Life Insurance
Your Questions, Answered
“Final Expense” is simply a type of Whole Life policy. It’s a marketing term for a small, simple whole life policy (typically $10,000–$25,000) that is designed to cover funeral costs and be easy for seniors to qualify for.
Not necessarily. If you have serious health issues, you may be denied a Simplified Issue plan. However, you can still apply for a Guaranteed Issue policy, which has no health questions and guarantees approval (though it has a two-year waiting period).
No. The payout is a tax-free lump sum of cash paid directly to your chosen beneficiary (usually a family member). They then use that cash to pay the funeral home and any other final bills.
The biggest risk is that it expires. If you buy a 10-year term policy at age 65, you are paying for coverage that disappears when you turn 75, leaving your family unprotected. Final expense insurance is permanent.
ou should never drop Uninsured/Underinsured Motorist (UM/UIM) coverage. This protects your retirement assets (like your home and savings) if a driver with no insurance causes a serious accident that results in injury to you.
Final Expense policies are a form of Whole Life insurance. The policy’s rate is locked in based on your age at the time of purchase and is guaranteed to remain fixed for the rest of your life.
