Before we get to the list, what is burial insurance and final expense insurance?
Burial insurance or final expense insurance is a type of life insurance coverage that falls under the category of whole life insurance, otherwise known as permanent insurance. These types of policies are often purchased by senior citizens between the ages of 50-85 years old that do not require a large amount of life insurance coverage, generally ranging from $2,000 to $50,000. The main purpose of the life insurance coverage is to help provide your family with the available funds to pay for either funeral costs, final debts or both.
Is there a difference between burial insurance and final expense insurance?
The quick and simple answer is no.
There really is no difference other than the actual name. You may have seen life insurance coverage being offered by the names of burial insurance, final expense insurance and even pre-need funeral insurance. All of these names are commonly used terms to describe what are really whole life insurance polices for seniors.
Although burial and final expense insurance are the same type of life insurance coverage one could argue that there is a difference in how the death benefit is intended to be used and we couldn’t agree more.
Burial Insurance is purchased with the main intentions of having the needed funds to help pay for a burial and funeral expenses. Some funeral homes will even allow you to pre-pay for funeral expenses by assigning your life insurance policy to them. This allows for the death benefit funds to go directly to the funeral home to pay for the planed funeral and costs.
|How much does the average funeral cost?|
|The average funeral cost in 2017 can range from $6,000 to $10,000||Source|
|Funeral Home Costs|
|Funeral Directors Fee||$1,500|
|Embalming & Preparation||$600|
|Ceremony & Viewing||$1,000|
|Miscellaneous (Hearse, Death Certificates, Obituary, etc.)||$600|
|Headstone or Gravemarker Costs|
Final Expense Insurance is often purchased with the purpose of having funds available to pay off any remaining debts or final expenses. Final expenses may include medical bills; long term cares costs, credit card balances, loans, remaining mortgage balance and other financial debts.
Burial Insurance and Final Expense Life Insurance Policies
- Whole life insurance
- Guaranteed cash values
- Fixed premium payments
- Designed for senior citizens
- Death benefits range from $2,000 – $100,000
- Simplified issue meaning no exam required
- Easy application process
- Often approved quickly
- Relatively affordable rates
Top 5 Reasons to Consider a Final Expense Life Insurance Policy
Final expense insurance might just be the life insurance coverage you are looking for. Here are 5 of the top reasons to consider a final expense insurance policy.
Permanent Protection – Final expense life insurance is permanent coverage. Its whole life insurance design provides a lifetime death benefit protection. A bonus feature is the guaranteed cash values the policy will earn over time.
Funeral or Final Expense Debts – With the proper planning and enough life insurance coverage, a final expense life insurance policy can provide the funds needed for your family and loved ones to pay for your funeral and burial costs. In addition to funeral and burial costs, having the right amount of coverage can also help assist in the payoff of any extra final expense debts.
Easier to Qualify for a Policy – Level, graded and guaranteed issue coverage options provide a solution for just about everyone requiring life insurance coverage. Health conditions that may be considered high risk, or even a decline, with traditional underwriting may be approved with guaranteed issue policies.
No Exam Required to Apply – One of the many great features of final expense insurance is that it doesn’t require a medical exam to apply. That means, no appointment with an examiner, no needles and no urinalysis or blood pressure readings.
Quick Approval Times – Since final expense insurance does not require an exam, the application process consist of answering medical questions to determine what type of coverage you will qualify for. By eliminating the exam portion of the application process, approval times are made much faster allowing for you to quickly get a life insurance policy.
There are 3 Different Types of Final Expense Life Insurance
As we mentioned earlier, other than the name, there are no differences between a burial insurance policy and final expense insurance policy. However, there are differences in the types of coverage that you may qualify for.
Final expense insurance can come in three different types coverage options known as level, modified and graded death benefit. What makes the coverage different from each other is how the death benefit will be paid out at the time of death. The type of coverage you will qualify for will depend on the insurance company and your answers to medical questions on the application.
Level Death Benefit
Level death benefit is the best final expense insurance coverage. If you qualify for level death benefit coverage, 100% of the death benefit is guaranteed to pay out at death starting from day one. In order to qualify for this coverage option, you will need to be within height and weight guidelines and cannot have any major heath conditions. The maximum amount of coverage that can be applied for is generally capped at $50,000 with a few companies offering up to $100,000.
Sample Pre-Qualifying Questions for Level Death Benefit Approval
(Answering yes may result in a decline for level death benefit coverage)
- Currently hospitalized or bedridden
- Receiving hospice, nursing home care or home healthcare
- Upcoming inpatient surgery or have received an organ transplant
- Diagnoses or been treated for Alzheimer’s, Dementia, Memory Loss, Organic Brain Disease, Mental Incapacity, Downs Syndrome, Lou Gehrig’s Disease (ALS), Sickle Cell Anemia, Huntington’s Disease, Cerebral Palsy, Cystic Fibrosis
- Diagnosed with AIDS, ARC or tested positive for HIV
- Have been in a diabetic coma
- Advised or have had an amputation due to disease or disorder
- Have been diagnosed by a medical professional with less than 1 year to live
*These are only a few of sample questions that often appear on most applications for level death benefit coverage.
Modified or Graded Death Benefit
Have you ever heard of life insurance with a waiting period? Well this is it.
Modified or graded death benefit is a second type of final expense insurance that has a waiting period before full death benefit will be paid. Depending on the life insurance company, a graded death benefit policy will only pay 100% of the death benefit after policy year 2.
If death occurs prior to policy year 2, the death benefit generally consists of a full return of the premium plus interest of usually 10%.
NOTE: Most graded death benefit policies will pay out the full death benefit if death occurs from an accident.
Qualifying for graded death benefit coverage is determined based on the answers to the medical questions on the application. Although the coverage is not guaranteed acceptance, it is designed to cover many high-risk health conditions that would often be a decline with traditional underwriting. The maximum amount of life insurance coverage that can be applied for is often capped at $25,000 with a few companies offering up to $50,000.
Life insurance you cannot be turned down for.
The third type of final expense insurance is guaranteed acceptance. Nearly identical to graded death benefit coverage, guaranteed acceptance approves all health conditions. This coverage has a 2-year wait on full payout the death benefit and the price for the insurance coverage is the most expensive.
Just like graded death benefit coverage, guaranteed acceptance if death occurs prior to policy year two only a refund of premiums will be paid along with an interest rate of typically 10%. All accidental deaths will payout 100% of the death benefit regardless of the policy year.
2017 Top 10 Best Final Expense and Burial Whole Life Insurance Companies
When choosing the best burial insurance or final expense insurance policy, doing it on your own can be a difficult process. You probably have seen the television commercials or even received direct mail, advertising best burial insurance for seniors or final expense life insurance, as low as $1 per month. How do you know which burial insurance companies or final expense companies are the best when there are some many offering coverage?
In order to help aid you in your search we at Top Quote Life Insurance have put together a list of the top life insurance companies we feel that are currently offering the best in burial insurance and final expense whole life insurance policies.
|Companies||Issue Ages||Death Benefit Type||Coverage Amounts|
|Level & Graded||$2,000 - $30,000|
|Level, Modified & Graded||$2,000 - $50,000|
|American Continental||Ages |
|Level, Modified & Graded||$3,000 - $35,000|
|Level, Modified & Graded||$5,000 - $50,000|
|Baltimore Life||Ages |
|Level & Graded||$2,500 - $25,000|
|Level, Modified & Graded||$2,000 - $35,000|
|Guaranteed Acceptance||$5,000 - $25,000|
|Mutual of Omaha||Ages |
|Level, Modified & Graded||$2,000 - $40,000|
|Transamerica||Up to age |
|Level||$1,000 - $50,000|
|United Home Life||Up to age |
|Level, Graded & Guaranteed Approval||$5,000 - $100,000|
How to get the Best Final Expense Insurance Quotes
Need help finding the best final expense company or quote? We are here to help. The key to finding great final expense insurance is working with an agency that can shop your coverage with multiple final expense insurance companies. Top Quote Life Insurance can help in your search for life insurance.
If you think final expense insurance is something you would like to explore further or if you need help finding out which type of final expense death benefit you may qualify for based on your health and lifestyle, please reach out to us for help.
Thank you for visiting us at Top Quote Life Insurance and reading our article on the, Top 10 Best Burial Insurance and Final Expense Insurance Companies. Please be sure to call or send a message with any question.