Affordable final expense insurance

What is final expense life insurance?

Final expense is a smaller permanent life insurance policy typically intended to help older adults cover funeral costs and other end-of-life expenses.

Also sometimes called “funeral insurance” or “burial insurance,” final expense life insurance typically provides a guaranteed payout to help loved ones pay for a funeral service, burial or cremation, doctor or hospital bills, or other immediate expenses after a death. Like other types of permanent insurance, final expense insurance will never expire as long as you keep up with your premiums.

Since coverage amounts are lower than other types of life insurance, like term or permanent insurance, the premiums for a final expense policy tend to be affordable. Coverage amounts can range from a few thousand dollars up to $40,000, in some cases.

Final expense insurance is easy to qualify for, with no medical exam required. As long as you fall between the age limits of 50 to 85 years old, you can often get approved for a policy within days.

How does final expense life insurance work?

Final expense life insurance is different from most kinds of life insurance, which people usually buy to replace their income and cover their family’s long-term financial needs in case they die.

There are two types of final expense insurance:

Simplified issue final expense insurance. Simplified issue is best for people in relatively good health who are looking for a way to cover end-of-life costs. The application includes a few health questions, but there’s no medical exam required. Coverage amounts for simplified issue typically go up to $40,000.

Guaranteed issue final expense insurance. Guaranteed issue is for best for people whose age or health prevents them from buying other types of life insurance coverage. There are no health requirements at all with guaranteed issue, so anyone who meets the age requirements can typically qualify. Coverage amounts generally go up to $25,000

Apply

Start by thinking about your funeral plans and any other bills you might incur, like medical bills or leftover debt, and add them up. This will help you figure out your ideal coverage amount. Before you commit, explore the variety of final expense plans available.
Fidelity Life can help you compare plans and find the best fit, or help you start your application online or over the phone for one of our two final expense options.
Final expense applications are a quick and easy process. There’s no medical exam required, and in some cases, you may not even have to answer health questions. This helps cut down on approval times, so you can get covered right away.

Buy

Once you’re approved for final expense life insurance, you’ll make regular premium payments on your policy. Fidelity Life’s final expense plans will last the rest of your life, as long as your payments are up to date, which will aid in building cash value for your payout. We also offer guaranteed final expense level premiums so payments don’t go up over time, which can help with budgeting if you’re on a fixed income.
Make sure to give spouse or other family details on the policy and insurance company, so they can access it when the time comes.

Protect

After your death, your family will receive a lump sum cash payout equal to the coverage amount you applied for. They can use this money for whatever they need: to pay funeral costs, cover bills and leftover debts, or save. Having a final expense plan in place can provide a financial safety net for your loved ones during a difficult time.

Some people assign a funeral home as the beneficiary of their policy, so the payout goes directly to the business to cover those costs. If you prefer this option, check to make sure your chosen funeral home will allow you to set this up.

Benefits of final expense insurance

Ability to build cash value:Like other kinds of permanent insurance, final expense insurance builds cash value over time. You can borrow from that cash value during your lifetime or use it as collateral for a loan, giving you another way to pay for expenses as needed.

Some people assign a funeral home as the beneficiary of their policy, so the payout goes directly to the business to cover those costs. If you prefer this option, check to make sure your chosen funeral home will allow you to set this up.

Level premiums and guaranteed coverage:Final expense insurance offers guaranteed protection and level premiums, backed by Fidelity Life’s track record of financial strength

Flexible use of death benefit:Your family has the flexibility to use the death benefit to pay for burial or funeral costs, medical bills, credit card debt, or anything they choose.

Fast coverage:Our fast, hassle-free purchase experience may allow coverage starting right away thanks to our RAPIDecision® products.

Is final expense insurance right for you?

Plan on having your estate or Social Security pay for your funeral? Those sources have limitations. Relying on your will to cover final costs can be tough on your family, since it’s typically read after the funeral and can take months to be settled. Social Security life insurance makes a one-time death payment of $255 if you qualify – far less than the average cost of a funeral. Final expense can provide your family with access to thousands of dollars quickly after your death with no waiting periods, giving them a way to pay for expenses in the weeks and months right after your death.

For people between 50 and 85, final expense insurance is an affordable way to give your family peace of mind during a difficult time. If you have an existing life insurance policy, a final expense plan can also offer guaranteed death benefits to cover unexpected expenses.

Alternatives to final expense insurance

There are advantages to buying final expense life insurance, including fast approvals and affordable premiums. However, final expense insurance isn’t for everyone. Depending on your health and financial goals, there are alternatives to pay for your funeral and other end-of-life costs, including:

Term life insurance.Term life is the simplest, most affordable type of life insurance. It offers protection for anywhere from 10 to 30 years, and you can choose how long you want to stay covered. Once that period is up, you’ll need to purchase another policy (usually at a much higher rate) to maintain coverage. Term life also comes in larger coverage amounts, so it can help replace income or pay for other big expenses beyond funeral costs.

Whole life insuranceWhole life is a type of permanent life insurance, which offers lifelong protection as long as you pay your premiums. Whole life also comes with a savings feature called cash value that grows over time. You can borrow from the cash value in your policy while you’re still living to help cover day-to-day needs or pay for big expenses. Whole life policies offer a much higher death benefit than final expense insurance.