Insurance Companies Offering Final Expense Insurance

Caucasian mother and daughter talking on sofa. Getty Images/Ariel Skelley

Death is an unpleasant subject so it is natural to put off thinking about how much a funeral or other final expenses can cost a family when faced with an unexpected death. The simple fact is…burials are very expensive and can cost $10,000 or more. And it is not just the burial you have to think about. There may also be estate fees and bills from creditors that have to be taken care of. During a time of grief, it is often difficult to remember all the financial details.

Final expense insurance may be an option to consider.

Final expense insurance is another name for burial insurance. It is an insurance policy that you can purchase to help pay for the expenses of your funeral, burial and other death-related expenses. Sometimes, your life insurance policy provides enough final expense coverage that you would not need to buy an additional final expense policy. It pays to check out what coverage you have now, before your loved ones are faced with unexpected expense after you are gone. While no one likes to think about death, purchasing a final expense insurance policy or a life insurance policy covering final expenses could prevent your loved ones from being left in financial ruin after your death.

The Final Expense Insurance Policy

There is no medical exam required for final expense insurance, although you may have to answer a few health-related questions in a questionnaire before buying a policy.

The policy is designed to pay for your final expenses upon your death including burial, cremation and the funeral service. You can also use the funds to help cover other end-of-life expenses such as unpaid medical bills or estate expenses.

Since there is very little underwriting done in final expense insurance, almost anyone can qualify to purchase a policy.

There are a few exceptions: applicants who have cancer, use drugs or who have had extended hospital stays in the last year may not qualify for a burial insurance policy. Final expense insurance is often sought by people who are older or in poor health. Because of this, the premiums for final expense insurance can be quite high, sometimes considerably more than a term-life insurance policy.

You can buy a final expense insurance policy from insurance companies who offer this coverage or through an insurance company who specializes in final expense insurance.

Insurance Companies Offering Final Expense/Life Insurance

If you think a final expense insurance policy or a life insurance policy that covers final expenses may be able to put your mind at ease about end-of-life expenses for you or a loved one, there are a number of insurance carriers who offer this coverage including:

Progressive: Progressive offers a final expense policy called “Progressive Advantage.” It is underwritten through Efinancial. Premiums begin as low as $10 per month with coverage options available for $2,500-$35,000. The Progressive policy is offered to applicants age 50-85 and has no pre-existing health exclusions.

Coverage can begin in as little as 24 hours and there is no medical exam required.

Transamerica: Final expense life insurance through Transamerica is available in three different policies: immediate solution, 10 pay solution or easy solution. These policies offer no waiting period, no increase in premiums due to age and guaranteed renewal as long as premiums are paid on time.

Americo: Whole life insurance products through Americo range from values of $2,000 to $30,000. These policies have premiums that are balanced and cannot be cancelled due to age or health condition. Non-smoker rates are available.

Foresters Life Insurance Company: The PlanRight whole life insurance policy available through Foresters if a fixed-premium policy offering lifetime coverage and also come with an option to add an accidental death rider for an additional premium.

The accidental death rider will provide an additional death benefit if you die of accident injuries while a paid passenger on common carriers such as a train or bus.

Combined Insurance Company: The Life Protector policy available through Combined Insurance Company will pay $50,000 to your beneficiaries upon your death or if you add the optional accidental death benefit, your beneficiary can receive up to $100,000.

MetLife: The MetLife whole life policy offered guaranteed acceptance for policyholders age 50-75, meaning you can’t be turned down for health reasons. Rates begin as low as $9.70 per month and there are no medical exams required to begin coverage.

American National: A whole life insurance policy through American National offers fixed premium, an accumulating cash value which you can borrow against and a fixed benefit amount for guaranteed benefits to your loved ones after you are gone.

Assurity: Whole life insurance form Assurity is lifetimes coverage with n income tax-free benefit. Assurity also provides accidental death coverage if death is caused by something other than illness or natural causes. The accidental death benefit is available at an additional premium.

Mutual of Omaha: Mutual of Omaha’s whole life insurance policy provides benefits which can be used for final expenses. The policy can build tax-deferred cash values. Whole life policies are available to policyholders age 18-85. There are three different whole life policies provided through Mutual of Omaha: Whole Life Guaranteed Direct, Whole Life Guaranteed and Whole Life Express. The premiums are guaranteed to never increase and the whole life guaranteed direct policy provides guaranteed acceptance for ages 45085. Benefits are available from $3,000 to $50,000.

Sagicor: Whole life insurance policies through Sagicor build cash value on a tax-deferred basis. Coverage is guaranteed provided insurance premiums are paid. You can borrow against the cash value of your loan. Premium rates are guaranteed and will not increase as you age.

United Home Life: Final expense whole life insurance from United Home Life has a guaranteed death benefit that will never decrease and premiums that are guaranteed never to increase. The cash value of the policy will grow over time as long as premiums are paid. Three different plans are available to cover you no matter your medical situation including people with severe health issues or those who are even considered uninsurable by other carriers. No medical exams are required.

State Farm: State Farm whole life insurance provides level insurance premiums for policyholders up to age 100. The policy accumulates a tax-deferred cash benefit and death benefits may be income-tax free. Some policies are eligible to earn dividends.

Fidelity Life: Fidelity Life offers a final expense policy for individuals ages 50-85 for values of $5,000 to $35,000. No medical examination is necessary although a health questionnaire is required. Premiums are guaranteed not to increase for the life of the policy.

Sentinel Life: Sentinel Life offers final expense insurance policies with a number of plans ranging from coverage amounts of $1,000 to $35,000. The whole life insurance policy offers several riders that can provide coverage for children, accidental death benefits or a waiver of premium rider that pays your policy premium if you become permanently disabled.

Humana: The Humana Memorial Fund provides funds for final expenses and is available in coverage amounts ranging form $1,000 to $25,000. You have the option of paying for the coverage over life or the 10-year pay plan. A health questionnaire is required and for those who do not qualify based on health history, a “graded benefit” plan may be available. A graded benefit policy pays out 25% in the first year of the policy, 50% in the second year, 75% in the third year and will pay 100% if not needed until the fourth year of the policy or beyond.

Alternatives and Considerations

If you have adequate coverage through a life insurance policy, an additional final expense insurance policy may not be needed. Accidental death and dismemberment insurance (AD&D) is also an alternative to consider. With accidental death and dismemberment insurance, your beneficiaries are paid in the event you suffer death through some type of accident. Most of these policies will also pay for some final expense costs.

Another alternative to final expense insurance is a pre-paid funeral plan. This is a plan that may be purchased from a funeral home. You can plan your arrangements and pre-pay for the service before your death. In doing this, you are preventing your loved ones from having to make and pay for your final arrangements.

Only you can make the final determination of whether a final expense insurance policy, a whole life insurance policy or some other funeral plan is the right option for you and your family.  If you do decide to buy a policy, before making a final decision be sure to check out the insurance company’s customer service record through consumer organizations such as J.D. Power & Associates and its financial strength rating through insurance rating organizations such as A.M. Best.