Final Expense Life Insurance

Death is the only thing constant in everyone’s life. No amount of consoling can ever ease the pain of losing a loved one. Final expense insurance, though, can alleviate the financial burden of the bereaved family members.

A final expense life insurance is the answer to the cost of funeral, burial, and lingering expenses. Unlike funeral/pre-need policies, burial and final expense policies are permanent. They also come with salient features including:

Cash value build-up
Proceeds can be used for any purpose
Policy holder can choose any beneficiary

The proceeds of this life insurance can also be used for any purpose at the discretion of the beneficiary.

Types of Final Expense Insurance Policies

There are five types of final expense insurance policies. Check out which of these policies you qualify for. Listed are also the top life insurance companies that offer these policies.

Guaranteed Acceptance

This life insurance policy does not question the health status of the plan holder. It provides protection to individuals who are in hospice or have already been diagnosed with a terminal illness.

There is a two-year waiting period before the beneficiaries can avail of full death benefit. This means that should the plan holder die of natural causes within the 2-year period, the beneficiaries will receive the total amount of premiums paid plus 10%.

Should death happen after 3 years beneficiaries will receive the full amount of the benefit. If the plan holder has an accidental death happening within years 1 and 2, the full amount of the benefit is also given to the beneficiaries.

Plan Features

Comes with cash build-up value
Proceeds can be spent on anything
Plan holder can choose any beneficiary
Return of premiums paid plus 10% on years 1 and 2.
Total premiums paid plus 10% when suicide is the cause of death
Full face amount of the plan on the first day for accidental death
$1,000 - $40,000 coverage amount

Plan Qualifications

Overall Health – With serious health condition (1 or more)
Medical History- No health questions will be asked

Best Guaranteed Acceptance Policies

	AIG	Gerber Life	Columbia Life	Great Western
Product	Guaranteed Issue	Guaranteed Life	Guaranteed Issue	Guaranteed Assurance
Eligibility	50 – 85 yrs. old	50 – 80 yrs. old	25 – 80 yrs. old	40 – 80 yrs. old
Coverage Amount	$5,000 -$25,000	$5,000 – $25,000	$2,500 – $25,000	$5,000 – $40,000

Funeral/Pre-Need/Prepaid

This pre-need policy is similar to a layaway plan because there is a direct purchase from a funeral home. In short, the funeral parlor is the beneficiary of the plan.

In this plan you can choose to pay for the cost of your preferred burial arrangements in a one-time, 1-year, 5-years, and 10-year payment term. The policy includes the cost of a casket, funeral home services, memorial services, and burial fees. One you have opted for a particular payment term, you can no longer change it.

This spares relatives of the plan holder from needing to plan a last minute funeral because everything is already in place. Besides, the prices are of the time the plan was “bought.”

Plan Features

Funeral home of choice is the beneficiary
Benefits are available as the plan is being paid
Does not have cash build-up value
Proceeds are solely for funeral expenses
$1,000 – $25,000 coverage amount

Plan Qualifications

Overall Health - With serious health conditions within the last year (1 or more)
Medical History- No health questions will be asked

Best Funeral/Pre-need Policies

	Great Western	Lincoln Heritage	Security National	United Heritage
Product	Preneed Funeral Insurance	Funeral Advantage	Preneed Insurance	Preneed Funeral Planning
Eligibility	0 – 89 years	0 – 85 years	50 – 85 years	N/A
Coverage Amount	$5,000 – $25,000	$1,000 – $20,000	$5,000 – $25,000	$1,000 – $20,000

Modified Benefit Policy

This policy is for individuals with a serious illness. The beneficiary gets the full benefit after a two-year waiting period upon the purchase of the policy.

If it is a natural death before the two-year waiting period, the beneficiary will only be paid the total amount of premiums paid plus 10% of the total death benefit. The entire death benefit will be paid to the beneficiary after the 2-year waiting period.

If it is an accidental death, the beneficiary gets the full amount of the benefit even while the 2-year waiting period is in effect.

Plan Features

Has cash build-up value
Proceeds can be spent on anything
Beneficiary of choice
Total premiums paid plus 10% within 1 to 2 years of the policy.
Full benefit of the plan when suicide is cause of death
Full value of the plan on day 1 on accidental deaths
$1,000 – $40,000 coverage amount

Plan Qualification

Overall Health – With serious health conditions within the past twelve months (1 or more)

Medical History – No medical diagnosis or treatment for stroke or respiratory disorder, cancer, leukemia, heart attack, or diabetes before 40 years old; well controlled medical conditions

Best Modified Final Expense Policies

	AIG	Gerber Life	Great Western	Mutual of Omaha
Product	Guaranteed Issue	Guaranteed Life	Guaranteed Assurance	Living Promise Graded Benefit
Eligibility	50 – 85 years	50 – 80 years	40 – 80 years	45 – 80 years
Coverage Amount	$5,000 – $25,000	$5,000 – $25,000	$5,000 – $40,000	$2,000 – $20,000

Graded Benefit

This policy is suitable for individuals with health concerns provided you have not had any major illness within the past 24 months. This plan is also suitable if you have a medically manageable disease.

Insurance companies have varying coverage with regards to this life insurance benefit but this plan generally comes with a two-year waiting period for non-accidental deaths before the beneficiary is paid the full death benefit. After 3 years, the beneficiary gets the full death benefit.

Plan Features

With cash build-up value
Beneficiary of choice
30% of benefits paid on the 1st year, 70% on the 2nd year, and 100% after the 3rd year
If suicide is the cost of death, beneficiary gets the amount equivalent to total premiums paid plus 10%
For accidental deaths, beneficiary gets full amount of the benefit from the 1st day
Proceeds can be spent on anything
$1,000 – $35,000 coverage amount

Plan Qualifications

Overall Health - Must have good medical condition without any serious illness within the past 24 months.

Medical History - No medical history of HIV, Aids, ALS, Alzheimer’s disease, or current hospitalization; without medical diagnosis or treatment for MS Parkinson’s disease diabetes, respiratory disorder, internal cancer, heart attack, leukemia, lupus cerebral palsy, COPD, Crohn’s disease before 40 years old; well-controlled medical conditions.

Best Graded Final Expense Policies

	Aetna	Prosperity	Royal Neighbors	Sentinel Security
Product	Graded Benefit Plan	New Vista Graded	Graded Death Benefit (GBD)	New Vantage II
Eligibility	45 – 80 years	50 – 80 years	50 – 78 years	45 – 85 years
Coverage Amount	$3,000 – $35,000	$1,500 – $35,000	$5,000 – $10,000	$1,000 – $20,000

Level/immediate Benefit

This is the basic and most simple final expense policy. It is actually the best policy for healthy individuals. To qualify for this policy, the individual needs to be in good health or with minor health conditions that are being treated and well-controlled.

The beneficiary gets the full amount of the coverage right away should the plan holder die even on the day the application was approved.

Plan Features

With cash build-up value
Full coverage starts on the first day after approval of policy
Proceeds can be spent on anything
Beneficiary of choice
Final expense plan with the best price
$2,500 – $100,000 coverage

Plan Qualifications

Overall Health - Good health condition

Medical History - Without medical diagnosis or treatment for internal cancer, heart attack, respiratory disorder, leukemia, diabetes or stroke (before 40 years old), Crohn's disease, MS, and COPD, cerebral palsy; well-controlled medical conditions.

No medical history for Alzheimer’s disease, HIV, AIDs, cardiomyopathy, heart failure, Parkinson’s disease, paralysis, amputation, or dependency on a wheelchair, or current hospital confinement.

Best Level / Immediate Policies

Insurance Company	Product	Eligibility	Coverage Amount
Aetna	Level Benefit Plan	45 – 89 years	$3,000 – $35,000
Americo	Eagle Premier Level	50 – 85 years	$2,000 – $30,000
Liberty Bankers Life	SIMPL Final Expense	40 – 80 years	$3,000 – $30,000
Mutual of Osama	Living Promise Level Benefit Plan	45 – 85 years	$2,000 – $40,000
Nassau Re	Remembrance Life	30 – 80 years	$10,000 – $100,000
Prosperity	New Vista Level	50 – 80 years	$1,500 – $35,000
Royal Neighbors	Simplified Issue Whole Life	50 – 85 years	$5,000 – $25,000
Sentinel Security	New Vantage I	0 – 75 years	$1,000 – $35,000
United Home Life	Express Issue Deluxe Simplified Issue Whole Life	20 – 80 years	$5,000 – $50,000

Best Final Expense Life Insurance

Type of Final Expense Policy	Health	Payment of Coverage	Coverage Amount	Price
Guaranteed Acceptance	Bad / Below Average	1st – 2nd Year – 110% of paid premiums 3rd Year and Over – full coverage amount Suicide- Refund of premiums Accidental Death – full coverage amount	$2,500 – $40,000	OK
Funeral/Pre-Need/Prepaid	Bad / Below Average	Amount paid-in	$1,000 – $25,000	OK
Modified Benefit	Below average	1st – 2nd Year – 110% of paid premiums 3rd Year and Over – full coverage amount Suicide- Refund of premiums paid Accidental Death – full coverage amount	$2,500 – $100,000	OK
Graded Benefit		1st Year - 30% of coverage amount 2nd Year – 70% of coverage amount 3rd Year full coverage amount Suicide- Refund of Premiums paid Accidental Death – full coverage amount	$2,500 – $50,000	Good
Level/Immediate Benefit	Good	Full coverage from 1st day	$2,500 –$100,000	Best

Comparison Chart of Final Expense Life Insurance Companies

Company	ELIGIBLE AGES / COVERAGE AMOUNTS	Best Plans	Brochure	Notes from Aha
Aetna	45 – 89 years $3,000 – $35,000	Graded Benefit Plan Level Benefit Plan	Final Expense Whole Life Brochure	15-minute phone application Lenient health questions Great price Top quality customer service
AIG	50 – 85 years $5,000 – $25,000	Guaranteed Acceptance	GIWL Brochure	15-minute online application with digital signature Does not have health-related questions Modified Benefit plan with the best price
Americo	50 – 85 years $2,000 – $30,000	Level Benefit Plan	Eagle Premier Brochure	Solid company with good customer support Lenient underwriting for individuals whose health requirements qualify for 1st day coverage
Columbia Life	25 – 80 years $2,500 – $25,000	Guaranteed Acceptance	Guaranteed Issue Whole Life Brochure	Only guaranteed acceptance policy that covers individuals starting at 25 years old (coverage for most policies with no medical questions starts at 50 years old
Gerber	50 – 80 years $5,000 – $25,000	Guaranteed Acceptance	Gerber Guaranteed Life Brochure	15-minute phone application Great pricing Often cheaper than modified plans with questions on health conditions 7% discount for monthly payment through ACH bank transfer
Great Western	0 – 89 years $5,000 – $40,000	Funeral/Pre-need Guaranteed Acceptance	Guaranteed Assurance Brochure	Offers highest guaranteed acceptance coverage at $ 40,000 Coverage amount raised to $48,000 and 1st day coverage if appropriately answer 3 medical questions
Liberty Bankers Life	40 – 80 years $3,000 – $30,000	Level Benefit Plan	SIMPL Final Expense Brochure	30-minute phone application Voice signature makes policy immediately active Best-priced depending on health condition
Lincoln Heritage	0 – 89 years $1,000 – $20,000	Funeral/Pre-need	Funeral Advantage Brochure	20-minute paper application Expensive policies Financially strong company
Mutual of Omaha	45 – 85 years $2,000 – $40,000	Modified Benefit Plan Level Benefit Plan	Living Promise Brochure	15-minute phone application Possible phone interview by company representative Great customer support Popular Final Expense Policy company
Nassau Re	30 – 80 years $10,000 – $80,000	Level Benefit Plan	Remembrance Life Brochure	With living benefits With access to death benefit is the case of disability or serious illness Riders included in policy without extra cost
Prosperity	50 – 80 years $1,500 – $35,000	Graded Benefit Plan Level Benefit Plan	New Vista Brochure	15-minute phone application Great pricing Credit card payments accepted
Royal Neighbors	30 – 80 years $10,000 – $100,000	Level Benefit Plan	Final Expense Brochure	15-minute phone application 15-minute call from company representative Lenient with health conditions Comes with membership benefits
Security National Life	50 – 80 years $5,000 – $25,000	Funeral/Pre-need	Preneed Insurance	Often sold by funeral homes directly to customers A leader in pre-need insurance policies Excellent customer service
Sentinel Security	0 – 75 years $1,000 – $35,000	Graded Benefit Plan Level Benefit Plan	New Vantage Brochure	20-minute phone application with instant approval One of the best final expense plans Great price
United Home Life	20 – 80 years $5,000 – $50,000	Level Benefit Plan	Simplified Issue Whole Life Brochure	Lenient in approving applications Suitable for individuals with difficulty qualifying for 1st day-coverage Several level Benefit Plans available
United Heritage	0 – 80 years $1,000 – $20,000	Funeral/Pre-need	Preneed Funeral Planning Brochure	Sold by funeral homes and agents Financially strong company Expensive policies

How to Determine the Final Expense Plan You are Qualified

Health Conditions # 1: Qualifies for Guaranteed Acceptance Policy

Require bone marrow, organ transplant, stem cell, kidney
Are with dementia, Alzheimer’s disease, mental incapacity, (AIDS), AIDS-related complex, Lou Gehrig’s disease
Are diagnosed with a life expectancy of 12 months or less
Are currently in nursing facility, hospital
Are currently receiving hospice care, bedridden, confined to a wheelchair
Your breathing is assisted by oxygen equipment

Health Condition # 2: Qualifies for Modified Benefit Policy

If you have been diagnosed or treated by a medical doctor or had surgery within the past 12 months for any of these illnesses:

Heart attack
heart blockage
stroke
heart valve disorder
transient ischemic attack
internal cancer
lymphoma
melanoma
multiple myeloma
leukemia
systemic lupus
chronic hepatitis
chronic pancreatitis
cirrhosis
lung or respiratory disorder requiring the use of a nebulizer
Diagnosed with diabetes before 40 years old
Undergoing counseling and treatment for drug or alcohol abuse
Advised by a medical doctor to have diagnostic testing which you still have not completed or have yet to receive the results.

Health Condition # 3: Qualifies for: Graded Benefit Policy

If you have been diagnosed or treated by a medical doctor or had surgery within the past 24 months for any of these illnesses:

Heart attack
Aneurysm
stroke or transient ischemic attack
any circulatory disorder
chronic obstructive pulmonary disease
emphysema
leukemia
melanoma
ulcerative colitis
Crohn’s disease
any connective tissue disorder
Neuromuscular disorder, including, but not limited to multiple sclerosis, muscular dystrophy or cerebral palsy

Health Conditions # 4: Qualifies for: Level/Immediate benefit policy

You have been diagnosed or treated by a medical doctor at any time, or had surgery for any of these at any time:

Parkinson’s disease
Cardiomyopathy
heart failure
any disease-related amputation
permanent paralysis
dependent on motorized mobility device or wheelchair

The health conditions above are general health conditions that you will be asked of you. Life insurance companies ask different health-related questions thus it is important that your situation is properly evaluated so you get the best final expense life insurance plan.

Please note that there are no policy plans available for individuals 80 years old and older.

How to Apply for a Final Expense Life Insurance Policy

Fill up the form to get a free instant quote on an Instant Final Expense Insurance Policy
Answer the 2-page health questionnaire. Your profile will help companies interested in offering coverage provide you with accurate rates.
Review the plans and rates from different life insurance companies.
Choose your preferred life insurance company. An agent will be happy to assist you for any concerns and questions.
Submit an application request.
Expect a call from an Aha Life Insurance agent during regular business hours. This is to make sure that you are getting the best plan for your particular situation.
When everything is order, verify and sign your application.
When you are approved, the insurance company will offer you a life insurance policy contract. You have 30 days to accept the offer.
Sign the contract and make your first premium payment. Just in case you change your mind, you have 30 days to get a refund of your initial payment.
You now have life insurance coverage!

Aha Life Insurance reviews the underwriting guidelines, benefits, and pricing of every life insurance company to find the best option for your particular situation. The company also takes care of all the paperwork and deals with all correspondence with the life insurance company.

Please note that life insurance policies are unilateral contracts. As long as you make your premium payments, you are protected by the terms and conditions stipulated in the contract. The life insurance company cannot change any of the provisions in the contract.

Final Expense / Burial FAQs

Why do I need burial insurance?

If you are 50 years and older, you will need a life insurance policy, even just a small policy, to take off the load of shouldering the cost funeral arrangements from your surviving family. Your beneficiaries however can use the proceeds of your policy in any way they see fit.

Why do I need funeral insurance?

Funeral costs are soaring at a fast rate. If you have final expense insurance, it can help cover the expenses during end of life. It can also help with the medical bills. Although intended for end of life expenses, beneficiaries can use the proceeds in any way they choose.

Will I benefit from a final expense life insurance?

Depending on your current age and health condition, a final expense life insurance will provide additional coverage when you die. When you do not have a term life insurance with larger death benefits because it is too expense, a final expense life insurance is your next best option because it is less expense.

It can also mean that at the time you decided to get a life insurance, you could only qualify and afford a final expense life insurance. Additionally, if you are not qualified for a policy with better or more benefits because of your current age and disqualifying health circumstances, a final expense life insurance policy could come to the rescue.

A final expense life insurance will ensure that when you die, your surviving family will be able to deal with their loss, stress-free.

Which companies have the best final expense life insurance rates?

Final expense life insurance rates are based on the underwriting criteria of the insurance company. The rates can change yearly or even monthly. Aha, an independent agency, can help you figure out which final expense policy and life insurance Company that is the perfect fit for your current needs.

There are many companies that advertise and promote burial insurance and final expense plans to senior citizens. Some of the top brands have TV commercials for a wider reach. Their life insurance products though can be more expensive than other options.

To ensure you are getting the best policy for your current situation, it is best to work with an independent agency representing various insurance companies. An experience agency or agent can ensure you are only getting the best.

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Final Expense Life Insurance

February 3, 2020 - Reading time: 191 minutes

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