burial insurance

Final Expense Insurance: Everything You Need to Know

Note: Halo does not offer specific life insurance for final expenses, although our term or whole life insurance plans for seniors ages 66-85 can be used for these costs. This information is shared to help our customers make an informed decision about their life insurance needs.

Funerals, burials, and cremations can be expensive. In 2021, the average cost of a funeral with burial was $7,848. The average price of a funeral with cremation was only slightly lower, costing approximately $6,971.

While many people rely on personal savings to cover end-of-life expenses, others choose to purchase final expense insurance. Having an insurance policy can be a good option if you want to help your loved ones pay for your final wishes.

While Halo does not sell insurance specifically for final expenses, our term and whole life insurance policies are a great alternative to setting aside funds for a memorial service. Our whole life insurance policies offer guaranteed payout, making them a great option for people between the ages of 66 and 85 who want to have a defined burial plan.

What is final expense insurance?

Final expense insurance is a type of permanent life insurance. When you die, your beneficiary receives a death benefit to pay for funeral services, cremation services, final medical bills, and unpaid debts, such as mortgages.

While final expense life insurance is generally intended to cover end-of-life costs, the money can be used for any purpose and is tax-free. You also have the option of designating a funeral home as the beneficiary so that they receive the payment directly.

One of the biggest benefits of final expense life insurance is that coverage is guaranteed and there is no medical exam required (just a few basic health questions). Unlike traditional term or whole life insurance, everyone who applies for final expense insurance is approved.

Another advantage is that final expense policies accumulate cash value. When that cash value reaches a certain amount, you have the option to borrow some of that money, much like a personal loan. If you don't repay the cash value, it will be deducted from your death benefit.

Final expense insurance can be a good option for seniors or people whose health makes it difficult to get approved for term life insurance. However, it offers limited coverage compared to other types of life insurance.

How much does final expense life insurance cost?

Final expense life insurance premiums are customized for each individual, and the cost depends on several criteria.

While final expense insurance does not require a medical exam, your answers to the health questionnaire will be used to determine the amount of coverage and premium. Some of the factors that influence the amount are:

- Location
- Age
- Gender
– General health
– Tobacco use
– Credit history

Compared to term life insurance, the cost of final expense insurance is higher. This is because everyone is eligible, including older people and those with pre-existing health conditions. The more coverage, the higher the premium.

Who Needs Final Expense Insurance?

Final expense life insurance has several advantages. Most notably, everyone who applies is approved, which is not the case with other types of life insurance.

Final expense insurance is often recommended for seniors who may not qualify for traditional life insurance due to their age. It’s also a good option for people with pre-existing health conditions or family medical history that disqualify them from a standard policy.

Additionally, final expense insurance is useful for those who want to pay for their own funeral. Burial and cremation services can be expensive, so insurance provides peace of mind knowing that your loved ones won’t have to dip into their savings to cover these expenses.

However, final expense coverage isn’t the best product for everyone. If you’re young and healthy, for example, you can probably qualify for term life insurance, which offers more coverage and a lower premium.

You can check out Halo's guide to insurance for different ages if you need help deciding which type of life insurance is best for your stage of life.

How to Get Whole Life Insurance with Halo

Getting whole life insurance with Halo is quick and easy. Coverage is available to seniors between the ages of 66 and 85, and no medical exam is required.

To start your application, simply enter some basic information about yourself and your health. Based on your answers, you will see your rate estimate and the amount of coverage you qualify for (between $1,000 and $30,000).

You can purchase the policy online, and your coverage begins immediately after you pay your first premium. Your rate never changes, and you'll be covered for life as long as you continue to make monthly payments. While Halo does not sell insurance specifically for final expenses, all of our policies can be used however your beneficiary prefers. Burial Insurance