As we all know, death is inevitable. It is also true that it is an uncomfortable topic to talk about. But, planning for the inevitable can bring peace of mind to you and your loved ones. One way to plan for your final expenses is through purchasing final expense insurance. In this article, we will discuss what final expense insurance is and the top companies that offer this type of coverage.
What is Final Expense Insurance?
Final expense insurance is a type of insurance that is designed to cover the expenses related to a person’s death. These expenses may include funeral costs, burial expenses, and other end-of-life expenses. Final expense insurance is also known as burial insurance, funeral insurance, or end-of-life insurance. This type of insurance is typically purchased by seniors, although it can be purchased by anyone looking to plan for their final expenses.
How Does Final Expense Insurance Work?
Final expense insurance is a type of permanent life insurance. This means that it has no expiration date and provides coverage for the rest of your life. When you purchase a final expense insurance policy, you will be required to pay a premium each month. This premium is based on your age, health, and the amount of coverage you need. When you pass away, your beneficiaries will receive a death benefit. This death benefit can be used to pay for your final expenses.
It is important to note that final expense insurance policies typically have a lower death benefit than traditional life insurance policies. This is because they are designed to cover only a person’s final expenses, rather than providing long-term financial support for their loved ones.
Who Needs Final Expense Insurance?
Final expense insurance is designed for anyone who wants to plan for their final expenses. This type of insurance is particularly popular among seniors who may not have a lot of savings or other financial resources to cover their end-of-life expenses. However, anyone can purchase final expense insurance, regardless of their age or health status.
If you have a family history of long life, you may want to consider purchasing final expense insurance. This is because you may outlive your retirement savings, leaving your loved ones with the burden of paying for your final expenses.
The Top Final Expense Insurance Companies
There are many insurance companies that offer final expense insurance. Below are some of the top companies in this industry.
Company Name |
Rating |
Types of Policies Offered |
|---|---|---|
AIG |
A+ |
Level Premium, Modified Premium, Guaranteed Issue |
Mutual of Omaha |
A+ |
Level Premium, Graded Benefit, Guaranteed Issue |
Transamerica |
A+ |
Level Premium, Graded Benefit, Guaranteed Issue |
Lincoln Heritage |
A- |
Level Premium, Modified Premium, Guaranteed Issue |
Gerber Life |
A |
Level Premium, Graded Benefit |
AIG
AIG is a top-rated insurance company that offers final expense insurance policies. They offer three types of policies: level premium, modified premium, and guaranteed issue. Level premium policies provide a fixed premium for the duration of the policy. Modified premium policies have a lower premium in the first few years, which increases over time. Guaranteed issue policies require no medical exam or health questions.
AIG is known for their excellent customer service and competitive rates. They also offer a variety of other insurance products, including life insurance, annuities, and long-term care insurance.
Mutual of Omaha
Mutual of Omaha is another top-rated insurance company that offers final expense insurance. They offer three types of policies: level premium, graded benefit, and guaranteed issue. Level premium policies provide a fixed premium for the duration of the policy. Graded benefit policies have a lower death benefit in the first few years, which increases over time. Guaranteed issue policies require no medical exam or health questions.
Mutual of Omaha is known for their excellent customer service and financial stability. They also offer a variety of other insurance products, including Medicare Supplement insurance and long-term care insurance.
Transamerica
Transamerica is a well-known insurance company that offers final expense insurance policies. They offer three types of policies: level premium, graded benefit, and guaranteed issue. Level premium policies provide a fixed premium for the duration of the policy. Graded benefit policies have a lower death benefit in the first few years, which increases over time. Guaranteed issue policies require no medical exam or health questions.
Transamerica is known for their financial stability and commitment to customer service. They also offer a variety of other insurance products, including life insurance, long-term care insurance, and annuities.
Lincoln Heritage
Lincoln Heritage is an insurance company that specializes in final expense insurance. They offer three types of policies: level premium, modified premium, and guaranteed issue. Level premium policies provide a fixed premium for the duration of the policy. Modified premium policies have a lower premium in the first few years, which increases over time. Guaranteed issue policies require no medical exam or health questions.
Lincoln Heritage is known for their excellent customer service and competitive rates. They also offer a variety of other insurance products, including life insurance and Medicare Supplement insurance.
Gerber Life
Gerber Life is an insurance company that offers final expense insurance policies. They offer two types of policies: level premium and graded benefit. Level premium policies provide a fixed premium for the duration of the policy. Graded benefit policies have a lower death benefit in the first few years, which increases over time.
Gerber Life is known for their affordable rates and excellent customer service. They also offer a variety of other insurance products, including life insurance for children and young adults.
Final Expense Insurance FAQ
Q: What is the difference between final expense insurance and traditional life insurance?
A: Final expense insurance is designed to cover a person’s final expenses, such as funeral costs and burial expenses. Traditional life insurance is designed to provide long-term financial support for a person’s loved ones in the event of their death.
Q: Can anyone purchase final expense insurance?
A: Yes, anyone can purchase final expense insurance, regardless of their age or health status.
Q: How much coverage do I need?
A: The amount of coverage you need will depend on your individual circumstances. You should consider factors such as your final expenses, your age, and your health when determining how much coverage you need.
Q: Can I purchase final expense insurance for someone else?
A: No, you cannot purchase final expense insurance for someone else without their consent.
Q: How do I choose the right final expense insurance company?
A: When choosing a final expense insurance company, you should consider factors such as their financial stability, customer service, and the types of policies they offer. You should also compare rates and read reviews from other customers before making a decision.
Conclusion
Final expense insurance can provide peace of mind to you and your loved ones by covering the expenses related to your death. There are many insurance companies that offer final expense insurance policies, each with their own unique features and benefits. By doing your research and comparing rates, you can find the right final expense insurance policy to meet your needs and budget.