Frequently Asked Questions (FAQs) about final expense and term life insurance.
Final Expense Insurance FAQs
What is final expense insurance?
Final expense insurance, also known as burial insurance or funeral insurance, is guaranteed money available to your family to help pay for your funeral expenses. This money can be used to cover the cost of home services, preparation fees, burial or cremation, headstones, plots, flowers, wreaths and more.
How much does final expense insurance cost?
Final Expense or burial insurance plans often start at less than $5/week* and are more affordable than traditional life insurance. Your premium will depend on the amount of coverage you want as well as your health. And unlike some types of insurance, your premium never increases.
Do I need to have a medical exam to buy final expense insurance?
You do not need a medical exam to purchase some types of final expense insurance. In fact, burial insurance is a smart choice for those with a pre-existing health condition or serious illness as it’s easier to qualify for than traditional life insurance.
In some cases, you may need to complete a health questionnaire, but this is to help you decide the amount and cost of your burial insurance.
Do final expense insurance premiums change over the years?
No. Your insurance premium remains the same regardless of your age or changes in your health. Premiums are based on the coverage you choose.
Who needs final expense insurance?
Anyone who wants to ease the financial burden for their loved ones in the event of a passing should consider final expense insurance. It’s the final gift that you can leave to the most important people in your life. Burial insurance is also a great choice for aging or ill individuals.
How much final expense insurance do I need?
How much insurance you need depends on how much financial security you want to provide your family. The average funeral costs around $10,000, but can easily cost more. We can help you estimate the amount of coverage you need to ensure you don’t pass on final expenses to those you care about most.
How do I buy final expense insurance?
The first step to buying final expense insurance is to get a free, unbiased quote. Answer a few short questions online to quickly find out how much burial insurance you may need and which burial insurance companies can offer you the best rates.
Do my beneficiaries have to use my final expense insurance to pay for my funeral?
No. Your beneficiaries can use your coverage to ease the burden of bills as well as your final expenses. Be sure to talk with your beneficiaries about the intent of your burial insurance.
Term Life Insurance FAQs
What is term life insurance?
Term life insurance is one of the most common types of life insurance, as it’s an easy way to protect your family’s financial security if something were to happen to you. Term length options typically range from 10 years to 30 years, but our licensed insurance agents can make sure you find coverage that fits both your needs and budget.
What does term life insurance cover?
Term life insurance typically covers the cost of end-of-life expenses in addition to any expenses your family might still be expected to pay once you’re gone, including the mortgage, utilities, college tuition, outstanding debts, etc.
How much does traditional life insurance cost?
The cost of life insurance depends on the amount of financial security you want to leave to your beneficiaries. Life insurance can help replace income, cover mortgage payments or a child’s tuition, so it’s important to consider all of your expenses when determining coverage.
Do I have to take a medical exam to get a term life insurance policy?
Most insurance companies require a brief medical exam to obtain term life insurance. However, the exam is at no cost to you and takes place at your home or office when it‘s convenient for you—it usually takes less than 20 minutes. If a medical exam is a concern to you, there are options for coverage that don’t require an exam. Learn more about no medical exam life insurance.
How long does it take to get a term life insurance policy?
Typically, it takes 4-7 weeks after your application is submitted to get the policy in your hands.
How much traditional life insurance do I need?
Since traditional life insurance replaces lost income if something happens to you, the proceeds from your policy should be enough to cover immediate expenses as well as to provide continuous income for your beneficiaries.
Most financial planners recommend coverage 10 times your annual income. Since individual needs vary, though, we recommend that you speak to one of our licensed insurance agents to determine what might be the right option for you.
What is the death benefit?
If you pass away while your life insurance policy is still active, your beneficiaries will receive a tax-free lump sum called the death benefit, which can be paid out all at once or over the course of their lifetime.
General Life Insurance FAQs
What’s the difference between final expense insurance and traditional life insurance?
Life insurance is a great way to provide for your family and loved ones following your passing. While beneficiaries can use life insurance to pay for your final expenses, life insurance is often used to replace future income, cover children’s education expenses or pay off debt. Burial insurance is a type of life insurance but typically costs less and does not require a medical exam.
What is a beneficiary?
A beneficiary is the trusted individual or individuals who you choose to manage your final expense benefit after your death. Your beneficiary can be a family member, a friend or someone you depend on.
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* Best's Credit Ratings™ are under continuous review and subject to change and/or affirmation. For the latest Best’s Credit Ratings™ and Best’s Credit Reports (which include Best’s Credit Ratings™), visit the A.M. Best website at ambest.com. See Guide to Best’s Credit Ratings™ for explanation of use and charges.” “Best's Credit Ratings™ reproduced herein appear under license from A.M. Best and do not constitute, either expressly or impliedly, an endorsement of SelectQuote or its recommendations, formulas, criteria or comparisons to any other ratings, rating scales or rating organizations which are published or referenced herein. A.M. Best is not responsible for transcription errors made in presenting Best's Credit Ratings™. Best’s Credit Ratings™ are proprietary and may not be reproduced or distributed without the express written permission of A.M. Best Company.” A Best’s Financial Strength Rating opinion addresses the relative ability of an insurer to meet its ongoing insurance obligations. It is not a warranty of a company’s financial strength and ability to meet its obligations to policyholders. View our Important Notice: Best's Credit Ratings for a disclaimer notice and complete details at http://www.ambest.com/home/ratings.aspx
*$5/week example policy is for female age 45, $7k policy which is $240,96 annually or $21.45 for a monthly premium. This policy is a United of Omaha: living Promise WL and is a non-participating whole life insurance to age 100, policy form ICC12L080P, underwritten by Omaha Life Insurance Company, Omaha, NE 68175. The premium is guaranteed to age 100. Minimum issue amount is $2000, maximum issue amount is $40,000 for the level benefit policy and $20,000 for the graded benefit policy. Premiums include a $36 annual policy fee. For the graded benefit policy, if the insured dies due to natural causes in the first or second policy year, the death benefit will be 110% of the premiums paid. In the third policy year or later, the full death benefit will be paid for death due to all causes Forms and plan provisions may vary by state. Plan not available in all states. Suicide and other limits may apply. Rates effective as of 1/2020. SelectQuote Insurance Services, SelectQuote Insurance Agency. ©2020 SelectQuote Insurance Services. All rights reserved.
AIG Companies policies issued by American General Life Insurance Company (AGL). Issuing company AGL is responsible for financial obligations of insurance products and is a member of American International Group, Inc. (AIG).