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The median cost of a funeral is $7,848.1 This doesn’t include other end-of-life costs, such as medical bills or travel to attend the funeral. Fortunately, seniors can ease the burden on their loved ones by applying for a final expense insurance policy. That way, loved ones can grieve without the extra worry about financial matters. This article will explain what final expense insurance is, its benefits and costs, and what it helps cover so you decide if this type of policy is right for you.
Final expense insurance for seniors is a whole life insurance policy designed to help cover end-of-life expenses. Since this type of policy doesn’t require a medical exam, it’s usually easier to qualify for than other life insurance policies. The death benefit is smaller, but premiums tend to be low. Aflac offers final expense insurance plans with death benefits ranging from different amounts, allowing you to pick the coverage level you need.
Don’t wait until it’s too late. Help cover yourself and your family with coverage from Aflac.
Final expense insurance can help loved ones pay for many end-of-life expenses, such as:
The amount of expenses your loved ones could help cover may depend on the amount of coverage you get.
Final expense insurance for seniors can cost less than larger permanent life insurance policies. According to Forbes, an 80-year-old man can purchase $10,000 in final expense coverage for an average of $197 per month. An 80-year-old woman will spend an average of $158 per month on the same coverage.2 Your premiums can vary based on factors such as age, lifestyle, and coverage amount.
Here are a few benefits and drawbacks of final expense insurance for seniors:
One of final expense insurance’s primary benefits is that it can help ease the financial burden end-of-life costs place on your loved ones. Your family can worry less about handling funeral costs or medical bills out of pocket while they grieve.
Final expense insurance premiums don’t change once you get your policy.3 This lets you lock in lower premiums if you purchase the policy earlier, helping you save money as you age.
Final expense insurance for seniors is typically easier to qualify for than other life insurance policy types. This is because this policy usually doesn’t require a medical exam. Instead, you must only fill out a short application with a few medical questions. As a result, you can often receive approval within a few days instead of a few weeks.
Final expense insurance typically has a smaller death benefit than traditional life insurance policies. Death benefits often range from $5,000 to $25,000, depending on the life insurance company and coverage amount.2 This means your beneficiaries will receive less money when you pass away. This death benefit may not be enough to help with loss of income, pay off all debts, or save for other long-term goals.
Final expense insurance policies can cost more than some other life insurance policies.3 However, they tend to offer enough coverage to help pay for most final costs and don’t require a medical exam. This can make the cost appealing.
Final expense insurance may work well if you want to help make sure your own end-of-life expenses do not place financial stress on your loved ones. You can get coverage that lets beneficiaries receive enough of a payout to help cover many of these costs at a rate that fits your budget. A final expense plan can be especially helpful if your family may need help paying end-of-life costs and you want a less expensive policy with a smaller death benefit.
Final expense insurance can help provide peace of mind for seniors and their beneficiaries by helping loved ones pay for final expenses. Plus, lower premiums and simplified underwriting make these policies good options for those who need more reasonable coverage quickly. If you think this policy type is right for you, talk with an Aflac agent today to learn more about our final expense insurance plans.
1 National Funeral Directors Association – Statistics. https://nfda.org/news/statistics. Accessed May 10, 2023.
2 Forbes – Is Burial Insurance Right for You? Updated February 6, 2023. https://www.forbes.com/advisor/life-insurance/burial-insurance/. Accessed May 10, 2023.
3 Investopedia – Final Expense Insurance: What it is, Who Needs it, Pros and Cons. Updated August 20, 2022. https://www.investopedia.com/final-expense-insurance-4801018#toc-pros-and-cons-of-final-expense-insurance. Accessed May 10, 2023.
Coverage is underwritten by American Family Life Assurance Company of Columbus. In New York, coverage is underwritten by American Family Life Assurance Company of New York.
68000 series: In Arkansas, Idaho, Oklahoma, Oregon, Pennsylvania, Texas, & Virginia, Policies: ICC1368100, ICC1368200, ICC1368300, ICC1368400. In Delaware, Policies A68100-A68400. In New York, NY68100-NY68400.65000 series: In Virginia, Policies ICC0965JTO & ICC0965JWO. B61000 series: In Arkansas, Idaho, Oklahoma, Oregon, Pennsylvania, Texas, & Virginia, Policies: ICC18B61JWO & ICC18B61JTO. In Delaware, Policies B61JWO, B61JTO. B60000 series: In Arkansas, Idaho, Oklahoma, Pennsylvania, Texas, & Virginia, Policies: ICC18B60C10, ICC18B60100, ICC18B60200, ICC18B60300, & ICC18B60400. Q60000 series: Whole: In Arkansas, Delaware & Oregon, Policy Q60100M. In Idaho Policy Q60100MID. In Oklahoma, Policy Q60100MOK. In Texas, Policy Q60100MTX.Q60000 series: Term: In Delaware, Policies Q60200CM. In Arkansas, Idaho, Oklahoma, Oregon, Texas, Policies ICC18Q60200C, ICC18Q60300C, ICC18Q60400C.
Final Expense insurance coverage is underwritten by Tier One Insurance Company.
The life insurance policy described herein contains an optional Accelerated Death Benefits Rider that is intended for favorable tax treatment under Section 101(g) of the Internal Revenue Code. Aflac does not give legal or tax advice. Please consult with a qualified legal, tax, and accounting advisor before engaging in any transaction. In AR, AZ, ID, OK, OR, PA, TX and VA: Policies ICC21-AFLLBL21 and ICC21-AFLRPL21; and Riders ICC21-AFLABR22, ICC21-AFLADB22, and ICC21-AFLCDR22. Tier One Insurance Company is part of the Aflac family of insurers. In California, Tier One Insurance Company does business as Tier One Life Insurance Company (Tier One NAIC 92908).
This is a brief product overview only. Coverage may not be available in all states, including but not limited to DE, ID, NJ, NM, NY or VA. Benefits/premium rates may vary based on state and plan levels. Optional riders may be available at an additional cost. Policies and riders may also contain a waiting period. Refer to the exact policy and rider forms for benefit details, definitions, limitations and exclusions. For complete details, including availability and costs, please contact your local Aflac agent.
Aflac does not offer Universal or Variable Universal life insurance.
Content within this article is provided for general informational purposes and is not provided as tax, legal, health, or financial advice for any person or for any specific situation. Employers, employees, and other individuals should contact their own advisers about their situations. For complete details, including availability and costs of Aflac insurance, please contact your local Aflac agent.
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