The costs of end-of-life arrangements have steadily increased, and for many families, the burden of funeral expenses can be overwhelming. Planning for these costs with final expense insurance is a practical solution, ensuring that your loved ones are not left with a significant financial burden during an already difficult time.
In this guide, we’ll explore the top final expense insurance companies of 2024. We’ll cover everything you need to know—from the policy options and benefits of each company to how to select the best plan for your specific needs.
What’s Final Expense Insurance?
Final expense insurance, often referred to as burial insurance, is a type of life insurance specifically designed to cover expenses associated with a person’s passing. This includes funeral services, burial or cremation, and sometimes lingering medical bills.
Unlike traditional life insurance, which often provides large payouts designed for income replacement, final expense insurance focuses on smaller, more manageable coverage amounts ranging from $5,000 to $50,000.
It’s ideal for those who want a straightforward policy to cover specific costs without the complexities of larger life insurance policies. Typically, final expense insurance is whole life insurance, which means it remains in effect for the insured’s entire life as long as premiums are paid.
Additionally, these policies often build a cash value, offering a modest financial cushion if needed.
Why You Might Need Final Expense Insurance?
Planning for your end-of-life expenses might seem daunting, but it’s a critical part of financial planning, especially for those who want to spare their families from unexpected costs.
The average funeral in the United States can range from $7,000 to $12,000, depending on factors like location, service type, and burial choices. Without a dedicated policy, these costs can fall on your loved ones, causing additional stress during a time of grief.
Final expense insurance provides a way to prepare for these costs. By securing a small whole-life policy, you ensure that your family has the funds to cover your burial or cremation without dipping into their savings. It’s a simple, effective way to provide peace of mind for both you and your family.
How to Choose the Right Final Expense Insurance Company?
When selecting a final expense insurance policy, it’s important to look beyond the surface and consider several key factors. Here’s what you should keep in mind as you evaluate your options:
- Coverage Amounts: The amount of coverage you need depends on your anticipated final expenses. Think about the costs of your preferred funeral arrangements, any medical bills, and small debts. Many policies range from $5,000 to $50,000, so assess your needs and choose a plan that aligns with your budget.
- Policy Types: Final expense insurance typically comes in two forms: simplified issue and guaranteed issue. Simplified issue policies require answering a few health questions but no medical exams. These policies often offer better rates for those in relatively good health. Guaranteed issue policies, on the other hand, require no health questions or exams, making them accessible to everyone, but they tend to come with higher premiums due to the risk insurers assume.
- Premium Rates and Stability: Premium rates vary based on age, health status, and the type of policy you choose. It’s essential to understand that premiums for final expense insurance remain fixed for the life of the policy. This makes it easier to budget for the long term, but comparing rates from different providers is key to finding the most cost-effective option.
- Financial Stability of the Company: A company’s financial strength indicates its ability to pay out claims reliably. Check ratings from agencies like A.M. Best, which evaluate an insurer’s financial health. Companies with strong ratings are more likely to provide the peace of mind that your policy will be there when your family needs it.
The Top Final Expense Insurance Companies
With numerous providers on the market, it can be difficult to know where to start. Here’s an in-depth look at the top final expense insurance companies for 2024, each offering unique benefits to meet your needs.
1. Mutual of Omaha
Mutual of Omaha is a trusted name in the insurance industry, offering final expense policies that are popular for their competitive rates and reliable service. Their policies provide coverage up to $40,000, making them suitable for a range of needs.
With simplified underwriting, most people can get approved without a medical exam. Mutual of Omaha is known for its excellent customer service and straightforward claims process, ensuring that your loved ones can access funds quickly when the time comes.
2. AIG
AIG’s guaranteed issue final expense insurance makes it a top choice for individuals who may not qualify for other plans due to health issues. AIG offers coverage for applicants between the ages of 50 and 85, and while premiums are slightly higher, the peace of mind knowing you’re covered is invaluable.
The policy includes a graded death benefit for the first two years, which pays a portion of the benefit if the policyholder passes away during that time. It’s ideal for those looking for no-questions-asked coverage.
3. Transamerica
Transamerica offers both simplified and guaranteed issue final expense policies, catering to a variety of needs. They provide coverage amounts up to $50,000, which is higher than many competitors, making it suitable for those looking for more comprehensive protection.
Transamerica’s financial stability and strong ratings ensure your policy remains secure over the years. Their application process is easy, and many policies can be issued without medical exams, making it a great option for seniors.
4. Foresters Financial
Foresters Financial brings a unique community-focused approach to final expense insurance, offering benefits that go beyond typical coverage. Their final expense policies include options for additional member benefits like legal services and financial counseling.
This makes Foresters Financial a good choice for those seeking not just an insurance policy but a holistic financial planning partner. Coverage amounts vary, allowing flexibility for your specific needs.
5. State Farm
State Farm is a well-known and highly rated insurance provider, offering a simple approach to final expense insurance. Their policy options include coverage amounts up to $10,000, designed specifically to cover burial and minor end-of-life expenses.
State Farm is particularly known for its personalized service, helping clients through every step of the process. This attention to customer care, combined with strong financial ratings, makes it a reliable choice.
6. Gerber Life
Gerber Life’s guaranteed issue policies are ideal for seniors between 50 and 80 who might struggle to qualify for other coverage due to health conditions.
Coverage amounts range from $5,000 to $25,000, making it a suitable option for those who want a small, straightforward policy. While premiums are higher than some competitors, the lack of medical questions makes it accessible for everyone, ensuring no one is turned away.
7. Colonial Penn
Colonial Penn is known for its affordability, with starting rates that attract many budget-conscious buyers. Their guaranteed acceptance policies are designed for those aged 50 to 85, offering a simple way to get coverage without medical exams.
While the coverage amounts are modest, usually maxing out at $20,000, they are well-suited to cover most final expenses. It’s a great option if you’re looking for basic, affordable coverage with straightforward terms.
8. Liberty Bankers Life
Liberty Bankers Life offers a range of final expense insurance options, including simplified issues and modified plans for those with more complex health needs.
Their application process is easy, and they are known for competitive rates and a commitment to customer service. With coverage up to $30,000, they provide a flexible option for those looking to ensure that end-of-life expenses are covered without hassle.
9. Americo
Americo is a solid choice if you’re looking for quick coverage, as they are known for their fast approval process. With most applications processed in just a few days, Americo provides peace of mind quickly.
Their policies include simplified issue options, meaning that no medical exam is needed, and they offer coverage amounts from $2,000 to $30,000, making it suitable for a wide range of final expense needs.
10. Fidelity Life
Fidelity Life is known for educating its customers about their options, making it an excellent choice if you prefer to make informed decisions. They offer a variety of final expense insurance options, including immediate and graded benefits.
Coverage amounts go up to $35,000, providing enough flexibility to cover funeral costs and small debts. Fidelity Life’s transparency and strong focus on customer satisfaction make them a standout option in this market.
11. United Home Life
United Home Life provides straightforward, no-exam final expense policies that appeal to those who want a quick and simple application process. Coverage ranges from $5,000 to $25,000, which is sufficient for most basic funeral and burial expenses.
The company prides itself on making insurance accessible to all, even those who may have struggled to get coverage due to health issues.
12. Assurity
Assurity has a reputation for providing clear, affordable final expense options, including a simplified issue whole-life policy. This company focuses on transparency, helping clients understand what they’re paying for and what benefits they can expect.
Assurity’s competitive rates and the availability of coverage without a medical exam make it an appealing option for seniors who want straightforward protection.
13. Sentinel Security Life
Sentinel Security Life rounds out our list with its strong customer service and flexible policy options. Their final expense policies offer coverage up to $35,000, providing a balance between affordability and substantial coverage.
With a solid track record in the industry, Sentinel Security Life is known for its prompt claims processing and commitment to customer care, making it a reliable choice for final expense insurance.
How to Apply for Final Expense Insurance?
Applying for a final expense insurance policy is simpler than you might think. Begin by choosing a company and policy that aligns with your coverage needs and budget. Most providers offer the option to apply online, though working with an agent can also provide valuable guidance.
For simplified issue policies, you’ll answer a few basic health questions—no medical exam is required. Guaranteed issue policies, designed for those with serious health conditions, skip the health questions entirely, making the process even quicker.
Once your application is submitted, approval often comes within days, and your policy goes into effect immediately after approval. Make sure you understand the payment terms for your premiums—whether they’re monthly, quarterly, or annually—and keep your policy documents in a safe place where your beneficiaries can easily access them.
Conclusion
Finding the right final expense insurance is about more than just price. It’s about choosing a policy that fits your needs and provides peace of mind to you and your loved ones.
The companies highlighted in this guide represent the best of the market in 2024, offering various options to suit different needs and budgets. Whether you prioritize affordability, simplicity, or a company with a strong reputation, there’s a plan that’s right for you.
Take your time to review the options, request quotes, and secure a policy that ensures your final expenses are covered, giving your family one less thing to worry about.
