How Does Final Expense Insurance Protect My Legacy?

  • Dedicated money to pay for burial or cremation costs
  • Fast, simple coverage with no medical exams
  • Low cost fixed payments – monthly, quarterly, or annual premiums
  • Tax-free benefit paid to your designated beneficiary
  • No waiting periods if you qualify – this is where we can help!

What is Final Expense Insurance?

Final expense insurance is a type of coverage that provides a guaranteed death benefit between $2,000 – $50,000. This amount is never reduced as long as your level monthly, quarterly, or annual premiums are paid as required by the policy contract and you never borrow money against the policy. The death benefit can be used by your beneficiary to pay for your funeral costs and any other end of life expenses including cemetery plots, headstones, unpaid debts, or medical and legal bills.

Whether you are interested in a traditional burial, cremation with a memorial or a direct cremation, you’ll find that the costs for these products and services continue to increase over time. However, your final expense insurance premiums stay the same every month. A nationwide review conducted by the National Funeral Directors Association has shown the prices associated with a traditional funeral continue to increase. From 2014-2019 theses expenses have risen over 9 percent.

Expert tip – Be aware that pre-need burial insurance or funeral insurance coverage provided by a funeral home may not include inflation protection and will NOT provide money for other end-of-life expenses.

Know the Facts

  • Premiums will never increase
  • Benefits will never go down
  • You choose your beneficiary
  • Not tied to any place or provider, you make your final wishes
  • Money to pay other expenses, not limited to just your funeral costs

Regardless of whether you live at home, in assisted living, or a senior care facility, there will likely be additional bills due after you’ve passed. Buying an affordable policy to protect your legacy is the responsible, sensible choice for parents and seniors who want a death benefit and no medical exams.

Since many policies are simplified issue and each company has different requirements to qualify, you’ll want to ensure you work with a reputable company like Prime Mutual in locating the best burial and cremation coverage for your needs.

What’s the Biggest Difference between a Pre-Need Burial Insurance and Final Expense Insurance?

Researching these different types of options is often confusing. We get it. Discussing end of life plans and funeral planning are sensitive issues. But by taking the first steps to ensure you protect your legacy, you will rest assured knowing you are taking care of your loved ones first.

Final expense life insurance protects your legacy with financial means at a time when your loved ones need it most. Prime Mutual provides the ability to shop the marketplace with unlimited advice and no conflicts of interest. We have no stake in which company or coverage you choose, so long as you find the right coverage at the right price for you.

Why Do I need Final Expense Insurance?

Many seniors often have multiple reasons for choosing to buy with Prime Mutual. The biggest advantage is that we can more often save our clients money as compared with other companies. While our nation is currently experiencing a pandemic, it’s true that you may be experiencing additional stress at this unprecedented time in history.

It may be the extra time and energy you have or perhaps you were looking for peace of mind in exploring your options to pay for end of life expenses if something bad were to happen. While you think about your loved ones and who will be financially responsible should something unfortunate happen, consider the following thoughts:

  • Ease the burden for your loved ones experiencing loss. Buying a certain level of coverage will at a minimum ensure your friends and family can memorialize you how you want to be remembered. Not having to worry about how to pay for a funeral will remove a heavy burden.
  • Ease the burden on yourself. While no one enjoys talking about, discussing or looking forward to death; taking care of the financials before your own death can provide you with the time to deal with what best suits your individual needs in the here and now.
  • Resting assured your funeral will be a remembrance of you. Buying a small amount of protection enables you to provide financially for your loves ones to memorialize you. You won’t have to worry and wonder about your final wishes and whether they were appropriate or up to your standards.
  • Provide immediate access to funeral and final expense funds. No probate, reimbursement or funds being held up by a funeral director. Access to funds are available immediately so there are zero out of pocket costs and the death benefit is tax-free if setup correctly.

Estimating How Much Coverage You Need?

The average funeral costs between $7,000 and $10,000 these days. The benefit amount paid out from Social Security at time of death is only $255.  Even if you choose cheaper options such as a cremation the costs can run as high as $3,500 with all the related costs and a memorial not to mention flowers, an urn and any other miscellaneous costs. As you can see there is a huge discrepancy in the amount needed for a funeral versus what you might have thought.

Funeral planning with burial insurance requires a careful consideration of all your final needs. Consider how you want to be remembered, where your final resting place should be, whether you wish to be buried or cremated and what type of casket or urn you prefer. Talk with a licensed, reliable funeral director in your community about the cost of the services you require and whether their pre-need burial insurance offer inflation protection so you can accurately compare costs to a one of our providers plan.

The biggest thing consumers should be aware of with regards to pre-need burial insurance offered by a funeral homes is that funeral director is required to provide a price list of the products and services they provide which are often marked up considerably. This is law of the land is known by the as “The Funeral Rule

While pre-need burial insurance has many drawbacks, the value of purchasing a senior life insurance policy to cover your final expenses will cover additional expenses not covered by a the funeral home such as unpaid medical bills, attorney fees or even funds you may want to leave to your grandchildren education.

The most basic, economical option for a funeral include direct burial and direct cremation. Unlike a traditional funeral, a direct option usually involves a burial or cremation immediately proceeding death with no viewing, memorial or visitation and may include a simple casket such as a wooden box. The expenses associated with a viewing and visitation are generally not included in most direct burial options so if that’s not how you want to be remembered, consider a more traditional funeral or a low priced cremation with memorial service.

It’s well known that a traditional full-service burial, including a viewing, a hearse, a formal ceremony or entombment is more costly than a direct burial or cremation. When you consider the costs of your funeral, you must take every extra expense into account in order to arrive at an accurate estimate of your financial needs will be. Ensuring you have enough coverage, your policy’s death benefit can also include money to cover the costs of preparatory tasks like washing, makeup, dressing, and embalming. In addition, it’s important to know the costs of a cemetery plot, a headstone and flowers must also be paid for separately and a procession, limousines, flowers and awake can also be included.

Social Security only pays a lump sum of $255 for final expenses to those who qualify.

– Social Security Administration

Funeral planning costs a considerable amount of money and the Social Security Administration isn’t going to cover the costs. It’s important you determine which type of funeral you wish to plan for and to ensure you accurately describe it with your will or advanced directive that designates a responsible party for carrying out your wishes. Ensuring you take the time to prepare for end-of-life expenses will ensure you protect your legacy so you’re loved ones don’t have to worry about going into debt to memorialize you.

How Much is Final Expense Insurance?

The specific insurance rates to provide for end-of-life expenses will depend on your age, gender, and other factors including your health but they are simple questions that don’t require a medical exam unlike most term life insurance plans over $50,000. To get an idea a male that is 65 years of age can expect to pay around $50-$70 per month for a $10,000 final expense policy.  The same policy for a female will run approximately $30-$50 per month.  Someone that is 70 years old and male could expect to pay $70-$100 for a $10,000 policy while a female would pay approximately $50-$90. Keep in mind you can get benefit amounts from $2,000 to $100,000 if you need more or less.

Expert Tip No matter where you are in your shopping experience, an independent final expense life insurance broker is imperative in securing the best policy at the lowest, possible price.

Securing the best rates from our providers is relatively easy and can be done from the comfort of your own home, especially as we face a nationwide Coronavirus pandemic. You can compare rates and apply online, which requires that you to complete a quote request and then complete a short form. If you have a minor or serious health condition, you may be required to purchase a policy with a graded or modified death benefit, which provides a graded death benefit amount after the first year or two of your participation but we can assist you in ensuring you can obtain the protection for your specific situation.

4 Types of Final Expense Insurance

  • Level Benefit with minimal health conditions. Typically are required to be in excellent health however while some companies might grade an individual for a specific health condition unfavorable another company might not care at all. These level benefit policies provide an immediate death benefit and an accelerated death benefit often times up to 50% of your death benefit if you have a terminal illness.
  • Graded Benefit for minor health conditions. Available for individuals with minor health conditions including Parkinson’s, liver disease, COPD or systemic lupus or even certain types of diabetes of cancer. There is often a waiting period up to three years before 100% of the benefit becomes available. Typically in the first year an individual may obtain 30% of the death benefit, 70% in year two and 100% in year three.
  • Modified Benefit with serious health conditions. Similar to Graded Benefit plans but with a two year waiting period before the death benefit becomes available. Some conditions such as alcoholism, angina, stroke, aneurysm and cancer are conditions that will only qualify you for a modified plan. If your death is a result of a non-accident during the first year of the policy, your premiums plus 5-10% would be returned. In year two, all premiums would be returned plus a higher %. A death occurring in year 3 or later would provide 100% of the death benefit amount.
  • Guaranteed Issue with serious health conditions. Similar to a Modified Benefit plan but more expensive. Two to three year waiting periods before the death benefit is available depending on the company.

What is the Best Burial or Final Expense Insurance Company?

Good question! There are five independent agencies that rate the financial strength of insurance companies based on letter grades of A-D. The better the grade the stronger financially the insurance company is. The factors usually take into consideration the creditworthiness and how that specific insurance company performs financially compared to other insurance companies but you’ll want to ensure they are financially sound.

Most people look for companies that have “A” ratings. But not all “A” ratings are the same. Some of the independent agencies have a different degree of “A” ratings adding an “A+” for their highest rating. On top of the grading, there are other factors you might want to consider like customer service and insurance costs. We continue to review many insurers before we offer their products to our clients while ensuring their financial ratings remain viable to ensure they fulfill their financial obligations to their insureds.

As a licensed, independent agency specializing in burial and cremation insurance planning for seniors, consider Prime Mutual to find the right policy so it fits your specific, individual needs.

  • Independent. Not captive to any one life insurance company
  • Ability to compare prices, costs and coverage from many providers
  • No-obligation and no-fees. We are paid by the insurance company

Why Prime Mutual

Although there are plenty of choices for funeral, pre-need, burial and cremation insurance available we only specialize in final expense life insurance. These policies are small death benefit, whole life insurance coverage with level premiums that don’t expire. They are primarily used to pay for funeral and cover your end-of-life expenses. Traditional term life insurance coverage is not the answer for everyone! If you are healthy or have minor health conditions we can find you the right amount of coverage at a price you can afford. If you don’t think you will qualify for a standard funeral policy because of a pre-existing medical condition with one company or have been turned down we can help!

Protecting your legacy is important for many seniors and before you sign a contract, compare life insurance quotes from several trusted, reliable providers such as Prime Mutual. Our convenient online resources make it easy to compare costs and coverage information with free quotes in the confidential setting of your home. Please reach out if you have a question or need any assistance in obtaining more information about any of your options.

Secure Your Legacy with Final Expense Insurance
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