Final Expense and Burial

An affordable insurance policy helps ease the financial burden placed on a family when a loved one dies. Choose an amount you want to cover your funeral, burial, or cremation. You can even leave extra for your beneficiaries as a gift.

WHAT IS FINAL EXPENSE INSURANCE?

A final expense life insurance policy is used to pay for burial expenses and funeral services when a loved one dies. This helps ease the financial burden placed on a family when a loved one dies. Choose an amount you want to cover your funeral, burial, or cremation. You can even leave extra for your beneficiaries as a gift.

Some final expense policies also build cash value, except for pre-need or funeral policies. This cash value can be used for any purpose. You can take out a loan against the cash value, withdraw cash, or increase the death benefit.

5 TYPES OF FINAL EXPENSE POLICIES

While final expense insurance is a simple and straightforward life insurance policy, there are 5 different types. Which one you qualify for will mainly depend on your overall health, read more about qualifying for final expense life insurance.

The following are the 5 types of final expense policies.

TYPEHEALTHPRICE
LevelGoodBest
GradedAverageGood
ModifiedBelow AverageOK
Guaranteed issueBelow average/badOK
FuneralBelow average/badOK

With the cost of funeral expenses soaring, final expense insurance can help cover costs incurred during the end of life, such as medical bills and other expenses.

CHOOSING THE RIGHT TYPE OF FINAL EXPENSE

Final Expense for Healthy Seniors

The best type of final expense is called level, for two main reasons:It’s the most affordable final expense policy

​✔️ It’s the most affordable final expense policy

✔️ Your beneficiaries will receive the full benefit, starting at day 1 of the policy

In order to qualify for a level final expense policy, though, you must be in good overall health. This doesn’t mean you can’t take any medications, or can’t have a history of (mild) health conditions, it simply means that for your age, you are in good health.

Final Expense for Seniors in Poor Health

If you take multiple medications or have a health condition such as diabetes or sleep apnea, you will not qualify for level final expense life insurance. In this case, a guaranteed issue final expense policy is best, for one simple reason, you can not be denied.

However, since guaranteed is so convenient, it is much more expensive. Most guaranteed issue policies also have a graded death benefit period of 2 years.

Graded benefit period explained

During the graded period, your beneficiaries will not receive the full death benefit if you pass away due to health. Instead, they will receive the premiums you paid, plus 10% interest. If the cause of death is due to an accident, your beneficiaries will receive the full death benefit, even during the graded period.

So, let’s say your monthly premium is $100, and you pass away after exactly 12 months since the policy went in force. Instead of receiving the death benefit (the coverage amount of your policy), your beneficiaries will receive $1,200 + $120, for a total of $1,320.

WHAT FINAL EXPENSE PLAN DO I QUALIFY FOR?

Do any of the following apply to you?

1. Currently hospitalized, in a nursing facility, confined to a bed, receiving hospice care, confined to a wheelchair or bed, or using oxygen equipment to assist in breathing.

2. Has a condition requiring bone marrow, stem cell, or organ transplant, kidney disease requiring dialysis, Alzheimer’s disease, dementia, mental incapacity, Lou Gehrig’s disease (ALS), acquired immune deficiency syndrome (AIDS), or AIDS-related complex (ARC), or has been diagnosed as having a life expectancy of 12 months or less.

~ If you said yes to either of these, you qualify for a guaranteed acceptance policy

~ If neither applies, continue to next question

Within the past 12 months, have you been diagnosed or treated by a medical professional or had surgery for any of the following.

1. Heart attack, heart valve disorder, heart blockage, stroke or transient ischemic attack (TIA), any lung or respiratory disorder requiring the use of a nebulizer, internal cancer, melanoma, lymphoma, multiple myeloma, leukemia, systemic lupus (SLE), chronic pancreatitis, chronic hepatitis, cirrhosis, diabetes diagnosed before the age of 40, or treatment or counseling for alcohol or drug abuse

2. Advised by a medical professional to have diagnostic testing that has not been completed or for which the results have not been received

~ If you said yes to either of these, you qualify for a modified benefit policy

~ If neither applies, continue to next question

Within the past 24 months, have you been diagnosed or treated by a medical professional or had surgery for any of the following?

1. Aneurysm, heart attack, any circulatory disorder, stroke or transient ischemic attack (TIA), emphysema, chronic obstructive pulmonary disease (COPD), internal cancer, melanoma, leukemia, any connective tissue disorder, ulcerative colitis, or Crohn’s disease

2. Neuromuscular disorder, including, but not limited to, cerebral palsy, multiple sclerosis (MS), or muscular dystrophy

~ If you said yes to either of these, you qualify for a graded benefit policy

~ If neither applies, continue to next question

At any time, have you been diagnosed or treated by a medical professional or had surgery for any of the following?

1. Congestive heart failure, cardiomyopathy, Parkinson’s disease, any permanent paralysis, or amputation caused by disease

2. Are you dependent on a wheelchair or motorized mobility device?

~ If you said yes to either of these, you qualify for a graded benefit policy

~ If neither applies, you qualify for a level/immediate benefit policy

Note 1: The questions above are general application questions. Health questions vary by company, so we really need to evaluate your particular situation to get you the best plan.

Note 2: We do not have plans for people older than 89.

FINAL EXPENSE LIFE INSURANCE PROS AND CONS

Is the most popular life insurance for seniors the right choice for you? Here are the pros and cons to final expense life insurance:

Pros of Final Expense Life Insurance

No medical exam: That’s right, you don’t have to undergo a medical examination in order to qualify for final expense. You answer a few health questions instead, over the phone or by filling out the paper application.

Whole life insurance: Most life insurance products fall into one of two categories, term life insurance, and whole life insurance. Unlike term, whole life insures you for the rest of your life. As long as you pay the premium, you will remain insured.

The price won’t go up: Once your policy goes in force, your price is locked in, no matter what.

Flexible coverage: Final expense coverage typically ranges from $2,000 to $40,000, with $10,000 being most popular. How much you want is entirely up to you. The average cost for a funeral is between $7,000 and $12,000. Perhaps you already have assets and are simply looking to close the gap, or you simply want enough coverage to take care of the whole bill.

Healthy or not, you can get insured: If you are over age 55, there’s a final expense policy available to you, regardless of your health.

Cons of Final Expense Life Insurance

More expensive than term: Since final expense is a whole life insurance product, it’s naturally more expensive. With a term policy, you get insured for a predefined term, such as 10, 20 or 30 years. Once the term ends, you need to renew at a much higher cost, or you are no longer insured. That being said, healthy individuals in their 50’s can still qualify for term life insurance, with more coverage, for less.

You could save money with a lower death benefit: No one knows their life expectancy, but if you are in your 50’s or early 60’s, with no health problems, chances are likely you’ll have many years ahead of you to put aside some cash. In this case, going with a smaller death benefit, and putting more money into savings could pay off in the long run.

FINAL EXPENSE INSURANCE QUESTIONS

We’ve answered some common questions people ask us when they’re shopping for a final expense policy.

What health questions will I be asked?

When you apply for a final expense life policy, the insurance provider will ask you a series of health questions. This is to determine what type of final expense you will qualify for. The health questions are very simple and straightforward, such may include, but are not limited to:

~ Do you use nicotine products?

~ Are you currently confined to a wheelchair, hospitalized, receiving hospice care?

~ In the past 2 years, were you diagnosed or treated for: cancer, chronic kidney disease, tuberculosis, liver disease?

​~ In the past 18 months, were you diagnosed or treated for: aneurysm, heart attack or failure, stroke, chest pain?

It’s important to note that regardless of how you answer these questions, you can get insured. However, if you are applying for a level final expense policy (the best price), and you do have a lot of health problems, you won’t qualify for that product and price. Instead, you may qualify for graded or guaranteed, which costs more.

It is for this very reason that you should always use a brokerage, such as True Blue Life Insurance, instead of applying to the company directly. When you get a quote and submit an application request, we’ll talk to you before we actually send your application in. This way, we can ask what health conditions you have, and any other variables that will affect the outcome. We do this, so you have the best chance of applying, for the best price.

How long before my final expense policy goes into effect?

Once you get a final expense quote and submit your application request, a friendly, licensed, True Blue agent will contact you. They will answer any questions you have, as well as make sure you found the best policy. If we find a lower price policy that will be better for you, we’ll present it to you.

Once you apply, you simply have to answer a dozen or so health questions, provided by the insurance carrier. Depending on the carrier, it could take a few days, to as little as 15 minutes, to get your policy in force.

Again, if time is of the essence, simply contact us. We know what companies are the fastest, and most lenient.

Why do I need final expense insurance?

With the cost of funeral expenses soaring, final expense insurance can help cover costs incurred during the end of life, such as medical bills and other expenses. Although that is the ideal reason to use this type of coverage, beneficiaries can use the death benefit payout however they want.

Who needs final expense insurance?

This coverage is best suited for individuals over the age of 50 who are looking for a very small policy with the intention of using the proceeds to help protect the surviving family members’ responsibility for funeral arrangements. However, the payout can be used by the beneficiaries as they see fit.

Which final expense insurance companies have the best rates?

Insurance rates are constantly changing. Each final expense insurance company sets its rates based on the company’s underwriting criteria, and that can change from month to month or year to year.

The best way to figure out which of the final expense insurance companies is right for you is to reach out to an agency like Generation One Insurance and let our agent shop the insurance policy that makes the most sense for your current needs.

Is a final expense life insurance policy right for me?

Depending on your current age and medical situation, a final expense policy may be beneficial for those who are simply looking to have some extra coverage for when they pass and a term life insurance policy with a larger death benefit is not currently offered to them or too expensive.

In some cases, this may be all the coverage someone can afford or qualify for.
If you are unable to qualify for a policy that has more or better benefits due to age or other disqualifying circumstance, a final expense life insurance policy could be exactly what you need to ensure your expenses are covered in the event you pass, allowing your family to have a more stress-free transition.

Generation One Insurance

ADDRESS 1: 1833 Eastern Hills Drive, Garland, TX 75043

ADDRESS 2: 12005 Ford Rd. Suite 5020, Dallas, TX 75234

HOURS OF OPERATION:

8:00 am – 8:00 pm Monday – Sunday

Email address: beauarchffl@gmail.com

Phone number: 214-205-2105