There are many types of life insurance policies out there and its hard to navigate them all on your own. So let’s skip the lengthy introductions and get into what final expense life insurance is and which type of final expense policy is right for you.
Essentially, final expense life insurance is a policy designed to cover the expenses that come with your death. This includes things like funeral costs, hospital bills, and any legal work that may come with your passing. Final expense life insurance is usually defined by a being a permanent policy with no need for a medical exam to get an approval and a limit on the amount of coverage that you can get. Let’s break down the 3 different types of final expense policies.
Level
The most ideal type of final expense policy is a level permanent policy. This policy is designed to lock in a premium and a death benefit amount for the entirety of your life. Unlike term life insurance it will not expire at any specific date. Unlike traditional whole life insurance policies, this final expense product doesn’t require a medical exam to get approved. All you have to do is answer “No” to a few health questions. If you can do that and it checks out, you’re approved for coverage. This policy is usually capped at a $50,000 to $100,000 coverage amount. The cap will depend on the life insurance company. The great part of the level policy is there is no waiting period like there is with the Graded and Guaranteed Issue final expense policies.
Sample Questions
- Do you currently receive kidney dialysis or require oxygen use?
- Do you require assistance to feed, dress, bathe, or take medication?
- Are you currently confined to a hospital or medical facility?
- Do you have a terminal illness?
- In the last 12 months have you been confined to a hospital more than once?
- Have you been diagnosed with any type of cancer in the last 12 months?
- Have you used any illegal drugs, been treated for drug abuse? (12 months)
In the past 2 years:
- Have you been treated or diagnosed for:
- Alzheimer’s or dementia?
- Any form of cancer?
- Hear or circulatory disorders?
- Hear surgery for any heart disorder?
- Sickle cell anemia or kidney disease?
- Ling disease?
- ALS or Neurological disorders?
- Schizophrenia or Bipolar Disorder?
In the past 10 have you been convicted of a felony or currently have pending charges for a felony?
**These are just sample questions
Graded Benefit
Like all final expense policies this one provides coverage without the need for a medical exam. It’s for people that didn’t quite qualify for a level final expense policy but for those that aren’t in bad enough health for a guaranteed issue. The graded policy gets it’s name from the way it offers the death benefit payout in the beginning stages of a policy. For example, depending on the company, it may offer a 20% payout if you die in the first year, a 50% payout in the second and a full payout in the third. The amounts vary on company and product type. To get approved you would have to answer a few basic questions. The coverage cap for this type of policy is $25,000 to $50,000.
Guaranteed Issue
This is a final expense policy for those that can’t qualify for any other type of life insurance coverage. With this type of policy there is no exam, and no questions asked. So it lives up to it’s name by guaranteeing coverage. It is automatic approval but has a two year waiting period. This means that if you die within the first two years of the policies inception, then your beneficiaries will only get the premiums you paid in back. However, if you die passed the two year mark, your beneficiaries will receive a full death benefit payout. The cap for this coverage ranges from $10,000 to $25,000 depending on the company.
Final Expense is for Funeral Expenses
Final expense life insurance is meant to last you a lifetime and pay off all the costs that will be associated with your death. It isn’t meant to leave your family with large sums of money, but it is meant to help prevent your death from being a financial burden to those around you. The type of final expense policy you should get will all depend on what you can qualify for. It’s best to talk to your agent and see what option works for your specific situation. Now let’s look at what companies offer final expense policies.
Final Expense Life Insurance Companies
Not all life insurance companies offer final expense policies. Aside from being with different companies, certain final expense products will offer different benefits and limitations. What they all do have in common is that they are easy issue and don’t require a medical exam to take place. Let’s cover some of the most popular final expense life insurance companies and the their products.
Assurity
Assurity has a simplified whole life final expense product that comes with one application and a few questions about your health. Based on your health history you will be eligible for one of three plans. All of these products can be done with an E-application over the phone. But unlike most final expense plans, some of these come with a health check.
- Level Death Benefit – this is a policy you’re eligible for if you have a good history of health. For this reason its the most affordable one of the three. If you can answer “no” to all of the application questions then you’re approved. The coverage is available up to age 80 with a death benefit between $5,000 to $50,0000
- Graded Death Benefit – the graded death benefit policy is a little more lenient in terms of health history. Instead of having answer no to all the health questions, you’d only have to answer “no” for two of the sections on the application. You have to be between the ages of 40 and 80 in order to apply. The death benefits ranges from $5,000 to $35,000. This policy is “graded” which means the death benefit payout isn’t immediately accessible. If death is due to natural causes then there will only be a 40%payout in year one, 75% if you die in year two, and 100% in year 3 and on.
- Modified Death Benefit – this is for those that had a trouble securing a policy due to poor health. For this qualification you would only have to answer no to 1 section of the application. If your death is the results of an accident there will be a full death benefit paid out from $5,000 to $25,000. However if the death is the results of natural causes you would only get your premiums returned to you below a 2 year period. You would get 110% of the premiums paid in if you die within the first year. 220% of premiums paid in the second year of coverage and a 100% death benefit payout in year three and on. The coverage is available between ages of 40 to 80 for up to $25,000.
*Verify plan details with your agent as it can vary state to state.
Kemper Life
Kemper offers a guaranteed issue product, which means there is no exam and no questions asked. Once you apply you’re approved. It does come with a 2 year waiting period for a full death benefit payout. The coverage is available for clients between ages of 40 to 80 for up to $25,000 in death benefit amount.
Foresters
Foresters offers different grades of final expense policies. Like Assurity, the product you qualify for will depend on the health questionnaire. Here is a quick breakdown of each product.
- Plan Right Level – this product is for those who answer the most favorably on the health questionnaire. It will provide a death benefit payout with no waiting period and offers coverage of $35,000 up to age 80 and $15,000 up to age 85.
- Plan Right Graded – this is a graded final expense policy which means if you die in year 1 your beneficiaries will get 30% payout, year 2 70% and full payout passed year 3. The coverage cap is at $20,000 for ages 50-80 and $10,000 for ages 81-85.
- Plan Right Modified – this is a more lenient product in terms of health questions but still not issued on a guaranteed basis. It provides a 2 year waiting period where you only get your premiums plus 10% back in the case of death within the first two years. After two years its a full payout. Coverage cap is for 50-80 years of age at $15,000.
All of these products will require no medical exam but will consist of 3 different tiers of health questions. Depending on your answers, your qualification for product type will be determined.
Gerber Life Insurance
Gerber life insurance has a final expense product that is guaranteed issue. This means you’re approved regardless of your health. If you’re between the ages of 50 to 80 and desire between $5,000 and $20,000 in final expense coverage, then you’re qualified. Like most companies this company is “A” rated and has a great reputation. and like most guaranteed issue plans it also comes with a 2 year waiting period for full death benefit payout. The good news is that its a quick 10 to 15 minutes application that can be done over the phone with your agent and you’ve officially got a policy in place.
Transamerica
Transamerica offers an array of different life insurance products and amongst them is a final expense policy that comes with simplified, but not guaranteed issue. It comes with a cap on coverage of up to $50,000($25,000 in some states). Anyone up to age 80 is eligible for the coverage as long as they qualify based on the application questions. There is no exam required but their will be a check of your medical records and and short phone interview.
Mutual of Omaha
Mutual of Omaha has a Living Promise Whole Life Insurance policy. This is a final expense product of up to $40,000 for ages 46-85. There is no waiting period. This is because approval is not guaranteed. They will check the Medical Information Bureau(MIB), pharmacy records, and conduct phone interviews if necessary.
They also have a Graded Benefit plan which is a waiting period where only a portion of the death benefits gets paid out if death is prior to the two year mark of the policies birth. This will also involve a check of your medical and prescription records but with more lenient requirements.
Americo
Americo has an Ultra Protector Final Expense series which offers 3 different products for different tiers of qualification. Like most final expense policies the rates will stay level and there is no medical exam necessary to attain coverage. The coverage is available from 50 to 80 years of age with a cap of $30,0000. The 3 products come in the form of level, graded, and guaranteed issue. Which is similar to the product types mentioned above.
Fidelity
The final expense product with Fidelity is a graded policy with a 3 year waiting period. There will be a no exam but a check into your medical records and prescription drug check. The cap of covers is $35,000 for ages between 50 and 80 years old. Its an all electronic application and electronic signature so no paperwork required to apply.
United Home Life
United Home Life offers a few products. One of them is a final expense policy up to $100,000 with no exam but with medical questions and background check into your medical records and prescription history. For those in ill health they have a guaranteed issue product for up to $10,000 dollars in coverage and a 2 year waiting period.
Frequently Asked Questions
Q. What’s the most amount of coverage I can get?
A. For a stand alone final expense policy you can secure $100,000 at most but you would have to answer “no” to all medical questions and have your medical records qualify. For a guaranteed issue you can get in the range of $10,000 to $25,000 depending on the company.
Q. What if I need more coverage?
A. One of the things you can do is opt for traditional medical exam coverage. But if you dont qualify for that your other option would be to stack policies together. This means get one policy with one company for the max amount of coverage, and then get a policy with another company as well. Do this until you get the desired amount of coverage. This is only a good idea if you don’t qualify for traditional life insurance or group coverage.
Q. Do they check my medical history?
A. Unless the final expense policy specifies that it is “Guaranteed Issue” then you can expect them to verify the answers to your health questionnaire through the Medical Information Bureau(MIB).
Q. Can’t I just get term life insurance?
A. If you qualify for traditional term life insurance then you can. However, if you’re closer to old age it is not recommended. Term policies have an expiration date so its not ideal as a final expense tool, but more to cover the temporary responsibilities like a 20 year mortgage. Another downfall of a term policy is it can no longer be converted passed a certain age. So if you can qualify for traditional medical exam life insurance, it still makes sense to go with a permanent life insurance option.
Start Here
As an independent agency we have access to over 60 companies and represent all of the reputable final expense life insurance companies on the market. To compare final expense quotes simply visit our quoter here. Otherwise you can call us directly so we can do the shipping for you at no extra cost to you! If you have any questions feel free to hit the chat button below or leave us a comment. Welcome to InsureChance!
