Final expense insurance is a life insurance policy that has a lower death benefit and is designed to cover the cost of your funeral and burial. This type of policy is designed for older adults, usually aged 50 and older, who are in the process of planning their estate and end-of-life issues. A final expense policy may be purchased in addition to your regular life insurance policy. This type of insurance usually does not need a medical examination, which may make them a good option for those who are at high-risk for other types of insurance.

If you already have a life insurance policy, adding a final expense policy may still be beneficial. Your life insurance will cover costs not associated with your funeral and burial, such as fees to register your will, costs of lodging for family members and other things associated with the death of a loved one. Final expense insurance only covers the cost of your funeral and burial as well as some costs associated with that. If you do not have life insurance it may be difficult to find a policy you can afford, especially if you are over the age of 80 or have significant medical conditions. Therefore, final expense insurance allows you to cover the cost of your funeral and burial without relying on your loved ones to pay those expenses out of your estate or you’re their own pocket.

The cost of final expense insurance depends on the type of policy with the average costing between $30 and $70 per month. The price will depend on your age, health, sex, coverage amount and which company you choose. If you are over the age of 70, even if you don’t have health conditions, you will likely pay a higher premium. Younger applicants who are in good health would see a lower premium. Even if you are younger, if you have significant health conditions, your premiums will be higher.

There are two main types of final expense insurance – simplified and guaranteed issue. Simplified issue is designed for those who may have minor health issues that make them ineligible for traditional life insurance. It is usually more affordable than guaranteed issue policies. Guaranteed issue is for those who may have serious health problems. There is no medical examination and no health questions. Because there is a higher risk, these plans usually have lower coverage amounts and the premiums are higher. In many cases, guaranteed issue policies will not pay the full benefit until the policy has been active for a certain period. If you die before that period is up, your loved ones may get a lower payout than the full premium.

Final expense insurance covers any funeral home rental fees and other costs, such as a viewing, service or memorial. It also may cover the cost of transportation to and from a cemetery if you choose burial. If you do choose burial, the insurance may cover the cost of a burial plot, grave marker and casket as well as embalming fees. If you choose cremation, the policy ma cover the cost of an urn, the cremation and transportation of your remains. The fee for an officiant, music and flowers for your service may also be covered by the insurance policy. The funds are not restricted, however. Your loved ones can use the funds to pay end-of-life medical bills or hospice care as well as to cover any debt that you may have left behind. Your spouse may be able to use the funds for day-to-day expenses or they can be set aside for children or grandchildren.

There are several reasons why you may want to consider a final expense insurance policy even if you have life insurance. More than 80 percent of people who died in 2019 were on Medicare before the passed away and Medicare only paid about $153 per day for medical services prior to their death. Home care can cost as much as $193 per day while in-home respite care is $173 per day. If you must go into an assisted living facility, the cost can be as high as $744 per day. Your loved ones could be left with those bills to pay out of your estate, including any insurance policies you may have. In addition, 73 percent of Americans die with debt. The average student loan is $25,391 and car loan $17,111. The average person also has $14,793 in personal loans and $4,531 in credit card debt. Your loved ones could be left paying those debts, especially if you leave behind a spouse whose name is also on the debt. Even if you do not have a spouse whose name is on the money owed, your estate could be held responsible for them, reducing how much your family has for your burial.

Based on research conducted by such consumer agencies as Investopedia, Consumer Reports, Money Geek and Nerd Wallet, the five best final expense insurance options available include:

• AARP Easy Acceptance Life Insurance – backed by New York Life, AARP offers coverage limits of $25,000 with monthly premiums ranging from $106 to $285. You can get a free quote online and no medical examination is required. It is important to note that policies are not available nationwide and there are limited benefits for the first two years.
• Mutual of Omaha – coverage is guaranteed up to the age of 85 and there are no examinations or health questions. Rates range from $30 to $99 per month and there is guaranteed coverage. There are limited benefits the first two years.
• State Farm – a very straightforward policy with no hidden fine print. There are no medical examinations and no waiting periods. Coverage is limited to $10,000 and policies are not available in all states. Their premiums are higher than other final expense insurance policies.
• Gerber Life Insurance – with four policy types available, Gerber Life Insurance has simple policies with guaranteed approval for anyone between the ages of 50 and 80. Costs range from $85 to $350 per month and there is a fast, online application process. Premiums are fixed but there are limited benefits for the first two years.
• AAA – offers significant discounts for members and you have the option of bundling insurance policies. The $60 per year fee is waived for members and premiums range from $89 to $276 per month. Acceptance is guaranteed for anyone between 45 and 85 with premiums that never go up. There are limited benefits for the first two years.

If you do not have life insurance and are either over the age of 70 or have serious health conditions, final expense insurance is a very good deal. It will allow your loved ones to pay your final expenses without the financial burden. However, there are some disadvantages to the policies. You may have a waiting period, usually two years, before the full amount of the policy can be paid. Premiums may also be higher than regular life insurance, but because there are no medical questions or examinations, approval is usually guaranteed.

If you are in the market for final expense insurance, one way to save is by signing up for BestSeniorDiscounts.com. There is never a registration fee and you can begin accessing savings immediately. They offer a wide range of final expense insurance options at significant savings, allowing you to purchase coverage for your end-of-life expenses in order to give your loved one piece of mind that those costs are covered when you do pass away. Sign up by filling out the easy online form today.