Best Final Expense Plans: Which One Is Right For You?

Finding the right insurance policy to cover end-of-life expenses, such as funeral costs or even outstanding debt, can seem intimidating. It helps knowing where to start, which is usually identifying your needs. That said, this post will explore the best final expense plans and how to find the ideal coverage for you. 

What Is Final Expense Insurance? 

After death, your loved ones could face medical bills, outstanding debts, funeral expenses, and burial costs. Unfortunately, over 70% of Americans leave an average of $60,000 worth of debt after passing. Without dedicated resources, covering these financial demands could cause stress and anxiety for your remaining loved ones. The best final expense plans take your needs into account, providing vital funds for loved ones to use for such financial responsibilities.

Additionally, final expense insurance plans are often used for their designed purpose: covering funeral and burial costs. In the United States, dying is expensive. A funeral (including cremation) averages $6,000 to $8,000. If you choose burial, the average costs increase to more than $10,000. 

Final expense insurance offers a death benefit paid directly to your named beneficiary. The beneficiary can use the payout to cover end-of-life expenses and to pay off any remaining debts. 

Unlike traditional life insurance, this coverage is often available without a medical exam. 

Who Needs Final Expense Insurance?

Final expense insurance isn’t for everyone — but for some, it’s a perfect fit. Keep in mind, it’s not uncommon for older individuals to be turned down for traditional life insurance. From health concerns to age, many reasons disqualify people from getting coverage. Final expense insurance empowers these individuals to provide financial support for their loved ones.

Final expense insurance offers a helpful solution to those who are unable to secure traditional life insurance. Many people in nursing homes or hospice care centers opt for this coverage over traditional life insurance because they’re more likely to be thinking about their final arrangements and they don’t want to burden their loved ones with extra expenses. Because there’s minimal underwriting involved, it’s an ideal solution for those who are short on time.

Final expense plans are typically used by those who are between 45 and 85 years old, with simple legacy needs. These plans are especially great for those with chronic or terminal illnesses who do not want to undergo a medical underwriting process.

What Types of Coverage Are Available? 

Consumers can choose from two primary types of final expense plans: simplified whole life insurance and guaranteed issue life insurance. Let’s examine the differences between these two policies.

• Guaranteed Issue Life Insurance: Many providers offer coverage no matter your physical health; however, insurers will deny coverage on rare occasions because of a terminal illness. Guaranteed issue life insurance works well for seniors who don’t qualify for traditional life insurance. Almost no one is denied coverage. 

Many people consider guaranteed issue life insurance to be one of the best final expense plans available, and applicants typically don’t need to submit a health questionnaire. As a result, it costs a bit more because it’s a near-certain application process. Coverage amounts typically range from $5,000 to $25,000.

• Simplified Whole Life Insurance: Simplified whole life insurance is specifically designed for those with only moderate health risks. Potential policyholders must submit a detailed medical questionnaire to qualify. Although this coverage typically costs more than term life insurance, it’s still an affordable option. Policies usually cover up to $50,000.

What Should You Look for in a Policy?

Choosing the right policy comes down to four distinct elements: price, options, terms, and premiums. Here’s what you should look for in comparing the best final expense plans.

• Price: Insurance carriers can vary significantly in the premiums they offer as well as how much those premiums cover. Some carriers provide more coverage than others for the same premium. It’s vital to compare prices as you shop for the best option for you.  
• Policy Options: Final expense insurance policies are not all the same. Some have better riders or additional coverage, while others claim to offer similar coverage for the same price. It’s not uncommon for individuals to benefit from these types of “extras.” Be sure to know what you need and carefully consider your options. 
• Contract Terms: It’s effortless to sign the dotted line upon purchasing a new policy — but read the contract thoroughly before committing to it. As with most insurance policies, knowing the details of your contract terms will minimize the chance of troubling surprises. 
• Fixed Premiums: Some insurance policies have premiums that fluctuate. The best final expense plans have premiums that stay the same throughout the life of the policy. Not only do fixed premiums make for easier budgeting, but they also help avoid policy lapses. 

How Much Coverage Do You Need?

Before deciding how much coverage to purchase, it’s helpful to know what you genuinely want. For example, do you wish for burial or cremation? What style of funeral do you desire? It’s never fun or pleasant to think about these details — but it’s one way to express care for your loved ones. 

You may want to write down all your final wishes – specifying the desired venue, flowers, music, and other service preferences. You may also want to choose your burial plot or niche and select your casket or urn. This will enable you to accurately estimate how much money your loved ones will need to carry out your final wishes. 

Additionally, take an honest look at your financial situation. Do you have any outstanding debts, loans, or medical bills? Will these financial responsibilities fall on your family after your passing away? What’s the best way to support your loved ones even when you’re no longer there?

Answering these questions will help you decide how much coverage you need and what policy will suit you best. 

Legends United Insurance Is Here to Help

Need advice about final expense funeral insurance? Please contact us today, call (833) 414-5520 to speak to a licensed agent, or get a free quote. We work with many of the nation’s best final expense insurance companies, and we will do the shopping for you.