Final expense insurance is a type of insurance that covers the bills a family will face after a death including all burial expenses and any outstanding debt. The ins and outs of every insurance policy can be tricky. You may have clients asking for your guidance in this type of coverage. So we want to provide important information on why final expense insurance is valuable and how it works, whether to refresh your own understanding or to share with a family who may be inquiring about it.
We know that this is a sensitive, but significant topic and it is our hope that the following information makes it easier to navigate choosing a final expense insurance plan.
It’s important to first understand the difference between life insurance and final expense insurance. Life insurance provides coverage for unexpected death and will help support the family left behind. These plans are proportionate to your income. Final expense insurance policies are more proportionate to the expense of your desired funeral. This type of insurance is important because even the lowest costs funeral homes can end up costing thousands.
The Lincoln Heritage Funeral Advantage states that “the average funeral costs between $7,000 and $9,000.” This is for a traditional funeral and includes costs associated with embalming, a casket, viewing, burial, and additional service fees. If you choose cremation, the cost isn’t much different, averaging $6,000 to $7,000.
How To Decide On Final Expense Insurance
If you already have a term or whole life insurance policy, that can be used towards funeral expenses. However, if you outlive your term life insurance plan, you will want to consider final expense insurance. If you think your family will have plenty of assets available, then these can be used for burial expenses and they won’t have to use a life insurance payout.
It’s important to keep in mind that considering the average cost of funerals is 7-9K, it could easily end up being more expensive if you wish to have a catered gathering after the funeral, for your ashes to be scattered in your favorite vacation spot, or other customized requests like these. It’s also wise to consider final expense insurance sooner rather than later as insurance companies take on more risk with older customers who are consider closer to end of life based on their age. If you buy final expense insurance in your early 50’s, you’ll pay a lower monthly premium than if you wait until your mid-70’s.
Our agents who partner with Agent Link to sell this plan know the benefits it provides for everyone involved and can help you navigate this complex decision. Ultimately, it will give you and your family peace of mind knowing that your family won’t have to carry the financial burden of your passing. Below are three trusted companies that many of our agents sell with. These companies have quality insurance plans that cover final expenses.
Foresters has an incredible reputation for final expense insurance policies through their PlanRight product, which is a simplified issue final expense insurance policy. The approval process includes a few health questions. An important note about this insurance is that there is a 2-year waiting period.
Their final expense insurance plans are on the higher end of the price range but they are a high quality and great selling product.
Although the trademarked logo for Gerber is a baby, Gerber Life Insurance isn’t just for babies. In addition to offering adult life insurance, their Guaranteed Life insurance plan is a great option for individuals ages 50-80 years old with significant health issues looking for an affordable final expense policy from a company that asks no questions and doesn’t require exams, blood draws, or urine samples.
Transelite by Transamerica is another great choice for applicants ages 16-75 who need more coverage. This product is another great Guaranteed Issue product with up to $50,000 in face amount. Applicants must sign up for an association membership for $3/month to eligible. For their main products, the maximum death benefit for applicants age 55 and under is $50,000 and $40,000 up to age 65, $30,000 up to age 75, and $25,000 up to age 85. The association membership contains its own benefits that include $5,000 of life insurance.
This is probably the most affordable “Simplified Issue” option that some of our agents utilize for their clients. Somewhat comparable to Foresters Plan Right Level Death Benefit product, they have only 7 knockout questions and an immediate death benefit. There is no 2 year waiting period.
Agent Link Provides Only the Best Carriers
We truly believe agents have access to the best carriers and plan options through a relationship with us at Agent Link. And clients can find the best coverage that makes the most sense for them and their families when they utilize agents who use Agent Link for their carrier connections. This kind of relationship and connection is vital when you find yourself wading through all the decisions and options that may be out there.
We are happy to answer any questions you may have about final expense, whether you’re an individual looking to buy a policy or an agent looking for the best option for your client. Contact us today!