The basics in plain terms
Final expense insurance, also called burial insurance, is a type of whole life insurance. It is built for one purpose: to leave money for your funeral and the bills that come at the end of life. The face amounts are smaller than most life insurance, usually from a few thousand dollars up to about $50,000, depending on the insurer, your age and your state. Plans are often available from age 50 to 85, and some start at 40 or 45.
Three features set it apart. The premium is usually level, so it does not go up as you age. Coverage does not expire as long as premiums are paid. And the benefit goes to your beneficiary, who decides how to spend it.
From quote to policy in four steps
Most final expense plans are sold in a single conversation. You give your information, answer the questions and choose a plan. The insurer then reviews the application, often checking prescription history and medical records, and decides whether to issue the policy. The steps look like this.
- Choose an amount: many people start with the funeral they want and add final bills
- Answer health questions: most plans have no medical exam
- Get matched to a plan type: level, graded or one with no health questions
- Apply and name a beneficiary: the insurer reviews the application and issues the policy
Talk to a licensed agent: (949) 807-3995
How the plan type is decided
Your health answers decide which kind of plan you get. A level benefit plan, also called simplified issue, asks a short list of yes or no questions. If you qualify, the full benefit is usually paid from the first day. A graded or modified benefit plan is for some health histories. If death from natural causes happens in the first two or three years, the benefit is reduced or limited. Accidental death is usually covered in full from the start.
A guaranteed issue plan asks no health questions and has no medical exam, and acceptance is guaranteed within the plan's eligible ages. In return, it usually pays a limited benefit if death from natural causes happens in the first two years, often the premiums paid plus interest. These plans usually have smaller face amounts and higher premiums.
When the benefit is paid
When the insured person dies, the insurer pays the face amount to the beneficiary, usually as one lump sum. Because the money goes to a person and not to a funeral home, your beneficiary can use it for the funeral, a final medical bill, a credit card or anything else that needs paying.
It is a good idea to tell your beneficiary that the policy exists and where to find the papers, and to write down whether you want burial or cremation. A new policy also usually comes with a free-look period, a set number of days to review it and get a refund if you decide it is not right for you. The length depends on the state.
Starting with a call
If you call Eterna, a licensed agent walks you through the same steps on the phone. They ask your age, state, tobacco use and the health questions, and they compare final expense plans from several insurers to show which type you may qualify for and what each one charges. You can apply by phone during the call. The quote is free, and you are under no obligation.
