Separating myth from fact
Final expense insurance is a smaller whole life policy meant for funeral costs and final bills. It is a simple idea, yet it attracts plenty of confusion, much of it from ads that leave out the details. Here are some common myths, and what is actually true, for anyone shopping in Wisconsin.
Myths about getting approved
Myth: everyone is approved. Fact: approval depends on the insurer and your answers. Level benefit plans ask a short list of health questions, and many insurers check prescription history and medical records. No one can promise approval before the insurer reviews the application.
Myth: plans with no health questions work the same as the others. Fact: a guaranteed issue plan asks no health questions, but it usually pays a limited benefit for a natural-cause death in the first two years, with smaller face amounts and higher premiums.
Talk to a licensed agent: (949) 807-3995
Myths about cost and coverage
Myth: the premium rises every year. Fact: final expense premiums are usually level, set at the start based on age, health, tobacco use and face amount. Myth: the coverage runs out. Fact: it is whole life insurance, and coverage does not expire as long as premiums are paid.
Myth: the funeral home gets the money. Fact: the insurer pays the benefit to your beneficiary, who decides how to use it, whether for the funeral home, a medical bill or other final costs.
Myths about how much you need
Myth: you need a large policy to cover a funeral. Fact: face amounts often run from a few thousand dollars up to about $50,000, and many people size theirs to the funeral they want. The National Funeral Directors Association's 2023 General Price List Study put the national median at $8,300 for a funeral with viewing and burial and $6,280 with viewing and cremation, and those medians do not include cemetery, plot, monument or marker costs.
Myth: graded plans never pay in full. Fact: the reduction only applies to a natural-cause death in the first two or three years. After that, the full face amount usually applies, and an accidental death is usually paid in full from the start.
Getting facts, not myths, from Wisconsin
Real quotes are the surest way past the myths. Tell the agent your age and tobacco use, and answer the health questions as each insurer words them. The agent then lines up quotes from several insurers and spells out, plan by plan, what would be paid in the early years. You can apply by phone if a plan fits, and the quote is free with no obligation.
Agents take calls Monday to Friday, 8am to 8pm Central time, and Eterna's licensed agents help Wisconsin residents compare plans from several insurers. Plans, prices and availability vary by state, insurer, age and health. To look up an agent's license or ask an insurance question, the Wisconsin Office of the Commissioner of Insurance is at https://oci.wi.gov/.
