As you near the end of your life, it’s important to consider how you can ease the burden on your loved ones after you’re gone. Final expense insurance provides a way for you to do just that by covering the costs associated with your funeral and other end-of-life expenses. But with so many options available, it can be difficult to choose the right insurance company for your needs. In this guide, we’ll explore some of the best final expense insurance companies and what sets them apart from their competition.
What is Final Expense Insurance?
Final expense insurance, also known as burial insurance or funeral insurance, is a type of life insurance policy designed to cover the costs associated with your end-of-life expenses. This includes your funeral expenses, medical bills, and any other costs that may arise after your death. Unlike traditional life insurance policies that provide a lump sum payout after death, final expense insurance policies are structured to cover specific expenses related to end-of-life care.
Why Should You Consider Final Expense Insurance?
There are several reasons why final expense insurance is an option worth considering:
1. Provides Peace of Mind
By purchasing final expense insurance, you can rest assured that your loved ones won’t have to bear the financial burden of your end-of-life expenses. This can provide peace of mind not only for yourself but also for those you leave behind.
2. Affordable Premiums
Compared to traditional life insurance policies, final expense insurance policies typically have lower premiums. This makes it an affordable option for those who may not have significant savings or assets to cover these expenses.
3. Easy Approval Process
Final expense insurance policies typically have a simplified underwriting process that doesn’t require a medical exam or extensive documentation. This makes it easier for individuals with pre-existing health conditions or older age to obtain coverage.
How We Chose the Best Final Expense Insurance Companies
To determine the best final expense insurance companies, we considered several factors including:
- Financial stability and ratings
- Product offerings
- Customer service and support
- Policy features and benefits
- Premiums and affordability
Based on these criteria, we’ve identified the following as some of the top final expense insurance companies in the market today.
Top Final Expense Insurance Companies
1. Mutual of Omaha
Mutual of Omaha is a well-known insurance company with over 100 years of experience in the industry. They offer several types of life insurance products including final expense insurance. Their final expense policy called "Living Promise" is available for individuals between the ages of 45 and 85, with coverage amounts ranging from $2,000 to $40,000. Their policies also include important policy features such as guaranteed acceptance, no medical exam required, and level premiums that won’t increase over time.
2. AIG Direct
AIG Direct offers a comprehensive range of life insurance products, including final expense insurance. Their "Guaranteed Issue Whole Life Insurance" product doesn’t require a medical exam or health questions to get approved. The coverage amount ranges from $5,000 to $25,000 for individuals between 50 – 85 years old. Additionally, their policies come with lifetime guarantees such as level premiums and death benefit amounts.
Transamerica is another well-known player in the life insurance industry that offers final expense policies with attractive features such as no medical exam or underwriting process up to $50,000 in coverage for individuals aged between 18 – 80 years old. They also have a unique feature called "Funeral Planning Assistance," where they provide guidance on how to plan your funeral services through trusted planning professionals without any extra cost.
4. Colonial Penn
Colonial Penn has been providing life insurance since the 1960s and offers several types of life insurance policies, including final expense insurance. Their "Guaranteed Acceptance Life Insurance" policy is designed for individuals between the ages of 50 and 85, with coverage ranging from $1,000 to $50,000. One great feature of their policies is that you won’t be declined for any medical reason. Their premiums are also locked in for life with no increases as you age.
5. Globe Life
Globe Life is one of the most prominent final expense insurance companies in the industry today, providing up to $100,000 in coverage for individuals between the ages of 18 and 80 years old. They have a guaranteed acceptance policy option that doesn’t require a medical exam or any questions about your health status to get approved. Another unique feature is they offer free accidental death protection up to age 70 with all their policies.
Choosing the right final expense insurance company can be challenging, but by considering factors such as financial stability, product offerings, customer service & support, policy features & benefits along with premiums affordability will help make it easier. You can use this comprehensive guide as a starting point to find the best final expense insurance company that meets your specific needs.
Remember: investing in a final expense insurance policy can provide peace of mind for yourself and your loved ones during difficult times when finances might not be on top priority due to emotional turmoil after losing someone close.
What is final expense insurance?
Final expense insurance, also known as burial or funeral insurance, is a type of life insurance policy that covers the costs associated with end-of-life expenses. This typically includes funeral and burial costs, but can also include outstanding medical bills, credit card debt, and other final expenses.
Why should I consider purchasing final expense insurance?
Purchasing final expense insurance can provide peace of mind for both you and your loved ones. By having this type of coverage in place, you can ensure that your end-of-life expenses will be covered and your family won’t be burdened with financial stress during an already difficult time.
How do I choose the best final expense insurance company?
To choose the best final expense insurance company for your needs, it’s important to research different providers and compare factors such as premium rates, coverage options, customer service ratings, and financial stability ratings. You may also want to consider working with an independent agent who can help guide you through the process.
What are some of the most popular final expense insurance companies?
Some of the most popular final expense insurance companies include Mutual of Omaha, AARP/New York Life Insurance Company, Colonial Penn Life Insurance Company, and Gerber Life Insurance Company. However, it’s important to research multiple providers to find the one that best fits your specific needs.
Are there any age restrictions when it comes to purchasing final expense insurance?
While age restrictions may vary depending on the provider, many final expense insurance policies are designed for individuals over 50 years old. However, some providers offer coverage for individuals as young as 40 or as old as 85. It’s important to research different providers to find one that offers coverage within your desired age range.
How much does final expense insurance typically cost?
Final expense insurance premiums can vary depending on a variety of factors, including your age, health status, coverage amount, and provider. However, premiums for this type of coverage tend to be relatively affordable compared to other types of life insurance policies.
Can I customize my final expense insurance policy to fit my specific needs?
Many final expense insurance providers offer customizable policies that allow you to tailor your coverage to fit your specific needs. This can include choosing the amount of coverage you need, selecting different riders or benefits, and adjusting your premium rate. It’s important to discuss your options with a provider or agent and select the policy that best fits your needs.
What happens if I pass away before paying off my final expense insurance policy?
If you pass away before paying off your final expense insurance policy, any unpaid premiums will typically be deducted from the death benefit paid out to your beneficiaries. However, some providers may offer an option to waive premiums in the event of your death or provide additional benefits for beneficiaries who are left with unpaid premiums.
How do I apply for final expense insurance?
To apply for final expense insurance, you will typically need to fill out an application with a provider or agent and undergo a medical underwriting process. This may involve answering questions about your health history and possibly completing a medical exam or providing medical records. Once approved, you can begin paying premiums and have peace of mind knowing that your end-of-life expenses will be covered.
Is it possible to change my final expense insurance policy after purchasing it?
Yes, it is often possible to make changes or adjustments to your final expense insurance policy after purchasing it. This may include changing the amount of coverage you have or adjusting your premium rate based on changes in your health status or financial situation. However, it’s important to discuss any changes with your provider or agent to ensure that you are making the best decision for your needs.