Have you considered how your family or friends will afford your end-of-life arrangements? Getting insurance for burial costs or funeral expenses can take some of the stress away. These types of policies can cover some or all of the costs related to the end of your life.
Final expense insurance – also known as senior burial insurance – is a type of minimal coverage life insurance. It provides a small death benefit (generally up to $50,000) to cover end-of-life expenses.
If you are planning to purchase life insurance for funeral costs or other related end-of-life expenses, it is important to explore all your options. This includes traditional life insurance, which is a more comprehensive type of coverage policy.
Traditional life insurance is for more than just end-of-life expenses. These policies provide a form of financial support to your loved ones when you die. Traditional life insurance is most commonly purchased by younger adults planning for the “what ifs;” if they were to die unexpectedly, they can rest a bit easier knowing their family members will receive emergency financial support.
On the other hand, final expense insurance for seniors is a better option for older adults who may not have a traditional life insurance policy. It does not act as a means of financial support; the death benefit is only meant to cover costs related to end-of-life planning.
Final expense insurance is also ideal for seniors who no longer need comprehensive coverage. For example, those who do not have dependents may not need a large death benefit, since they do not have dependents relying on them for income.
This difference means that finding affordable final expense insurance policies may be a bit easier than finding affordable term life insurance. Since final expense insurance is strictly meant to cover funeral, burial and other end-of-life costs, the death benefit (the total amount of money your loved ones will receive after you die) is smaller. A smaller death benefit means smaller monthly premiums, which means a more affordable coverage option.
It also means that senior burial insurance is easier to get. Term life insurance generally requires a complete medical exam for anyone interested in purchasing a policy.
However, nearly anyone can qualify to purchase a final expense insurance policy without a physical exam. Likewise, most applicants can qualify well into their 80s.
Learn more about how to qualify for a final expense life insurance policy and where to purchase one in the next slide.