NGL Funeral Insurance: Understanding Final Expense Coverage Options

For a complete overview, see our comprehensive final expense guide.

As an independent insurance agent with over 20 years in financial services, I’ve helped hundreds of families secure final expense coverage when they needed it most. The reality is that funeral costs continue to rise, and many families find themselves unprepared for the financial burden that comes during an already difficult time.

When people ask me about NGL funeral insurance specifically, I always start with the bigger picture. While NGL Insurance is one company offering final expense coverage, there are numerous carriers in this space, each with different underwriting guidelines, health requirements, and pricing structures. My job is to help you understand how this type of coverage works and find the option that makes the most sense for your specific situation.

Understanding Final Expense Insurance Basics

Final expense insurance, sometimes called burial insurance or funeral insurance, is a type of permanent life insurance designed specifically to cover end-of-life costs. Unlike term life insurance that provides coverage for a specific period, final expense policies remain in force for your entire life as long as premiums are paid.

These policies typically offer coverage amounts between $5,000 and $50,000 – enough to handle funeral costs, burial expenses, outstanding medical bills, and other final obligations without burdening your family. The average funeral costs between $7,000 and $12,000, depending on your location and preferences, so even a modest policy can provide meaningful protection.

What makes final expense insurance unique is its simplified approach to underwriting. Most policies require only basic health questions rather than medical exams, making them accessible to people who might struggle to qualify for traditional life insurance. This simplified process means you can often get approved and have coverage in place within days rather than weeks.

The premiums for final expense insurance remain level throughout your life, meaning the amount you pay today is the same amount you’ll pay years from now. This predictability helps with budgeting and ensures your coverage won’t become unaffordable as you age.

How NGL and Other Carriers Structure Final Expense Policies

When I work with clients exploring final expense coverage, I explain that carriers like NGL typically offer three main types of policies, each with different health requirements and waiting periods:

• Immediate coverage policies provide full death benefits from day one but require you to pass more detailed health screening questions
• Graded benefit policies offer partial coverage initially (typically 110-125% of premiums paid) with full coverage beginning after two years
• Guaranteed acceptance policies require no health questions but include waiting periods of 2-3 years before full benefits are available

The type of policy you qualify for depends on your current health status and medical history. Someone with well-controlled diabetes might qualify for immediate coverage, while someone with more serious health conditions might need a graded benefit or guaranteed acceptance option.

Most final expense policies also build cash value over time, meaning you can borrow against the policy or surrender it for cash if needed. However, the primary purpose isn’t cash accumulation – it’s providing your family with immediate funds when they need them most.

Common Health Conditions and Underwriting Considerations

Having worked with thousands of applicants over my career, I’ve learned that many people assume their health conditions will automatically disqualify them from coverage. The reality is quite different with final expense insurance.

Carriers in this market are generally more lenient because they’re dealing with an older demographic and smaller coverage amounts. Here’s what I typically see regarding common health conditions:

• Controlled diabetes often qualifies for immediate coverage if your A1C levels are reasonable and you’re compliant with treatment
• Heart conditions may qualify depending on how recent they were and your current stability
• High blood pressure rarely causes issues if it’s being treated and controlled
• Previous cancer may qualify after a waiting period, depending on the type and how long you’ve been in remission

What surprises many people is that being honest about your health conditions often leads to better outcomes than trying to minimize them. When I help someone apply, I work to match them with carriers that are known to be more favorable toward their specific health situation.

Alternatives to Traditional Final Expense Policies

While final expense insurance serves an important purpose, it’s not always the most cost-effective solution for everyone. In my experience, people in reasonably good health often have better options available.

Traditional term or whole life insurance policies typically offer much better value if you can qualify medically. A healthy 60-year-old might pay $40-50 monthly for a $25,000 final expense policy, while that same person could potentially get $100,000 of term life insurance for a similar premium.

For those who can’t qualify for traditional coverage due to health issues, here are the realistic alternatives I discuss with clients:

• Pre-need funeral insurance purchased directly from funeral homes, though this limits your options and may not keep pace with inflation
• Savings accounts specifically earmarked for final expenses, though this requires discipline and immediate availability may be an issue
• Small whole life policies from mutual companies that may offer better long-term value despite slightly higher initial premiums

The key is honest assessment of your health status and financial situation. I’ve helped people who were convinced they needed expensive guaranteed acceptance policies discover they actually qualified for much better traditional coverage.

Making the Right Choice for Your Situation

When families ask me whether NGL funeral insurance or any final expense policy makes sense for them, I always start with a few key questions. What specific expenses are you trying to cover? How much can you comfortably afford monthly? What’s your current health status? Are you looking for just final expense coverage, or do you want to leave something additional for your family?

These questions help determine whether final expense insurance is the right solution or if alternatives might better serve your needs. Someone with $20,000 in savings might be better served putting that money into a properly designed life insurance policy that provides more coverage and better growth potential.

For those who do need final expense coverage, shopping around is crucial. Different carriers have vastly different underwriting guidelines and pricing structures. A condition that makes you uninsurable with one company might be perfectly acceptable to another.

I also encourage people to think beyond just the premium amount. Consider the financial strength of the insurance company, their customer service reputation, and the specific terms of the policy. The cheapest option isn’t always the best if it comes with restrictions or limitations that don’t fit your situation.

The Application Process and What to Expect

The application process for final expense insurance is generally straightforward, but knowing what to expect can help ensure smooth approval. Most applications can be completed over the phone and take 15-30 minutes, depending on your health history.

You’ll typically be asked about your current medications, recent hospitalizations, and specific health conditions. The key is answering these questions accurately and completely. I’ve seen too many cases where people tried to minimize their conditions only to face delays or declined applications when the truth came out during underwriting.

Some carriers offer immediate approval for straightforward cases, while others may require a brief waiting period for underwriting review. Occasionally, they might request medical records from your doctor, though this is less common with final expense policies than traditional life insurance.

Once approved, coverage typically begins immediately, and you’ll receive your policy documents within a few weeks. Most carriers offer automatic bank draft for premium payments, which helps ensure your coverage remains in force.

Related Reading

• Understanding Final Expense Insurance
• Graded Benefit Whole Life Insurance: Your Complete Guide
• Burial Insurance for Seniors Over 70: Your Complete Guide
• Burial Insurance for Seniors Over 80: Your Complete Guide

Ready to explore your final expense coverage options? Contact me today and let’s review what makes sense for your specific situation and health status.