Final Expense Insurance
Final Expense insurance is a type of insurance that provides coverage for end-of-life expenses, such as funeral costs and burial expenses. It is designed to help alleviate the financial burden on loved ones who may not have the means to cover these costs themselves.
With the increasing costs of funerals and burials, Final Expense insurance is becoming a popular option for those looking to ensure their loved ones are taken care of after they are gone. In this article, we will explore what Final Expense insurance is, how it works, and why it is an essential part of any comprehensive insurance plan.
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Your Final Expense Options
Most people get final expense insurance to cover funeral and burial costs, medical bills, other end-of-life expenses, credit card debt. You can also choose to add protection to cover terminal illness and take advance payments for treatment or medical bills.
Funeral expenses are getting higher and higher each year. In 1960, the average cost of a funeral without a vault was just over $700. In 1985, that number rose to $2,737. In 2014, the average cost was more than $8,508. For 2022, Oregon’s average funeral expense is $10,418. And the costs will continue to rise!
The cheapest final expense insurance and funeral plans in Oregon are as low as one dollar a day. Yes, that’s right. With a little long-term planning, you can ensure your final expense insurance will help your family exactly the way you want it to when you pass away.
You have the option to purchase up to $100,000 of policy coverage that can extend to the age of 100.
What is Final Expense Insurance?
Final Expense insurance is a type of life insurance that provides coverage for end-of-life expenses. It is a form of permanent life insurance that is designed to provide a death benefit that can be used to cover expenses such as funeral costs, burial expenses, and outstanding debts. This type of insurance is designed to provide peace of mind to both the policyholder and their loved ones, ensuring that their final expenses are taken care of without any financial burden.
How Does Final Expense Insurance Work?
Final Expense insurance works by providing a death benefit to the policyholder’s beneficiaries. This death benefit is a lump sum of money that is paid out when the policyholder passes away. The policyholder pays a monthly premium to maintain the coverage, and the death benefit is guaranteed, regardless of the policyholder’s age or health at the time of death. The policyholder can choose the amount of coverage they would like to have, based on their needs and budget.
Why is Final Expense Insurance Important?
There are several benefits to obtaining Final Expense Insurance, including:
Peace of mind: With Final Expense Insurance, the policyholder’s loved ones will not have to worry about the financial burden of paying for their end-of-life expenses. This can provide peace of mind for both the policyholder and their loved ones.
No medical exam: Unlike traditional life insurance policies, Final Expense Insurance does not require a medical exam. This makes it a more accessible option for individuals who may have difficulty obtaining traditional life insurance.
Affordable coverage: Final Expense Insurance policies are designed to be more affordable than traditional life insurance policies, making it a more accessible option for individuals with limited financial resources.
Coverage for specific needs: Final Expense Insurance policies can be tailored to meet the specific needs of the policyholder, such as covering the costs of a funeral, cremation, or burial services.
Types of Final Expense Insurance
Term Life
This is the cheapest final expense insurance option. It is a temporary coverage limited to a certain number of years (the term). Depending on your current age and other life factors, you may purchase a 10, 15, 20, 25, or 30-year term.
Whole Life
This is permanent coverage, and includes a death benefit plus an investment. Some of the premium you pay every month goes to build cash value. It is also usually the most expensive form of coverage because most policies do not require a medical exam for approval.
Guaranteed Universal Life (GUL)
This policy is often referred to as a hybrid between term and whole life. Rates are a little more expensive than term life, but less expensive than whole life, and instead of selecting coverage for a limited number of years, you get to choose up until a certain age, such as 90, 95, 100, 105, 110, or 120.
Facts about Final Expense Insurance in Oregon
- Final expense policies don’t expire like term policies.
- In most cases, a medical exam isn’t required.
- The average final expense policy costs between $30 – $70 a month.
- Premiums depend on your age, sex, health, amount of coverage, and the specific insurance company you choose
- You can get instant quotes from a trusted insurance consultant like Health Plans In Oregon.
How Much Does Final Expense Insurance Cost?
The average final expense policy costs between $30 – $70 a month. Premiums depend upon health, age, and the amount of coverage. Of course, different burial insurance companies have different rate charts. To give you an idea, consider a list of sample burial insurance rates for a 59-year-old woman who smokes:
- $5,000: $22.65
- $10,000: $43.08
- $15,000: $63.51
Who Qualifies for Final Expense Insurance?
We can find a burial insurance policy for almost everybody, but choosing the right plan might save money and get you better benefits. For example, you can buy guaranteed acceptance life insurance plans that accept any qualified person from about age 50 to over 80. However, these plans impose a waiting period. If the insured person dies before this waiting period ends, the plan may only return premiums or pay some percentage of the face value. In some cases, it might be better to answer a few health questions and try to qualify for cheaper rates and better pay out.
Choosing the Right Final Expense Insurance Policy
When choosing a Final Expense Insurance policy, there are several factors to consider, including:
Premium: The premium is the amount the policyholder pays each month for the insurance coverage. It is important to choose a policy with a premium that fits within your budget.
Benefit amount: The benefit amount is the lump-sum payment the policyholder’s beneficiaries will receive upon their death. It is important to choose a benefit amount that will cover the policyholder’s end-of-life expenses.
Term length: The term length is the length of time the policy is in effect. It is important to choose a term length that fits the policyholder’s needs and budget.
Provider: It is important to choose a reputable and reliable insurance provider that has a proven track record of providing quality insurance coverage.
And here’s the most important part…
The right amount — In selecting your Final Expense policy, you will have to determine how much coverage you should purchase. You’ll need to determine how much is needed by your family in order to pay your funeral expenses, medical bills or debts you may leave behind. Don’t worry because we are here to guide you in every step you make.
Frequently Asked Questions
1. Who needs final expense insurance? Anyone can buy final expense insurance, but it’s often purchased by older adults who are concerned about covering the costs of their funeral and other end-of-life expenses, and want to relieve the financial burden on their loved ones.
2. Does Final Expense Insurance Expire?
Depending on which Final Expense policy you choose, some final expense insurance doesn’t expire as long as you continue paying your premium.
3. How long does final expense insurance last? The length of the coverage depends on the policy you choose. Some final expense insurance policies are designed to last for the duration of your life, while others may have a set term, such as 10 or 20 years.
4. Can I buy final expense insurance for someone else? Yes, you can buy final expense insurance for someone else, such as a spouse, parent, or other loved one. In this case, you would be the policyholder and the death benefit would be paid out to the named beneficiary if the insured person passes away.
When you consult with us:
You will have a number of different options to choose from. To give your family the coverage that will help them the most, you will need to compare all of the different final expense insurance policies available to you. Health Plans In Oregon is here to help you and there is no obligation to sign up.
Need help? Call Health Plans in Oregon: 503-928-6918. Our assistance is at no cost to you.
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