Who receives a final expense benefit
Final expense insurance is a smaller whole life policy meant for funeral costs and final bills. When the insured person passes away, the insurer pays the benefit to the beneficiary named on the policy. The beneficiary then decides how to use it, which gives a family room to handle the funeral and anything else that comes up.
Since the money goes to a person and not straight to a funeral home, choosing that person is one of the most important decisions on the application.
Choosing your beneficiary
Many people name a spouse or an adult child, often whoever is most likely to make the funeral arrangements. Others name a sibling or a close friend. What matters is that the person understands your wishes and can be trusted to pay the bills you had in mind.
- Use the person's full legal name and their relationship to you
- Talk with them about the kind of funeral you want
- Ask the agent whether a backup beneficiary can be added
- Keep the policy papers where your family can find them
Talk to a licensed agent: (949) 807-3995
Plan type affects what your beneficiary receives
The type of plan you qualify for decides how much your beneficiary would receive in the early years. With a level benefit plan, which has no medical exam and a short list of health questions, the full benefit is usually paid from the first day if you qualify.
With a graded or modified plan, a natural-cause death in the first two or three years pays a reduced amount, such as a percentage of the face amount or the premiums paid plus interest. A guaranteed issue plan asks no health questions, but the benefit is limited if death from natural causes happens in the first two years. On both, accidental death is usually covered in full from the start.
Setting the amount your beneficiary will need
Think about the bills your beneficiary will face. 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 a funeral with viewing and cremation at $6,280, and those medians do not include cemetery, plot, monument or marker costs. Add anything else you want handled, such as a final medical bill.
Premiums are usually level, and the coverage does not expire as long as premiums are paid. The face amount you choose today is the amount your beneficiary can plan around.
Getting a quote from North Dakota
On the call, the agent asks your age, tobacco use and the health questions insurers use, along with who you want as beneficiary. Quotes from several insurers are compared so you can see how much benefit your premium buys and whether there is any waiting period. You can apply by phone and name your beneficiary right then. The quote is free with no obligation.
Eterna's licensed agents compare plans from several insurers for North Dakota residents. Plans, prices and availability vary by state, insurer, age and health. Calls are answered every day, 8am to 8pm Central time for most of the state and 7am to 7pm Mountain time in the southwest corner. You can look up an agent's license, or ask a question about an insurer, with the North Dakota Insurance Department at https://www.insurance.nd.gov/.
