Final expense insurance is simply a whole life policy with a small death benefit.  Final expense insurance is easier to get approved for. Final expense insurance is known by other names, such as “funeral insurance,” “burial insurance,” “simplified issue whole life insurance,” or “modified whole life insurance.” All are marketing terms that the insurance industry uses to sell small whole life policies with a (death benefit) of $2,000 to $50,000.

There are two basic types of Final Expense Insurance, guaranteed issue and non-guaranteed issue or regular final expense.  There are major differences in the coverage, and the application process.  It’s important to know the differences and review your present and/or pending coverage.

Guaranteed issue policies ask no health questions on the application and therefore, people who have significant health issues can get approved for these policies.  That’s the good news.  The bad news is that the death benefit usually has a 1- or 2-year waiting period.  What that means is if the insured dies within that waiting period, the beneficiary will not receive the death benefit.  However, the beneficiary will receive the premiums paid with interest.  These policies are much more expensive than non-guaranteed final expense policies and can also have a limited death benefit based on age.

The takeaway is Guaranteed issue policies are last resort policies!

Regular Final expense policies are non-guaranteed issue and ask health questions on the application.  The insured is underwritten on their health before the policy is issued.  The good news is that the regular final expense policies don’t have the waiting or limited death benefit clauses like the guaranteed issue policies do.  They are also less expensive.

The takeaway is If you qualify for a regular Final Expense Plan, then you qualify for Regular Life Insurance!

On most occasions, regular life insurance is less expensive, more comprehensive in coverage, and has other options in terms of type of policy, and some even come with a chronic rider which would help with long term care. Medquote does represent all the top life insurance companies as well as the final expense companies.You might also want to check the policy review video.

The takeaway is most likely it will profit you to schedule a policy review if you feel you don’t need guaranteed issue final expense!

This type of final expense insurance is a graded benefit policy with a partial waiting period. This type of policy might pay 30% to 40% of the death benefit if the insured dies during the first year the policy is in force, and it might pay 70% to 80% if the insured dies during the second year the policy is in force. If the insured dies after those first two years, then the policy would pay out 100% of the death benefit.

Generally, graded benefit final expense policies are for people who have health conditions that are only semi-serious. Examples include entering remission from cancer in the last 24 months, having congestive heart failure, or being treated for alcohol or drug abuse in the last 24 months. By comparison, a more serious condition, such as a terminal illness, currently being in cancer treatment, or having had heart surgery in the last 12 months, would only allow you to qualify for a guaranteed issue policy

The takeaway is Most likely, you do qualify for one of the final expense options!