Protection for when your family needs it most.

Final expense insurance is designed to pay for costs at the end of your life. That can include funeral or burial expenses, medical bills or even credit card debt. Since the average funeral costs $10,000 or more, final expense insurance can help you protect your family from the financial stress of these costs.

Final expense insurance coverage amounts are much lower than typical life insurance coverage, ranging from about $5,000 to $35,000. That means final expense insurance is one of the most affordable types of coverage out there. Some carriers guarantee your monthly premiums will never go up, which is especially helpful if you live on a fixed income. Final expense insurance also doesn’t require a medical exam, so even people who have had health issues can often get covered.

Final expense insurance typically offers a benefit between $5,000 and $35,000 to help your family pay for your end of life costs. While your loved ones can use the tax-free cash payout from final expense insurance on whatever they like, people generally use it to pay for final expenses, including:

• funeral home fees
• burial or cremation costs
• a casket or urn
• a burial plot if you’re being buried
• other items for the ceremony, like flowers, music, and venue rental

People often also use final expense insurance for expenses like:

• medical bills
• credit card or other debts
• housing payments for a spouse, like a mortgage or assisted living facility
• money for a spouse to live on
• leaving a legacy for kids or grandkids

Once you pass away, your final expense insurance carrier will provide a cash payment your family can use to pay expenses after your death.

There are two types of final expense life insurance:

• Simplified issue. Simplified issue final expense is a type of life insurance that works well for people who may not qualify for a fully underwritten life insurance policy, but are only considered moderate risk. You’ll have to answer a detailed medical questionnaire, but there’s no medical exam involved. Coverage amounts typically go up to $35,000, and final expense insurance rates are more affordable than the other main type of final expense, guaranteed issue.
• Guaranteed issue. Guaranteed issue is designed for individuals with serious health conditions. There are no health questions or medical exams involved. Anyone can be approved, as long as you meet the age requirements. This type of insurance is more expensive and coverage amounts are lower than simplified issue insurance, but it can help provide peace of mind if other types of insurance are out of reach. Keep in mind that these policies also typically have a graded period. If you die during the first few years of coverage, your policy will just pay out the premiums you put in, plus interest. After those first few years, the death benefit, and amount of coverage, is the same throughout your lifetime.

Not sure what to pick? eFinancial can help you choose what’s best for you.

Life insurance riders are features you can add to a life insurance policy to customize your coverage even more. With final expense insurance, one of the most important rider options is a living benefit rider. If you meet certain qualifications, these riders allow you to use money from your death benefit to help with expenses while you’re still alive.

It depends on your situation. In addition to covering funeral costs, you’ll probably want enough coverage to take care of any credit card debt or other unpaid bills. Many people also want to cover their family’s household expenses for a few months after they pass away. Finally, you should take inflation into account. For a more accurate estimate and to get a final expense insurance quote, give our team at eFinancial a call.

Yes, it’s possible to use final expense insurance as burial insurance for seniors, funeral insurance for parents or to cover funeral costs for others who may need it. You can also name a funeral home as the primary beneficiary and list a loved one as a second beneficiary, who will receive any money that’s left over after the funeral has been paid for. It’s important to confirm with the funeral home that it accepts final expense life insurance for seniors as a form of payment.

Yes, it’s possible as long as you meet certain requirements. It might be scary or uncomfortable, but talking to your parents about final expense insurance can help everyone feel better about what’s to come later. Start by having a conversation with your parents about any critical aging issues and what they want in terms of final arrangements, ideally by the time they’re 70. Ask them questions about what kind of funeral they want, whether they would like to be cremated or buried, and what kind of final expense insurance they might already have in place.

Depending on what they want, it’s important that they have enough insurance to cover the maximum expected funeral costs, as well as any other expenses, including medical bills. If you do decide to purchase final expense insurance for your parents, you will need their consent, their Social Security numbers, and a few other personal details. Learn more about buying final expense insurance for a parent here.

In general, a final expense death benefit is tax-exempt. If the policy owner is a person different from the beneficiary, though, the IRS might consider the death benefit a taxable gift. Our eFinancial agents can help you understand the specifics of your individual plan. You should also consult with your tax advisor for any specific tax concerns.

Pre-need insurance plans – also referred to as pre-need burial insurance or prepaid insurance – are typically offered by funeral homes to pay for your funeral service. They allow you to design your entire funeral service yourself while also handling payment at the same time. The downside of these burial insurance plans is that you can’t use the money you pay in premiums for anything else, and you generally are locked into a specific funeral provider.

Using your savings is certainly an option. Since many people have unexpected medical costs or other unexpected expenses later in life, though, final expense insurance can give you the assurance that your family will have enough to cover these costs.

Relying on your will can be tough for your loved ones, since a will is typically read after the funeral and it can take months after that for the will to be settled fully. The Social Security life insurance benefit is only $255, far less than the average cost of a funeral.

Every few years or after a big life change, it’s a great idea to review your final expense insurance policy. You want to be sure that your personal details, like your address and billing information, are up to date. You also want to be sure that your policy reflects your current family and financial situation. Getting married or divorced, buying a home or changing jobs are all smart times to connect with an eFinancial agent about your coverage and needs.

At eFinancial, our agents are here to help you find high-quality, affordable final expense insurance to meet your needs.

To get started, request a free, no-obligation final expense insurance quote online or call 855-917-3378 to talk with one of our agents.