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Pros and Cons of Final Expense Insurance

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.

How final expense insurance works

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.

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What expenses can final expense insurance cover?

Your beneficiaries will be able to apply the death benefit from final expense insurance to a variety of costs, such as:

  • Funeral and burial costs
  • Medical bills
  • Legal fees
  • Hospice care
  • Everyday bills

Benefits of final expense insurance

The most notable advantages of final expense insurance include:

Pricing

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.

No medical exam

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

Fixed premiums

With final expense insurance, premiums are locked in once you get approved.3 They’ll never increase as long as your policy remains active.

Beneficiaries can use the death benefit for any expenses

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

Drawbacks of final expense insurance

Here’s a look at the disadvantages of final expense insurance:

Lower payout

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.

Some policies have waiting periods

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.

Can cost more than other policies

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.

How to decide if final expense insurance is right for me

Before you commit to a final expense insurance policy, consider these factors:

Your coverage needs

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.

Your budget

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.

Your health

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.

Get a quote for Aflac 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.

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