Understanding Final Expense Plans

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End of Life Expenses

The median cost for a funeral can cost $5,150 to $7,640 for viewing and cremation or burial.

Source: nfda.org/news/statistics 

Some people may have pre-paid funeral options with a funeral home. There are advantages to Final Expense, however. 

• Final Expense is paid directly to loved ones 
• Final Expense is tax free and avoids probate 
• Additional funds can be used for additional expenses 
• Can be used at any funeral home. 

Here is a quick review on what Final Expense is, and how it can benefit your clients. 

What is Final Expense Insurance?

Final Expense insurance is a smaller simplified issue whole life insurance designed to help seniors cover funeral costs and end-of-life expenses. While some plans are higher, most plans will cap out at $25,000. This makes it more affordable than other types of life insurance like term or permanent insurance.

Is a paramedical exam necessary? A paramed exam is usually required for most types of life insurance, but this is not required for most carriers. That means coverage can be obtained with a simple underwriting call.

What are the Final Expense Plan Types? 

There are two types of plans: 

Immediate – provides full death benefit available from the start of the policy.

Graded – provides a full death benefit after a set time (usually 2-3 years) with an immediate return of the premium plus usually a percentage over, until the full benefit is available. 

(Note: Graded policies may be Guaranteed Issue (GI), which means no underwriting is necessary.) 

Final Expense After COVID 

Times have changed since the coronavirus pandemic. Before COVID-19, statistics revealed that in January 2020 36% of Americans who didn’t carry life insurance reported that they intended to purchase it within 12 months. By May of the same year, 53% expressed a need for life insurance because of COVID 19. 

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If you are a Medicare agent and have questions about Final Expense or Medicare, call Arnie Fulmer at 702-820-3133. Arnie Fulmer is a Senior Market Advisor and the principal owner of Fulmer Insurance Group, a Medicare Brokerage Agency located in Las Vegas and licensed in multiple states.