When people hear “new life services,” they’re usually referring to final expense insurance—a specialized type of life insurance designed to handle the financial burden that comes with end-of-life expenses. After over a decade as an independent agent and more than 20 years in financial services, I’ve seen firsthand how these policies provide peace of mind for individuals and relief for families during difficult times.
For a complete overview, see understanding burial insurance.
I once worked with a woman buying a final expense policy who told me she stretched $5 to feed herself for two days. Money was that tight. But she still wanted coverage because she didn’t want her children burdened with funeral costs. That’s the kind of determination I see in people who understand why this matters.
Understanding Final Expense Insurance
Final expense insurance, also known as burial insurance or funeral insurance, is a type of whole life insurance with a smaller death benefit—typically ranging from $5,000 to $50,000. Unlike traditional life insurance that might focus on replacing decades of income, final expense coverage is specifically designed to handle immediate costs that arise when someone passes away.
The average funeral today costs between $7,000 and $12,000, but that’s just the beginning. Final expenses often include:
- Funeral and burial costs
- Outstanding medical bills
- Credit card debt
- Personal loans
- Probate and legal fees
- Final income taxes
- Immediate family expenses during the grieving period
What makes final expense insurance unique is its simplified approach. Most policies require no medical exam, have simplified health questions, and can be approved within days rather than weeks. This accessibility makes it an ideal solution for people who might struggle to qualify for traditional life insurance due to age or health conditions.
How Final Expense Policies Work
Final expense insurance operates as permanent whole life coverage, meaning it stays in force as long as premiums are paid. The premiums remain level throughout the life of the policy, and the death benefit is guaranteed. Many policies also build modest cash value over time, though this isn’t typically the primary focus.
The application process is streamlined compared to traditional life insurance. Instead of medical exams, blood work, and extensive health questionnaires, most final expense policies use simplified underwriting. This might involve:
- A short health questionnaire (usually 3-8 questions)
- A brief phone interview
- Review of prescription drug history
- Sometimes a telephone health interview
From my experience working with thousands of applicants over the years, I’ve learned which carriers are lenient on certain conditions and which ones aren’t—knowledge that only comes from helping people navigate real situations. The key is matching the right applicant with the right carrier based on their specific health profile.
Types of Final Expense Coverage
Not all final expense policies are created equal. There are generally three types of coverage you’ll encounter:
Immediate Coverage: These policies provide full death benefit protection from day one, assuming you qualify based on health questions. This is typically available for people in relatively good health who can answer “no” to most health-related questions.
Graded Benefit: If you have some health issues but don’t qualify for immediate coverage, you might be offered a graded benefit policy. These policies have a waiting period—usually two to three years—before the full death benefit is available. If death occurs during this period due to natural causes, the policy might return premiums plus interest or pay a percentage of the death benefit.
Guaranteed Acceptance: These policies accept anyone within the eligible age range (typically 50-85) with no health questions asked. However, they come with a waiting period before full benefits are available and typically have higher premiums relative to the coverage amount.
Who Should Consider Final Expense Insurance
Final expense insurance isn’t right for everyone, but it serves specific needs exceptionally well. I typically recommend considering this coverage if you:
- Are between ages 50-85 and have limited life insurance
- Have health conditions that make traditional life insurance difficult to obtain
- Want to ensure your family isn’t burdened with end-of-life expenses
- Prefer simple, predictable coverage without complex underwriting
- Need coverage quickly without medical exams or lengthy approval processes
- Want guaranteed premiums that won’t increase over time
I’ve helped hundreds of people who were told “no” by other agents or carriers find the coverage they needed. Often, it’s simply a matter of finding the right carrier match for their particular situation.
Common Health Conditions and Final Expense Coverage
One of the biggest advantages of final expense insurance is its accessibility for people with health conditions. During my years in a high-volume life insurance call center, I had thousands of conversations and learned more about underwriting than any textbook could teach.
Many conditions that might disqualify someone for traditional life insurance can still be acceptable for final expense coverage:
- Controlled diabetes with reasonable A1C levels
- High blood pressure managed with medication
- Heart conditions with stable treatment
- COPD or other respiratory issues
- Previous cancer with no recent recurrence
- Arthritis and joint problems
- Mental health conditions with stable treatment
The key is being honest about your health situation. Lying or minimizing conditions leads to declined applications. Honesty leads to finding the right carrier match and better outcomes.
I’ve worked with hundreds of diabetics over the years. Some had A1Cs that were too high to get approved right away. But instead of giving up, I worked with them—sometimes for months—encouraging them to work with their doctors, improve their diet, and get their numbers down. When they did, we reapplied and got them approved. That’s the kind of patience other agents don’t always have.
Cost Factors and Pricing
Final expense insurance premiums are based on several factors:
- Age at application
- Gender (women typically pay less due to longer life expectancy)
- Health condition
- Tobacco use
- Coverage amount
- Geographic location
Premiums are level, meaning they stay the same throughout the life of the policy. A 65-year-old purchasing a $10,000 final expense policy might pay anywhere from $40 to $120 per month, depending on health and carrier.
The cost might seem significant on a monthly basis, but consider the alternative. Without coverage, your family could face thousands of dollars in immediate expenses during an already difficult time. The peace of mind that comes with knowing these costs are handled often outweighs the monthly premium expense.
The Application and Approval Process
The simplified nature of final expense insurance makes the application process much smoother than traditional life insurance. Here’s what typically happens:
First, we discuss your needs and determine the appropriate coverage amount. Then we complete a brief application, usually over the phone, covering basic information and a short health questionnaire. Many carriers can provide instant decisions or approval within 24-48 hours.
If a phone interview is required, it’s usually brief and focuses on clarifying answers from the application. Some carriers also review prescription drug databases to verify medications and dosages match what was reported.
Once approved, coverage typically begins immediately, though graded benefit policies have waiting periods for natural death claims. Premiums can often be set up for automatic withdrawal from a bank account or charged to a credit card.
Comparing Final Expense Carriers
Not all final expense carriers are the same, and matching the right applicant with the right carrier is crucial for approval. Some carriers are more lenient with diabetes, others with heart conditions, and still others with respiratory issues.
When evaluating carriers, I look at:
- Health condition tolerances
- Premium competitiveness
- Financial stability ratings
- Claims paying history
- Customer service quality
- Available coverage amounts
- Age ranges accepted
I work with multiple carriers specifically because different companies excel in different areas. This allows me to find the best fit for each person’s unique situation rather than trying to force everyone into the same box.
Beyond Basic Coverage: Additional Benefits
Many final expense policies offer additional benefits that can provide extra value:
Accidental Death Benefit: Some policies include double or triple coverage if death results from an accident. This is typically included at no extra cost.
Child/Grandchild Coverage: Many policies allow adding small amounts of coverage for children or grandchildren, often for just a few dollars per month.
Waiver of Premium: If you become disabled and unable to work, this rider continues your coverage without premium payments.
Cash Value Growth: While modest, the cash value that builds in whole life final expense policies can be accessed through loans or withdrawals if needed.
The key is understanding what benefits are included versus optional, and whether the additional cost makes sense for your situation.
Key Takeaways:
• Final expense insurance provides $5,000-$50,000 of coverage specifically designed for end-of-life costs like funerals, medical bills, and debts
• Most policies require no medical exam and use simplified underwriting with just a few health questions, making approval faster and more accessible
• Three main types exist: immediate coverage, graded benefit (with waiting periods), and guaranteed acceptance (no health questions but higher premiums)
• Many health conditions that disqualify people from traditional life insurance are still acceptable for final expense coverage
• Premiums remain level for life, and coverage is permanent as long as premiums are paid
• The key to approval is honest disclosure of health conditions and working with an agent who knows which carriers are best for specific situations
• Beyond basic coverage, many policies offer additional benefits like accidental death coverage and the ability to add coverage for children or grandchildren
If you’re considering final expense insurance, don’t wait for the “perfect” time—there rarely is one. Something always comes up: an unexpected bill, a car repair, or other expenses that push insurance decisions to the back burner. But your family’s protection shouldn’t be delayed indefinitely.
The most important step is having an honest conversation about your health situation and goals with someone who understands the market. I’d be happy to discuss your specific needs and help you find coverage that fits your situation and budget. My approach is to understand what you’re looking to accomplish and help you achieve that in the most efficient and simple way possible. Contact Heritage Life Solutions today to explore your final expense insurance options and secure the peace of mind your family deserves.
