Final Expense

Final Expense

January 12, 2022
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What is Final Expense Life Insurance?

 

Final expense insurance is a type of whole life insurance designed to cover medical bills and funeral expenses when you pass. A final expense policy is also known as burial or funeral insurance and is popular with seniors.

Most final expense plans have these features:

  • Whole life insurance – no expiration if premiums are paid
  • Cash value – insured may be able to take out a policy loan
  • Fixed premiums as long as they’re paid
  • Simplified issue – usually no medical exam (also called a life insurance exam) is required, just health questions on the application
  • Easy application process
  • Fast approvals – coverage can often be issued in days
  • Affordable rates
  • Covers Funeral & Cremation Services

Policy loans and withdrawals reduce the policy’s cash value and death benefit and may result in a taxable event. Withdrawals up to the basis paid into the contract and loans thereafter will not create an immediate taxable event, but substantial tax ramifications could result upon contract lapse or surrender. Surrender charges may reduce the policy's cash value in early years.