8 Best Final Expense Insurance Companies

The topic of final expense insurance is often overlooked, yet it can be a crucial consideration for individuals and their families. Many people are unaware of the existence of final expense insurance and only appreciate its importance when faced with the passing of a loved one. The average cost of a funeral can be as high as $7,000, and without proper financial planning, these expenses can quickly become overwhelming for grieving families.

This comprehensive guide aims to provide you with a detailed understanding of final expense insurance, including the coverage it offers, eligibility criteria, and key factors to consider when choosing a provider. By the end of this article, you will have the knowledge to make an informed decision about securing your family's financial future.

What is Final Expense Insurance?

Final expense insurance, also known as burial insurance or funeral insurance, is a specialized form of life insurance designed to cover the costs associated with funerals, burials, or cremations. This type of insurance is typically aimed at older adults and individuals with health conditions that may make them ineligible for traditional life insurance policies.

Unlike conventional life insurance, which is primarily focused on replacing lost income or providing a lump-sum payment to beneficiaries, final expense insurance is specifically intended to alleviate the financial burden on your loved ones after you pass away. The death benefit from a final expense policy can be used to cover a wide range of end-of-life expenses, including:

• Funeral home fees

• Casket or urn costs

• Burial or cremation expenses

• Memorial services

• Transportation costs

• Unpaid medical bills

• Outstanding debts

By having a final expense insurance policy in place, you can ensure that your loved ones are not left to shoulder these expenses, allowing them to focus on the grieving process without the added stress of financial worries.

Is Final Expense Insurance Worth It?

Whether final expense insurance is worth it for you depends on your unique financial situation and priorities. Here are some factors to consider:

Financial Stability: If you have a substantial amount of savings or other life insurance coverage that can adequately cover your final expenses, then final expense insurance may not be a necessary investment. However, if you have limited financial resources or are concerned about burdening your family with these costs, final expense insurance can provide valuable peace of mind.

Expected Funeral Expenses: The cost of funerals, burials, and cremations can vary widely depending on your location, personal preferences, and the services you choose. Researching the average costs in your area can help you determine if final expense insurance is a prudent investment.

Family's Ability to Cover Costs: Consider your family's financial capacity to cover your final expenses without the help of insurance. If your loved ones would struggle to afford these costs, final expense insurance can alleviate this burden.

Comparison to Traditional Life Insurance: While final expense insurance may offer convenience in terms of simplified underwriting and availability to individuals with health conditions, it can also come with higher premiums and limited coverage. Carefully compare the terms, costs, and benefits of final expense insurance against traditional life insurance options to ensure you are making the best choice for your needs.

Ultimately, the decision to purchase final expense insurance should align with your financial circumstances, your desire to protect your loved ones, and your overall estate planning goals. Consulting with a financial advisor or insurance expert can help you weigh the pros and cons and make an informed decision.

Is Burial Insurance the Same as Funeral Insurance?

Burial insurance, funeral insurance, and final expense insurance are often used interchangeably, as they all refer to the same type of coverage. These terms all describe a life insurance policy specifically designed to cover the costs associated with end-of-life arrangements.

While the terminology may vary, the core purpose of these insurance products is the same: to provide financial protection for your loved ones and ensure that your final wishes are honored without burdening them with the expenses.

Some key similarities between these types of insurance include:

• Coverage for funeral, burial, or cremation costs

• Simplified underwriting process with no medical exams required

• Guaranteed acceptance for individuals with pre-existing health conditions

• Fixed premiums that do not increase over the life of the policy

• Guaranteed death benefit that does not decrease over time

The main distinction between these terms may lie in the specific marketing or branding used by different insurance providers. However, at their core, they all serve the same purpose of providing financial security for your final expenses.

How Much Does Burial Insurance Cost?

The cost of burial insurance can vary significantly based on several factors, including:

Age: Younger individuals generally qualify for lower premiums, as they pose a lower risk to the insurance provider. As you get older, the premiums tend to increase.

Health Condition: Individuals with pre-existing health conditions may be subject to higher premiums or limited coverage options, as the insurance provider assesses their risk profile.

Gender: On average, women tend to pay slightly lower premiums than men for the same coverage due to their longer life expectancy.

Smoking Status: Smokers typically face higher premiums compared to non-smokers, as their increased health risks are factored into the cost of the policy.

Coverage Amount: The death benefit you choose for your final expense insurance policy will directly impact the premium you pay. Higher coverage amounts generally result in higher monthly or annual premiums.

Insurance Provider: Different insurance companies may offer varying rates for similar coverage, so it's essential to compare quotes from multiple providers to find the most competitive option.

As a general guideline, burial insurance premiums can range from as little as a few dollars per month for younger, healthier individuals to several hundred dollars per month for older adults with health conditions. It's important to obtain multiple quotes and carefully consider your budget and coverage needs to find the most suitable final expense insurance policy for your situation.

Top 8 Final Expense Insurance Providers

To help you navigate the final expense insurance landscape, we've compiled a list of the top 8 providers in the industry, based on their financial stability, customer satisfaction, and the breadth of coverage they offer.

1. Mutual of Omaha Mutual of Omaha is a well-established insurance provider with an A+ rating from AM Best and a strong reputation for customer service. They offer a simplified whole life insurance policy called "Living Promise," which features a 2-year waiting period, no medical exams, and coverage amounts ranging from $2,000 to $40,000. Mutual of Omaha is particularly well-suited for individuals with health conditions such as diabetes, arthritis, and sleep apnea.

2. Aetna/CVS Health Aetna, now a part of the CVS Health family, has been in the insurance business since 1853 and holds an A (Excellent) rating from AM Best. Their final expense insurance product, "Accendo Preferred/Standard," offers coverage of $2,000 to $50,000 for individuals aged 40 to 89. Aetna's underwriting is flexible, accommodating a range of health conditions, including obesity, COPD, and heart-related issues.

3. Royal Neighbors of America Royal Neighbors of America has been providing life insurance coverage since 1895 and maintains an A (Excellent) rating from AM Best. Their "Simplified Issue Whole Life" policy offers $7,000 to $30,000 in coverage for individuals aged 50 to 80, with a focus on accommodating applicants with health concerns such as diabetes, blood clots, and various types of cancer.

4. Trinity Life/Family Benefit Life Trinity Life/Family Benefit Life, founded in 2007, offers its "Golden Eagle" final expense policy, which provides $2,500 to $25,000 in coverage for individuals aged 50 to 85. They are known for their competitive premiums, especially for non-smokers, and a liberal underwriting approach that considers conditions like seizures, atrial fibrillation, and multiple sclerosis.

5. Liberty Bankers Life Liberty Bankers Life, established in 1958, provides final expense coverage through its "SIMPL Preferred" product. The policy offers $3,000 to $40,000 in coverage for individuals aged 18 to 80 and is particularly well-suited for those with health conditions such as hepatitis, kidney disease, and mental health disorders.

6. American Amicable American Amicable, founded in 1910, offers its "Senior Choice" final expense insurance product, which provides $2,500 to $35,000 in coverage for individuals aged 50 to 85. The company is known for its quick approval process and willingness to insure applicants with conditions like blood thinners, atrial fibrillation, and mental health disorders.

7. Guarantee Trust Life (GTL) Guarantee Trust Life, established in 1936, offers its "Heritage Plan" final expense policy, which features a 2-year graded death benefit. The coverage amounts range from $2,500 to $20,000 for individuals aged 40 to 85, and $2,500 to $10,000 for those aged 86 to 90. GTL is a good choice for those seeking a graded policy, including those who use oxygen (not continuously) or are older than 90.

8. AIG (American General) AIG, founded in 1919, provides a "Guaranteed Issue Whole Life" final expense insurance policy, which offers $5,000 to $25,000 in coverage for individuals aged 50 to 80. This type of policy is particularly beneficial for those with complex health histories, as it does not require a medical exam or health-related inquiries.

When Choosing a Final Expense Insurance Provider

Selecting the right final expense insurance provider is a crucial decision that can have a significant impact on your family's financial well-being. Here are some key factors to consider when choosing a provider:

Coverage Amounts: Ensure the provider offers coverage limits that align with your expected funeral and end-of-life expenses. Consider the potential costs in your local area and choose a policy with a death benefit that can adequately cover these expenses.

Underwriting Flexibility: If you have pre-existing health conditions, look for providers that have a more lenient underwriting process and are willing to insure individuals with a range of medical issues. This can help you secure coverage even if you may not qualify for traditional life insurance.

Financial Strength: Check the financial stability and ratings of the insurance providers you are considering. Look for companies with high marks from reputable rating agencies, such as A.M. Best, to ensure they have the financial resources to fulfill their obligations.

Premiums and Policies: Compare the premiums and policy features offered by different providers. Look for fixed premiums that will not increase over time, as well as policies that have a guaranteed death benefit and no decrease in coverage.

Customer Service: Research the customer service reputation of the insurance providers, including reviews, complaint history, and the availability of dedicated support for final expense insurance customers.

By considering these factors, you can make an informed decision and choose a final expense insurance provider that best meets your needs and provides your loved ones with the financial protection they deserve.

Conclusion

Final expense insurance is a valuable tool for ensuring that your funeral and end-of-life costs are covered, relieving your loved ones of this financial burden during a difficult time. By understanding the different types of final expense insurance, the costs involved, and the top providers in the industry, you can make an informed decision that aligns with your personal and financial goals.

Remember, the decision to purchase final expense insurance should be based on your unique circumstances, including your current financial stability, expected funeral expenses, and your family's ability to cover these costs. Consulting with a financial advisor or insurance expert can help you navigate the options and choose the best policy to provide you and your loved ones with the peace of mind you deserve.