Final expense insurance can help your loved ones cover end-of-life expenses upon your passing. This type of policy often comes with a smaller death benefit and no medical exam, which can make it easier to get coverage. But before you move forward with a final expense policy, it’s a good idea to consider its pros and cons. Keep reading to learn about the advantages and disadvantages of final expense life insurance so you can make an informed decision for yourself and your family.
Also known as burial insurance, final expense insurance is a permanent policy designed to pay for end-of-life expenses. As long as you pay your premiums, loved ones will receive a death benefit when you pass away. While it won’t be as large as the payout they might collect if they had a traditional term life or whole life policy, it should be enough to help cover final expenses, like burial costs and medical bills.1 Aflac offers final expense insurance with affordable rates.
Don’t wait until it’s too late. Help cover yourself and your family with affordable coverage from Aflac.
Your beneficiaries will be able to apply the death benefit from final expense insurance to a variety of costs, such as:
The most notable advantages of final expense insurance include:
Final expense insurance is usually less expensive than other types of policies due to its smaller death benefit.2 Factors like your age, health, and coverage amount will determine what you pay.
While many life insurance products require a medical exam, final expense insurance does not. When applying for final expense insurance, all you have to do is answer several questions about your health.2
With final expense insurance, premiums are locked in once you get approved.3 They’ll never increase as long as your policy remains active.
Final expense insurance is flexible. Your beneficiaries can use the death benefit payout to help cover virtually any cost, like your funeral, medical bills, or even day-to-day expenses.2
Here’s a look at the disadvantages of final expense insurance:
In many cases, payouts for final expense insurance range from $2,000 to $35,000.2 If you’re looking for a higher coverage amount, you may need to consider alternative options.
Depending on the insurer, your policy might have a waiting period. This means that a certain amount of time must pass before benefits are paid out.
If you’re older and not in the best health, you may notice higher premiums for final expense insurance. You might be able to find more affordable coverage with another type of policy.
Before you commit to a final expense insurance policy, consider these factors:
Are you simply looking to cover your funeral and burial expenses? Do you hope to leave your loved ones with some money to pay for end-of-life costs? If so, final expense insurance is likely a good fit.
You should also determine how much you can afford to pay for a life insurance policy. If you’d like sufficient coverage without breaking the bank, final expense insurance may be worthwhile.
If you’re not in great health, you may want to skip the medical exam to get life insurance coverage. In this case, it may be smart to consider final expense insurance.
Final expense insurance can be a great way to help protect your loved ones with a small payout upon your death. They can use the funds to pay for any final costs and other expenses while they grieve.
Aflac offers final expense insurance at reasonable rates. You can get approved quickly and enjoy lifetime coverage. Plus, you may customize your coverage with several riders. Discuss your options with an Aflac agent and get a quote today.
Explore your life insurance options.
1 Forbes – Average Cost of Life Insurance in May 2023. Updated May 17, 2023. https://www.forbes.com/advisor/life-insurance/how-much-is-life-insurance/. Accessed May 18, 2023.
2 Policygenius – What Happens If You Outlive Your Term Life Insurance? Updated February 23, 2023. https://www.policygenius.com/life-insurance/outlive-life-insurance/. Accessed May 18, 2023.
3 Investopedia – What Happens If You Outlive Your Term Life Insurance Policy? Updated May 28, 2022. https://www.investopedia.com/what-happens-if-you-outlive-your-term-life-insurance-policy-5076607. Accessed May 18, 2023.
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.
Life (A68000 Series) - In Arkansas, Idaho, Oklahoma, Oregon, Pennsylvania, Texas, & Virginia, Policies: ICC1368100, ICC1368200, ICC1368300, ICC1368400. In Delaware, Policies A68100-A68400. In New York, NY68100-NY68400. Term and Whole Life (B60000 Series) - In Arkansas, Idaho, Oklahoma, Pennsylvania, Texas, & Virginia, Policies: ICC18B60C10, ICC18B60100, ICC18B60200, ICC18B60300, & ICC18B60400. Group Whole Life (Q60000 Series) - In Arkansas, Delaware & Oregon, Policy Q60100M. In Idaho Policy Q60100MID. In Oklahoma, Policy Q60100MOK. In Texas, Policy Q60100MTX. Group Term Life (Q60000 Series) - In Delaware, Policies Q60200M. In Arkansas, Idaho, Oklahoma, Oregon & Texas, Policies ICC18Q60200M, ICC18Q60300C, ICC18Q60400C.
Aflac 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.
Tier One Coverage
Life (Final Expense Life) - In Arkansas, Delaware, Idaho, Oklahoma, Oregon, Pennsylvania, Texas, & Virginia, Policies ICC21-AFLLBL21 and ICC21-AFLRPL21; and Riders ICC21-AFLABR22, ICC21-AFLADB22, and ICC21-AFLCDR22.
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.
Aflac’s family of insurers include Aflac, Aflac New York, Continental American Insurance Company, and Tier One Insurance Company.
Aflac WWHQ | Tier One Insurance Company | 1932 Wynnton Road | Columbus, GA 31999.
Aflac New York | 22 Corporate Woods Boulevard, Suite 2 | Albany, NY 12211