Final Expense Insurance – What You Need to Know

Senior African American couple hugging on the beach watching the waves

If you’ve been researching different types of life insurance, you may have come across the term “final expense insurance” and wondered how it differs from traditional life insurance.

The short answer is, although final expense policies offer many benefits, the most important one is the role it plays in helping families cover funeral costs – an expense that’s increasing every year.

Over the past decade, the average cost of an adult funeral in the U.S. has increased by more than twenty-eight percent with the average funeral costing up to $9,000. Because of this high cost, more people are seeking ways to keep these inevitable expenses under control.

Final expense insurance – also known as burial insurance – was created to help do just that.

 

What is final expense insurance?

Because the federal government only pays $255 towards funeral expenses (and only if you qualify), it’s not uncommon for families to be left with debt after the loss of a loved one.

Final expense life insurance was created to address this problem. It’s specifically designed to cover any end-of-life expenses such as medical bills and burial costs. Commonly referred to as “burial insurance” or “funeral insurance,” final expense insurance is especially popular with seniors because it can help their family cover the costs associated with their funeral.

 

What makes it unique?

 

1. Focuses on after-life preparedness.

Most life insurance policies aren’t designed to specifically address the many costs family members pay when preparing for a funeral. Caskets alone can cost up to $10,000 depending on the style and material. This doesn’t include other typical funeral costs like transportation, preparation of the body, grave liners, flowers, or the headstone. A final expense policy can help with these costs and protect your family from experiencing a financial burden.

2. Final expense insurance is a type of whole life policy.

For most traditional whole life policies, the death benefit and the insurance premium remain the same for the life of the policy. Most whole life policies last for the life of the policyholder and some accumulate cash value. Whole life insurance is often called “permanent life” because the term of the policy isn’t limited to a specific time frame like term insurance.

3. It’s more affordable than many other insurance policies.

Because it’s typically used to cover funeral costs, the coverage amount is usually much smaller than traditional policies. On average, people insure themselves for $10,000 - $20,000, making the premiums for a final expense policy more affordable than larger policies.

4. Easy qualification.

Because the coverage amount is lower than other types of life insurance, some final expense policies don’t require a medical exam to qualify. Most policies can be issued based on answers to health questions on the life insurance application.

 

How Funeral Advantage™ - the leading final expense insurance program – is designed for seniors

For many years, Lincoln Heritage Life Insurance Company® and the Funeral Consumer Guardian Society (FCGS) have worked together as partners to ensure seniors are treated fairly when handling their final arrangements. Their overriding desire to protect seniors and their families led them to create the Funeral Advantage program.

Funeral Advantage is a final expense life insurance program designed to be a one-stop solution for seniors wanting to protect their loved ones from rising funeral expenses.

Most final expense policies don’t give you the option of planning parts of your funeral ahead of time. They may provide your family the money they need, but they don’t offer any assistance with handling funeral arrangements.

The Funeral Advantage program offers two key components that make it unique:

1. It has a life insurance cash benefit offered by Lincoln Heritage Life Insurance Company. Lincoln Heritage is the largest provider of final expense life insurance in the country.

Our final expense policy is easy to qualify for since we don’t require medical exams. Just answer a few health questions on the application. Most people can get coverage even if they have previous health conditions.

2. It includes family support services offered by the Funeral Consumer Guardian Society (FCGS) at no additional cost to every Funeral Advantage policyholder. Included in your Funeral Advantage policy is a 2-page “Final Wishes” form where you can itemize the funeral details you want. The FCGS keeps this information on file and helps your family price shop funeral arrangements when the time comes.

When a Funeral Advantage policyholder passes away, a live representative from the FCGS helps loved ones compare up to 3 different funeral homes to find the best price available. On average, families save up to $1,800 on traditional funerals and up to $600 on cremation through the FCGS.

The FCGS is not affiliated with any religion, funeral home, cemetery, or specific funeral approach, ensuring your final wishes are carried out exactly as you planned them.

 

Next steps

If you’re worried about how your family would cover your funeral costs and have been considering final expense insurance, learn more about the leading final expense program, Funeral Advantage. Funeral Advantage is the only final expense policy that includes a free membership with the FCGS.

We saved policyholder families more than $13 million on funeral costs last year alone while providing families cash when they needed it most.

To learn more about how Funeral Advantage can protect your family, click here.

To get a free final expense insurance quote, click here.

< Back to Consumer Resources