Questions about how the plan pays
Final expense insurance is a smaller whole life policy meant for funeral costs and final bills. The benefit goes to the beneficiary you name, who decides how to use it. Before you choose a plan, it's worth understanding exactly when and how much it pays.
- Is this a level benefit plan, or does it reduce the benefit in the first two or three years?
- If it's a graded or modified plan, what does it pay for natural death early on?
- Is accidental death covered in full from the start?
- If it's guaranteed issue, how is the benefit limited in the first two years?
Questions about cost
Ask whether the premium is level. Most final expense premiums are set when the policy starts and don't go up. Ask too whether coverage lasts for life. With whole life coverage, it doesn't expire as long as premiums are paid.
It also helps to ask for quotes at more than one face amount. Amounts often run from a few thousand dollars up to about $50,000. Seeing two or three side by side makes the trade-off between coverage and premium easier to judge.
If you're unsure what to aim for, ask about national figures. The National Funeral Directors Association's 2023 General Price List Study put the national median cost of a funeral with viewing and burial at $8,300, and with viewing and cremation at $6,280, not including cemetery, plot, monument or marker costs.
Talk to a licensed agent: (949) 807-3995
Questions about the health questions
Most final expense plans have no medical exam, but many insurers ask health questions and check prescription history. Ask the agent to read each question slowly, and ask what happens if you answer yes. Insurers write their own questions, so a yes with one insurer may lead to a different plan with another.
It is also fair to ask how far back the questions look. Many insurers focus on the last 2 to 5 years, and some ask about specific things such as insulin, oxygen use or help with daily activities. Knowing this ahead of time helps you gather the right details before you call.
Questions about who you are dealing with
Start with who is selling the policy and who issues it. Eterna is an independent insurance agency whose licensed agents help Kentucky residents compare plans from several insurers. The policy itself is issued by the insurer you choose, so ask which insurer each quote is from. Plans, prices and availability vary by state, insurer, age and health.
You can also check an agent's license yourself. The Kentucky Department of Insurance, at https://insurance.ky.gov/, licenses agents and regulates insurers, and it accepts consumer questions and complaints.
On the call, the agent asks your age, the amount you want and the health questions, then compares quotes from several insurers. Bring your list of questions and ask every one. You can apply by phone if you're satisfied, the quote is free, and there is no obligation. Agents take calls Monday to Friday, 9am to 9pm Eastern time in eastern Kentucky and 8am to 8pm Central time in western Kentucky.
