Final Expense

Peace of Mind You Can Rely On

Final expense insurance is used to pay for burial expenses and funeral services when the insured dies. This policy can ease the financial burden placed on a family when a loved one passes away allowing the family to mourn without the added stress of funding a funeral.

Having a Final Expense Insurance policy means you are covered for life. It also provides your family the means and ability to pay remaining expenses or debts – you can even assign some of the benefit to charities of your choice.
Final Expense Life policies let you match the policy coverage to your needs – you choose the amount of coverage you want.

NO MEDICAL EXAMS are needed with Final Expense Life Insurance. The policies are created as simplified issue which means you only fill out a short application and no nurse is required.

Costs Associated with Burial Insurance

  • Cemetery Plot
  • Casket
  • Headstone and Engraving
  • Minister
  • Funeral Service
  • Wake/Visitation
  • Transportation
  • Legal Fees, probate costs
  • Physician and Hospital bills
  • Debts outstanding
  • Mortgage pay-off, car loans, credit card balances

Simplified Issue Life Insurance

Many insurance policies for the seniors are simplified issue.
There is no medical exam necessary. In other circumstances, insurers will require a physical exam to verify an applicant’s health and qualifications for coverage. A simplified issue policy asks some questions about an applicant’s health and the answers to those questions will determine whether or not you qualify for coverage, and how much it will cost.

What kind of questions will I answer?
The health questionnaire will differ from one company to another, but will be related to health history and lifestyle for the purposes of risk assessment.

What if I answer yes to one or more questions?
Your answers will determine your risk level and whether you will qualify for a preferred a standard rate. If your answer to one or more of the questions is yes, then that doesn’t mean you can’t qualify for a policy; just that you will not qualify for the best rate. Insurers. If you don’t qualify for the lowest rate, you may qualify for coverage at a slightly higher cost or a plan that may have modifications to coverage.

How does that affect my coverage?
If you answer yes to one or more of the questions, you may not qualify for immediate benefits. Instead, your life insurance coverage could be graded. This means that the full death benefit is not payable the second or third year of the policy. For example, if you are 75 with some adverse health history and you purchase a $10,000 policy with graded benefits. If you die in the first year, your beneficiaries may only get $4,000. If you pass away in year two, your beneficiaries may only $6,000. After the second year the death benefit is fully payable and your beneficiaries would get the full $10,000 at your passing.

Guaranteed Issue Insurance

Many worry about purchasing life insurance. They fear that previous health issues could negatively affect their application for life insurance. Indeed, many seniors have been denied Insurance because of their medical history.

Guaranteed Issue Policies Can Be An Option
If you have had medical issues in the past, you have several options. One could be a Guaranteed Issue Life Insurance designed specifically for elderly participants. While a guaranteed issue policy involves modestly higher premiums, it is far better having no coverage. Even with the premium increase, the result nets better than most other financial products and ensures that your family has some financial assistance should you pass away.

No Medical Exam
Guaranteed elderly life insurance is actually quite simple to obtain. There is no medical examination. You will simply fill out a few forms. Many leading national companies underwrite Guaranteed Issue life insurance policies, so you have options.

Guaranteed Issue Insurance Advantages:
A locked-in premium that won’t change for the life of the policy
Permanent coverage for the rest of your life
Buildup in cash value over your lifetime
Full death benefit after the first two years

Graded Death Benefit
Guaranteed Issue life insurance typically gives you graded death benefits. Should you pass away in the first or second year of your policy, your beneficiaries will receive the amount paid in premiums, less fees and expenses. Depending on the specific plan you choose, your beneficiaries will typically receive the full insurance amount after two years.

What if I have health problems?

Health Requirements for Final Expense Insurance
Most seniors realize that burial, probate and other end-of-life expenses can add up to thousands of dollars, and therefore opt for Burial Insurance as the right and responsible thing to do. However, seniors are also rightly concerned about being denied Burial Insurance because of age and health problems.

The good news is that you can qualify for standard Burial Insurance rates if you have minor health problems that can be controlled with two medications or less. For example, if you have high blood pressure or high cholesterol, you likely will get standard coverage, eligible for full death benefit once you pay your first premium.

If you have a history of heart attack, stroke, or cancer that happened within the last three years, you likely will qualify for Burial Insurance but with graded benefits where you get partial coverage for the first two years, and payment of the full coverage amount after two years.

In more serious cases such as HIV or renal failure, you will more likely qualify for a Guaranteed Issue policy that provides full life coverage with a fixed premium.

Do I need a medical exam?

Medical Screening
Insurers can learn a lot from your application alone. Burial Insurance applications ask questions about smoking, height and weight, past medical illnesses, family history, to understand health and lifestyle.

They often also check your medical history through prescription databases and the Medical Information Bureau. Sometimes, they may even contact your doctor.

Coverage Terms
Healthy seniors typically get full coverage as soon as they pay the premium. Seniors that take minor medicine for controllable health problems such as high blood pressure or high cholesterol can also get covered.

Those with complex health problems, such as kidney failure, will likely not qualify for Burial Insurance but can still get something called Guaranteed Issue Life insurance. While a guaranteed issue policy carries modestly higher premiums, it still provides full life coverage with a fixed premium.

Can I cover my parents?

BUYING BURIAL INSURANCE FOR PARENTS
Many seniors have the means and the desire to buy Insurance, and leave no financial liabilities for their dependents and loved ones. In such instances, you, as a dependent, *may be able to purchase elderly insurance that covers your financial expenses upon the passing of your parents.

*NOTE: Legal requirements to purchase insurance for another person vary from state to

You have several elderly insurance options to choose from, based primarily on the health of the insured person (your parent). You could choose from Term Life Insurance, Burial Insurance, or Graded Benefits Burial Insurance.

Term Life Insurance (for healthy seniors)

  • Medical examination may be required, to prove that the insured is in good health
  • Insurance for a fixed period or Term (5, 10, 15, 20 years, etc.)
  • Insured covered up to the age of 85 (depends on insurance company guidelines)
  • Many seniors outlive the fixed term so look for a policy that can be converted to whole life insurance
  • Consider purchasing Burial Insurance also, should the senior outlive the Term

Burial Insurance (for healthy seniors)

  • No medical examination required
  • Insured person is covered for life
  • Premiums do not change
  • Cash value increases over time
  • If the insured is healthy, you have full benefit the day after you pay your first premium
  • Coverage cannot be canceled as long as you pay your premiums on time
  • Proceeds can be used for burial costs and other expenses

Graded Benefits Burial Insurance (for seniors with health problems)

  • No medical examination
  • Insured person is covered for life
  • Premiums do not change
  • Policy increases in cash value over time
  • Partial coverage for the first two years, and the full face amount only in the second or third year of the policy
  • Insurance company cannot cancel coverage as long as you pay premiums on time
  • Proceeds can be used for burial costs and other expenses