Principal, LifeNet Insurance Solutions, Redmond, WA
"Final Expense" is that portion or niche that is designed for the lower end of the market, usually up to $25,000 with some carriers now going somewhat higher in death benefit. Be careful when making a purchase of this type that you have heard about all the choices that are available. In this market in particular, it's buyer beware.
President, Lane Independent Agency, Southern California
Final Expense is, as you might expect, to take care of someone's final expenses. Their funeral, and related matters. These are the smaller life insurance policies, with the lowest rates, and frequently guaranteed issuance, regardless of health. Every family should at least have one of these, so the survivors are not left to struggle with those "final expenses". Thank you. GARY LANE.
That is a great question! It is just another name for life insurance, one designed to create a concern over your mortality. In earlier years, ( and in some areas still is) it was marketed as burial insurance, when pitched to lower income families who needed help with the funeral expenses of their loved ones. There isn't a whole lot of glamour or flash when it comes to insurance, so if there is a way to grab your attention and get you to buy, believe me someone will try it. It is a solid insurance; typically more forgiving on health issues, and generally for amounts that are enough to cover funeral expenses, often with a little left over. Hope that helps, thanks for asking!
Final expense life insurance is a policy that can be used to pay off bills at the end of one's life. Because life insurance does not have to go through probate, the beneficiary will receive a check fairly quickly. It can be used to pay the funeral, cemetery costs, credit card debt, cost of putting a house on the market, garage sale or auction, even transportation for out of state family members to return home.
Co-Founder, TermInsuranceBrokers.com, Goldenzweig Financial Group, Las Vegas, Nevada
Final expense is a common term that simply refers to life insurance people buy to cover their burial expenses and other small final debts. These are whole life insurance policies that are typically $25,000 or less in the policy's face amount of coverage.
There are no medical exams for them. The responses to the yes/no health questions, a prescription check, and a phone interview with the carrier (required by most companies, but not all) are the primary underwriting criteria that the carriers look at.
If you're someone who cannot buy a final expense policy due to your health conditions, you always have the option to buy a guaranteed issue whole life policy - these are another type of final expense policies as they feature a maximum $25,000 face amount, except they feature a 2-yr graded period (if death occurs in the first 2 years of the policy, the carrier returns the premiums paid instead of paying out the death benefit, unless death occurs by accidental means). The advantage with these are that they do not ask a single health question. In short, it's pick and choose.
Please feel free to contact me for help or if you have any other questions. Thanks very much.
Mr. GoldenzweigPRO covered it extremely well. The only thing I'll add is the fact that final expense life insurance is often also referred to as "burial insurance" or "funeral insurance". All three terms refer to the same thing. It's just like the words attorney and lawyer. They are different words, but they mean the same thing.
The single most unique aspect of final expense insurance is the very limited underwriting. These policies were designed to accept many major health issues. For this reason, the majority of applicants can secure a policy that takes immediate effect in spite of being in poor health.
There's literally dozens of insurers in the market that offer final expense coverage. The key thing is to find which one looks at your health the best. It's super important to work with an independent broker that has access to mulitple companies so they can compare offers from mulitple carriers to find you the best deal.
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There are no medical exams for them. The responses to the yes/no health questions, a prescription check, and a phone interview with the carrier (required by most companies, but not all) are the primary underwriting criteria that the carriers look at.
If you're someone who cannot buy a final expense policy due to your health conditions, you always have the option to buy a guaranteed issue whole life policy - these are another type of final expense policies as they feature a maximum $25,000 face amount, except they feature a 2-yr graded period (if death occurs in the first 2 years of the policy, the carrier returns the premiums paid instead of paying out the death benefit, unless death occurs by accidental means). The advantage with these are that they do not ask a single health question. In short, it's pick and choose.
Please feel free to contact me for help or if you have any other questions. Thanks very much.
The single most unique aspect of final expense insurance is the very limited underwriting. These policies were designed to accept many major health issues. For this reason, the majority of applicants can secure a policy that takes immediate effect in spite of being in poor health.
There's literally dozens of insurers in the market that offer final expense coverage. The key thing is to find which one looks at your health the best. It's super important to work with an independent broker that has access to mulitple companies so they can compare offers from mulitple carriers to find you the best deal.