The short answer
If you are pricing final expense insurance, you will notice quotes can vary a lot. That is because carriers ask different health questions and price risk differently.
Here is what drives the cost and how to get a fair rate.
Part of our complete guide: Final Expense Insurance: The Complete Guide.
Quick answer
Age, health answers and policy type drive the price. A level-benefit plan costs less than graded or guaranteed acceptance options. Carriers word health questions differently, so comparing helps.
MarketView Agency is an independent insurance agency (National Producer Number 18345705).
On this page
- Final expense rates: what affects the cost of final expense insurance?
- How to pay less for final expense coverage
- Which kind of final expense policy fits?
- How much final expense coverage do you need?
- Why work with an independent agency
- Do you need an exam for burial insurance?
- Who gets the money: naming beneficiaries
- Who final expense insurance is for
- Frequently asked questions
Final expense rates: what affects the cost of final expense insurance?
- Age. Rates are based on your age when you apply.
- Health answers. They decide which policy type you qualify for.
- Tobacco use. Usually raises the price.
- Coverage amount. Final expense amounts are modest, which keeps premiums manageable.
- Policy type. Level benefit costs less than graded or guaranteed acceptance options.
- Carrier. Insurers ask different health questions and price differently.
Comparing carriers matters a lot here. The same health history can qualify for a level benefit with one insurer and only a graded benefit with another.
How to pay less for final expense coverage
- Pick a realistic amount based on local costs, not the largest amount offered.
- Apply for a level-benefit policy first. It usually costs less than graded or guaranteed acceptance options.
- Compare carriers. Their health questions and pricing differ.
- Buy sooner. Rates are based on your age when you apply.
- Ask about payment options. Some carriers price bank-draft payments a little better.
Compare rates from several carriers in about two minutes. Free, no obligation.
Which kind of final expense policy fits?
Final expense policies come in a few types. The right one depends mostly on your health.
| Feature | Simplified issue (level benefit) | Graded benefit | Guaranteed acceptance options |
|---|---|---|---|
| Health questions | A short list | A short list | None |
| Medical exam | Usually none | Usually none | None |
| Full benefit from day one | Yes | After a waiting period | After a waiting period, usually two years |
| Price | Lowest of the three | Higher | Highest |
With waiting periods, if the insured passes away from natural causes early in the policy, the plan usually refunds premiums plus some interest instead of paying the full benefit. Accidental causes are often covered in full from the start. Check the policy terms.
How much final expense coverage do you need?
There is no standard amount. Cremation usually costs less than a traditional burial. A small service costs less than a large one. Think about what you want, check local prices, and add a cushion for bills.
If budget is tight, a smaller policy is still meaningful. It can cover the most urgent costs so your family is not caught off guard.
Why work with an independent agency
We are an independent agency, which means we are not tied to one insurer. We compare plans from several carriers and help you pick the one that fits.
- More choices. Several carriers, not one.
- Help with health history. Some carriers view certain conditions more favorably than others.
- No added cost. Premiums are set by the carrier, not the agent.
- No pressure. If a policy is not a fit, we will say so.
How to get covered in 3 steps
- Check your rate. Pick your state and answer a few quick questions about the coverage you want.
- Compare carriers. A licensed agent compares final expense insurance options from several insurers and explains the trade-offs.
- Apply and get covered. Many applications take one phone call. Coverage starts once the policy is issued and the first premium is paid.
Do you need an exam for burial insurance?
Most final expense policies do not require a medical exam. Approval is based on a short set of health questions and a check of prescription records. That is why applications are quick, often finished on a single call.
If you can answer the health questions favorably, you may qualify for a level benefit from day one. If not, graded or guaranteed acceptance options may be available.
Who gets the money: naming beneficiaries
Your beneficiary is the person, people or trust that receives the death benefit. Name a primary beneficiary and at least one contingent beneficiary, who receives the money if the primary beneficiary has already passed away.
- Use full names. "My children" can cause delays. Full names and relationships are clearer.
- Split it if you like. You can divide the benefit among several people in shares you choose.
- Think about minors. Insurers generally will not pay a large sum straight to a child. A trust or a custodian named under your state's rules avoids a court-appointed guardian.
- Review after life events. Marriage, divorce, a new baby or a loss in the family are all reasons to check your choices.
Beneficiary designations usually override your will. If your will says one thing and your policy says another, the policy form generally controls. Keep them in sync, and ask an attorney if your situation is complex.
Who final expense insurance is for
Often a good fit
- you want your family to have cash for final costs without dipping into savings.
- you want lifelong coverage with a simple application.
Maybe not the right fit
- you already have life insurance or savings set aside for this.
- you need a large amount to replace income; term life may fit better.