Final Expense

What is Final Expense Insurance?

Final expense life insurance, also known as burial insurance, is a life insurance policy designed to cover end–of–life costs. These policies are typically small. They range from $2,000 to $40,000.People take these polices out to cover the costs of funeral and burial services, medical bills, and other debts that may be left behind. 

Who needs Final Expense coverage?

Final expense life insurance is often a great option for older individuals who don‘t have a large amount of money saved up for their passing. This type of coverage is usually available to those over the age of 50. The premiums are generally lower than those of a traditional life insurance policy. This is because final expense life insurance policies are designed to cover only the costs associated with one’s passing. In addition to being affordable, final expense policies are typically easy to obtain. Most policies require only a short application and no medical exam. This makes it an attractive option for those who have health issues. It also makes the process of obtaining coverage much simpler than it would be with a traditional whole life policy.

Another benefit of final expense is that the coverage is often guaranteed. This means that the policy holder will receive the full amount of their coverage regardless of their health status at the time of their passing. 

How much coverage do I need?

Numerous factors impact how much coverage you need. Looking at your expenses can help determine how much you need. Here are a few things we recommend considering while making this decision:

• Funeral, burial, and cremation costs
• Legal expenses
• Remaining medical expenses
• Remaining household expenses

How much will my Final Expense premium be?

This amount will vary depending on a few factors. Generally, things like age, sex, and health. A good estimate is around $20.00 – $60.00 per month. However, getting an individualized quote is always best practice! At LMS, we can shop over 40 insurers to find you the best rate. As time goes on, your premium will remain the same.

Usually, final expense life insurance policies do not increase in price. They remain the same throughout the life of the policy, although the insurer may adjust the premiums to reflect the age and health of the insured. 

Are there different types of Final Expense Insurance?

• Level death benefit: is a life insurance policy that pays out a fixed amount of money to the beneficiary when the insured passes away. 
• Graded death benefit: is a life insurance policy that pays out a lower amount of money to the beneficiary when the insured passes away during the first few years of the policy. The death benefit gradually increases over time to the predetermined amount stated in the policy.

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