Final expense insurance in plain words
Final expense insurance is a smaller whole life policy meant to pay for a funeral and final bills. If you are shopping in Washington and the terms feel confusing, you are not alone. Knowing a handful of words makes it much easier to compare plans and ask good questions. Below are the terms you are most likely to hear, grouped by what they describe.
Words about the policy
In practice, people often set the face amount by looking at funeral prices. One handy reference is the National Funeral Directors Association's 2023 General Price List Study: a national median of $8,300 for a funeral with viewing and burial, and $6,280 for viewing and cremation. Those numbers do not cover a cemetery plot, monument or marker.
- Whole life: coverage that does not expire as long as premiums are paid
- Face amount: the benefit the policy pays, chosen when you apply
- Level premium: a premium set at the start that does not go up as you age
- Beneficiary: the person who receives the benefit and decides how to use it
- Issue age: the ages an insurer accepts, often 50 to 85 for these plans
Talk to a licensed agent: (949) 807-3995
Words about qualifying
Many insurers ask about diagnosis dates, hospital stays, medications, oxygen use, tobacco use and conditions in the last 2 to 5 years. Your answers decide which type of plan fits, and each insurer sets its own rules.
- Underwriting: how an insurer decides which plan to offer, based on your answers
- Simplified issue: no medical exam, just a short list of yes or no health questions
- Prescription check: a review of your medication history that many insurers run
- Insurable interest: what a buyer needs to take out a policy on someone else, such as a parent
Words about how a plan pays
Level benefit means the full face amount is usually paid from the first day if you qualify. Graded or modified benefit means that if death from natural causes happens in the first two or three years, the benefit is reduced or limited, such as a percentage of the face amount or the premiums paid plus interest. Accidental death is usually covered in full from the start.
Guaranteed issue means no health questions and no medical exam, with acceptance guaranteed within the plan's eligible ages. These plans usually have a limited benefit for a natural-cause death in the first two years, smaller face amounts and higher premiums.
Putting the words to work from Washington
On the call, the agent will use these terms, and you can stop and ask what any of them means. They will ask your age, tobacco use and the insurers' health questions, then compare quotes from several insurers and tell you, for each plan, the face amount, the premium and whether the benefit is level or graded. You can apply by phone if one fits, with no obligation.
Eterna's licensed agents help Washington residents compare plans from several insurers, every day, 6am to 6pm Pacific time. Plans, prices and availability vary by state, insurer, age and health. You can look up an agent's license, or ask a question about insurance, with the Washington Office of the Insurance Commissioner at https://www.insurance.wa.gov/.
