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Final Expense Insurance: The Top 10 Companies

Written by Rob Pinner

What is the difference between Final Expense & Burial Insurance?

The short answer is there is very little difference between the two, except what the death benefit proceeds are used for.

Final Expense Insurance or Burial Insurance is a whole life policy, or also known as permanent life insurance. These policies are marketed to seniors between the ages of 50-85 years of age.

They are designed for consumers who do not need a lot of insurance coverage, usually enough for burial costs or any other remaining debts. Death benefits usually range from $2,500 to $50,000 depending on the company and product used.

Even though these policies seem similar enough, most experts agree the one main difference is how the death benefit is intended to be used. Lets see how:

Final Expense Insurance

This type of insurance is often bought for the intentions of having cash to pay off any remaining liabilities, such as funeral costs, medical bills, remaining mortgage, or any financial debt left.

Burial Insurance

Consumers purchase burial insurance with the intentions that the death benefit be used to pay for funeral expenses. Funeral homes sale these types of policies, which allow you to pre-pay for your funeral expenses. You can also assign the burial insurance to the funeral home. This allows the death benefit to be paid directly to the funeral home to ensure your burial costs are paid for.

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Pros of Final Expense & Burial Insurance

  • Permanent Life Insurance
  • Cash Value
  • Guaranteed Fixed Premiums
  • Designed for Seniors
  • Simplified Issue
  • No Medical Exams
  • Approvals are Usually Quick
  • Rates are affordable

Types of Final Expense Insurance

Even thought their isn’t much difference in final expense and burial insurance, there are differences in the types of coverage offered.

The three types of final expense insurance are:

Level Death Benefit

This type of final expense insurance is the best policy, but also has the most medical questions. If you qualify, the death benefit is paid in full from day 1 of the policy. The premiums are guaranteed for the life of the policy, while building up cash value.

These final expense policies can be a little harder to qualify for if you have had certain health problems or you don’t meet their height/weight guidelines.

Here are some sample questions for level death benefit final expense. If you answer yes to any of these, then you will want to look at the other types of final expense insurance.

  • Are you in the hospital or bedridden?
  • Are you in hospice, home healthcare, or a nursing home?
  • Do you have any pending surgery or organ transplant
  • If you have been diagnosed with any of the following:
    • Dementia
    • Alzheimer’s
    • Down Syndrome
    • Lou Gehrig’s Disease (ALS)
    • Sickle Cell Anemia
    • Cystic Fibrosis
    • Cerebral Palsy
    • AIDS, ARC or HIV
  • Have you ever been in a diabetic coma?
  • Do you have less than a year to live?

*These are only a sample of the medical questions asked

Graded Death Benefit

A graded death benefit policy is a whole life policy that has a waiting period before full benefit is paid. A graded death benefit policy usually pays a modified amount of the benefit the first 2 years of the contract for death caused by illness. After 2 years the full death benefit is paid by most carriers.

If death occurs by accident the first 2 years, the full death benefit is paid out.

In order to qualify for one of these policies you will have to answer a few medical questions. These policies are designed to cover many more health risks than the level death benefit policies, but is not guaranteed issue/acceptance.

Guaranteed Issue/Acceptance

This is life insurance that you cannot be declined for any reason. It is a guaranteed issue whole life policy that is designed for consumers who have no other options when it comes to purchasing life insurance.

Their is a 2 year waiting period for all death cause by illness, but does pay full death benefit if you die from an accident. Your beneficiary does receive premium plus interest if you pass away during the 2 year waiting period.

The premiums are guaranteed but tend to be higher simply because of the risk the insurance carrier is taking, but these policies due build cash value over time.

The 10 Best Final Expense and Burial Insurance Companies for 2019

With all the life insurance companies to choose, it can a difficult process to choose the best company that fits your personal situation.

We have all seen the commercials on television offering insurance for as low as $1, like Colonial Penn or Globe Life, or have received offers from AARP  through the mail. With this much information being marketed, it’s easy to get confused.

The good news is we are here to help. We have combined a list of who we believe are the top 10 final expense insurance companies for 2019. Here it is:

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Top 5 Reasons to Purchase Final Expense Insurance

These types of policies might be the life insurance coverage you are looking for. Here of the 5 reasons to why you should consider purchasing a final expense policy:

Lifetime Protection-

Final Expense Insurance is a permanent whole life policy with a guaranteed premium and death benefit. They also build up cash value that can be borrowed if a need arises.

Burial Expenses & Debt-

If you plan properly, a final expense policy could be used to pay for burial expenses or debts that remain after you pass away. Having debt pass on to your loved ones can be a financial burden during a time of mourning.

No Medical Exam Required

The convenience of not having to do a medical exam to qualify for final expense insurance is the feature like by most consumers. No needles, no urine samples or having to answer awkward questions to a stranger.

Qualifying is Easier-

Final Expense Insurance offers 3 types of coverage that provide a solution for all consumers when it comes to life insurance coverage. Whether it’s level, graded, or guaranteed issue coverage, their is no health condition that won’t qualify for one of these options.

Fast Approval-

Since no exam is required and the applications are simplified issue or guaranteed issue, approval is fast. Most approvals happen within a week while it can be as fast as 24 hrs. depending on the carrier and the type of coverage chosen.

How do I get the Best Final Expense Insurance Policy?

That’s an easy answer! We are here to help. The key to finding the best policy is to work with an independent agency like ourselves. We represent the top carriers of final expense insurance and our knowledgeable on which company would be best for your situation.

If you have any questions or would like to explore final expense insurance in more detail, please give us a call or comment below. Thank you for your time and we hope you find this article helpful.

Rob Pinner
Rob Pinner

My name is Rob Pinner and I own EasyQuotes4You. At EasyQuotes4You we aim to make your life insurance buying process a smooth and stress free transaction.  We are independent life insurance agents servicing all 50 states. I have over 15 years of experience and have focused solely on life insurance for the past 5 years. If you have any questions or comments please don’t hesitate to give us a call.

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