benefit if diagnosed with a terminal illness.
Transamerica
Transamerica
**Premiums and Policy Terms:**
– Transamerica offers level premium whole life insurance policies, meaning premiums remain constant throughout the life of the policy.
– Policies are available for individuals aged 0 to 85.
**Death Benefits:**
– Death benefits range from $1,000 to $50,000.
– Simplified underwriting with no medical exams required, making it easier for individuals with health issues to qualify.
**Policy Features:**
– The policy includes optional riders such as the Accelerated Death Benefit Rider, Accidental Death Benefit Rider, and Children/Grandchildren Benefit Rider.
– Fast and simplified underwriting process with potential for same-day approval.
Fidelity Life:
Fidelity Life
**Premiums and Policy Terms:**
– Fidelity Life offers affordable premiums with their RAPIDecision® Final Expense Insurance, designed to fit various budgets.
– The policy is available for individuals aged 50 to 85.
**Death Benefits:**
– Death benefits range from $5,000 to $35,000.
– No medical exam is required, but health questions may affect eligibility.
**Policy Features:**
– The policy provides immediate coverage for accidental deaths, while natural death benefits may have a graded period.
– RAPIDecision® allows for quick issuance of policies, often within 24 hours.
Liberty Bankers
Liberty Bankers
**Premiums and Policy Terms:**
– Liberty Bankers offers modified whole life insurance with level premiums that do not increase over time.
– The policy is available for individuals aged 40 to 80.
**Death Benefits:**
– Death benefits range from $1,000 to $20,000.
– The policy has a graded death benefit structure: during the first three years, non-accidental death benefits equal a refund of all premiums paid plus 10% compounded interest. Full benefits are paid for accidental deaths from day one.
**Policy Features:**
– Optional riders, such as accidental death benefit riders, are available to enhance coverage.
– The policy includes a simplified application process with no medical exams required.
American Home Life
American Home Life
**Premiums and Policy Terms:**
– Offers permanent whole-life coverage with guaranteed premiums that never increase.
– Simplified whole life insurance for final expenses with limited underwriting and a short-form application.
**Death Benefits:**
– Provides a guaranteed death benefit and guaranteed cash values that grow over time and are available for financial emergencies.
The minimum issue amount for final expense insurance is $1,000.
**Policy Features:**
– Permanent policies may pay dividends, which can increase death benefits and cash values.
– Offers participating whole life insurance with guaranteed premiums, death benefits, and cash values.
Foresters Financial
Foresters Financial
**Premiums and Policy Terms:**
– PlanRight Whole Life Insurance offers guaranteed level premiums and lifetime death benefit protection up to age 121.
– Coverage is available for ages 50 to 85, with face amounts between $5,000 and $35,000.
**Death Benefits:**
– Provides a guaranteed death benefit and cash value that can be borrowed against for emergencies.
– Death benefit is generally income tax-free.
**Policy Features:**
– No medical exams are required; underwriting is based on answers to medical and other application questions.
– Includes riders such as accidental death, common carrier accidental death, family health benefit, and accelerated death benefit for terminal illness at no additional premium.
AIG
AIG
**Premiums and Policy Terms:**
– Guaranteed Issue Whole Life Insurance with premiums starting at $21 per month for a $5,000 coverage policy.
– Designed for senior adults ages 50 to 80, with coverage amounts ranging from $5,000 to $25,000.
**Death Benefits:**
– Provides a fixed rate and guaranteed coverage with no medical examination or health questions required.
– Includes a two-year waiting period for natural death, during which the benefit is 110%-120% of the premiums paid; full death benefit is paid after two years.
**Policy Features:**
– Includes living benefits for chronic or terminal illnesses at no extra cost.
– Approval is guaranteed, making it suitable for individuals with pre-existing conditions.
Prosperity Life Group
Prosperity Life Group
**Premiums and Policy Terms:**
– Offers three types of final expense plans: Level Plan, Graded Plan, and Modified Plan.
– Coverage available for ages 50 to 80, with death benefits ranging from $1,500 to $35,000.
**Death Benefits:**
– Level Plan offers immediate coverage with no waiting period and is the most affordable option.
– Graded Plan and Modified Plan have different structures for death benefits based on the health condition of the insured.
**Policy Features:**
– Premium modes include monthly, quarterly, semi-annual, and annual payments.
– Accidental death benefit rider available for applicants under age 74.
| Company | Premiums | Death Benefits | Policy Terms |
|---|---|---|---|
| Mutual of Omaha | Guaranteed premiums, no medical exam required | $2,000 – $25,000 | Whole life coverage, permanent, cash value accumulation, no increase in premiums |
| Transamerica | Affordable premiums, varies based on health and age | $1,000 – $50,000 | Whole life, simplified issue, no medical exam, immediate coverage |
| Fidelity Life | Competitive premiums, varies by policy type | $5,000 – $35,000 | Whole life, graded benefit plans available, no medical exam |
| Liberty Bankers | Fixed premiums, varies based on age and health | $1,000 – $30,000 | Whole life, simplified issue, immediate coverage |
| American Home Life | Guaranteed premiums, whole life coverage | Minimum $1,000 | Permanent whole life, guaranteed death benefit and cash values |
| Foresters Financial | Guaranteed level premiums | $5,000 – $35,000 | Coverage to age 121, whole life, no medical exam, cash value |
| AIG | Starts at $21/month for $5,000 coverage | $5,000 – $25,000 | Guaranteed issue whole life, no medical exam, 2-year waiting period |
| Prosperity Life Group | Affordable premiums, multiple plan options | $1,500 – $35,000 | Whole life, immediate coverage (Level Plan), graded benefits for other plans |
FAQs Related to Cheap Final Expense Insurance
What is Final Expense Insurance?
Final expense insurance, also known as burial or funeral insurance, is a type of whole life insurance designed to cover end-of-life expenses such as funeral services, burial or cremation, and outstanding medical bills.
How Much Does Final Expense Insurance Cost?
The cost of final expense insurance varies widely based on factors such as age, health, gender, and the amount of coverage. On average, a $10,000 policy can cost between $50 and $100 per month. Simplified issue policies generally have lower premiums compared to guaranteed issue policies.
What Does Final Expense Insurance Cover?
Final expense insurance covers costs related to a person's passing, including funeral services, burial or cremation, medical bills, and other debts. The death benefit can be used by beneficiaries for any purpose, including non-funeral expenses.
Is a Medical Exam Required for Final Expense Insurance?
No, final expense insurance typically does not require a medical exam. There are two main types of policies:
- Simplified Issue: Requires answering health-related questions but no medical exam.
- Guaranteed Issue: No health questions and guaranteed acceptance, often with higher premiums and a waiting period before full benefits are payable.
How Much Final Expense Coverage Do I Need?
The amount of coverage needed depends on individual circumstances. The National Funeral Directors Association estimates the average funeral cost to be around $9,000. Many choose coverage between $10,000 and $15,000 to cover basic expenses and additional debts.
When Should I Purchase Final Expense Insurance?
It is advisable to purchase final expense insurance as soon as possible since premiums increase with age. Typically, these policies are available to individuals between the ages of 50 and 85.
Will My Final Expense Premiums Change Over Time?
No, final expense insurance premiums are typically fixed and will not change over time, regardless of age or changes in health.
How Long Will My Final Expense Policy Last?
Final expense policies are designed to last until the insured's death, provided premiums are paid. They offer lifetime coverage and a guaranteed death benefit.
What is the Difference Between Final Expense Insurance and Whole Life Insurance?
Final expense insurance is a specific type of whole life insurance focused on covering end-of-life expenses. It offers smaller death benefits compared to traditional whole life insurance but is easier to obtain and often does not require a medical exam.
Is Final Expense Insurance Worth It?
Final expense insurance can be a valuable option for those seeking to ensure their loved ones are not burdened with funeral costs and other end-of-life expenses. It provides peace of mind and financial security during a difficult time.