Aetna Final Expense Life Insurance

Aetna Final Expense Life Insurance is part of the CVS family of insurance companies.  Aetna offers life insurance through two different companies, Continental Life and Accendo.  They’re both Aetna policies, but each company has distinctive pricing and health questions.

They are one of the Best Final Expense Insurance (burial insurance) companies because of their dedication to their policyholders, financial stability, competitive rates, and underwriting guidelines. It is one of five companies that you can buy life insurance from if you’re between the ages of 86 and 89.   The age limit to buy an Aetna burial policy is 89 years old.

Aetna doesn’t sell policies directly to consumers.  You can only purchase a policy through a licensed insurance that’s approved to offer Aetna products.

Does Aetna Cover Funeral Costs?

It can cover all sorts of expenses, including funeral costs.  When someone dies, there are a lot of different expenses, not just the funeral.  Your loved ones must also pay your unpaid debt, like car loans and credit cards.  Remember that family members may incur travel expenses and need to pay for a hotel and cover meals.  You may want to consider if you will help your family pay for those things when you buy a policy.

Calculating the actual cost of a funeral can include the cost of a casket, embalming, pick up of the body, the service, and many other services you may not have considered.  The single most costly part of a funeral is the casket.

At What Age Should You Buy Final Expense Insurance?

Buying a Final Expense life insurance policy between the ages of 40 and 60 is best.  It depends on your financial situation.  If you don’t have the cash funds set aside to pay for everything when you die, then you need a burial policy, no matter how old you are.  The younger you are, the cheaper it is.

The best way to cover funeral expenses is with life insurance.  You’ll pay a small monthly amount for the coverage, and no matter when you die, the money will be paid to your beneficiary.

What Does Burial Insurance Cost?

The cost of any life insurance policy depends on your age and your health.  The average price of final expense insurance is between $50 and $100 a month.  A $25,000 death benefit costs more than a $10,000 benefit, and a 55 year old pays less than a 75 year old for the same coverage.  The chart below can give you an idea of what an Aetna Final Expense plan will cost.

Monthly Premiums For A $10,000 Immediate Level Death Benefit

Rates shown above are based on non-tobacco applicants

How Good Is Aetna Life Insurance?

Aetna  Final Expense coverage.  They offer 2 different affiliate programs: The Accendo CVS Series and Protection Series.  The coverage on all the Aetna plans is excellent, and the price is very competitive.  You can compare policy differences in the chart below to help determine which plan is best for you.

Aetna Final Expense Life plans are whole life insurance policies guaranteed to age 121.  Whole Life means the premiums will never increase, and the death benefit will never decrease for as long as you have the coverage.  By nature, all whole life policies build cash value.

What Is The Cash Value In A Burial Policy?

The cash value, The surrender value is sometimes called the amount of money available for withdrawal or loan.  Cash value builds over time.  The longer you have the policy, the higher the amount.

If your policy has built cash value over time, you can withdraw or take a loan against the funds.  Usually, a small amount of interest is applied, but if you need to pay a medical bill, want funds for the holidays, or need a little extra, the money is ultimately yours.

If you took a loan against the policy and haven’t paid that money back, the amount you owe will reduce the death benefit paid to your beneficiary.  Your beneficiary gets the death benefit when you die.  They don’t get the cash value and the death benefit.

To clarify, the cash value belongs to the “Owner” of the policy, which may differ from the “Insured.”  If you’re the child who will pay the premiums for your parent’s policy, you’ll likely want to be named as the beneficiary and the owner.

We highly discourage clients from using their burial or final expense plans as savings accounts.  Be very cautious.  The only reason we recommend using the cash value is to pay your monthly premiums in the event you have no other source of funds.   But the money is yours, so it’s up to you.  Remember that the reason you bought the policy.  It was probably meant to pay for funeral and end-of-life expenses, so leave enough to do just that.

Is Burial Insurance Worth It?

Making sure your loved ones don’t incur the stress of trying to come up with the money to pay for your funeral and burial makes it all worthwhile.  However, you’ll probably fall short if you need to cover the mortgage payment or generate an income for your family.  Burial insurance provides small cash to pay for one-time expenses quickly when you die.  It’s not meant to be for ongoing expenses like income replacement. 

Do I Need Burial Insurance If I Have Life Insurance?

You may still need a final expense policy if you have term life insurance.  Term life insurance is meant to last for a specific number of years or until a certain age.  If you outlive a term life insurance policy, and your mortgage and other debts are paid off, that’s great!  But your family will still need the money to cover your funeral and burial, and now you don’t have any more life insurance.  Social Security only provides a $225 death benefit, so if you don’t have $10,000 to $20,000 set aside in cash, you may want to consider having both.

What To Do If You Can’t Pay Your Life Insurance Premiums

You always have the right to “Surrender” the policy.  The insurance company will send you a check for the total cash value accumulating less loans or interest.  If you do this, your policy ends, you’ll have no further obligation to pay premiums, and they have no obligation to provide any more coverage.

If you want the money to keep some life insurance in force, you can request the funds be used to continue your life insurance in three different ways.  These are called “Non-Forfeiture Options”. Aetna will give you all three options at no additional charge.

Automatic Premium Loan

You can let the cash value accrued in the policy pay the premiums.  You can select this option when you’re filling out the application.  If your premiums haven’t been paid, Aetna will automatically use the cash value to pay the premiums to keep them from lapsing and will continue until the funds are completely depleted.  Sometimes, a person does not even know their premiums are overdue.  Take, for example, a person who becomes ill and has been in the hospital for two months.  Not everyone has someone else to take over the finances when they can’t do it themselves.

If you don’t pay that money back and then die, the amount you owe will reduce the death benefit paid to your beneficiary. Use this feature wisely and only for emergencies.   Be careful if you buy a small whole life policy in your later years and plan on using it as a savings.  It takes a long time to build a good amount of cash value. This strategy is usually used when buying whole life on children or large amounts of whole life insurance at a young age intended for income or estate planning in the future.

Reduced Paid-Up Insurance

Aetna will essentially take the cash in your policy and use the lump sum to purchase smaller death benefits.  You will have that policy forever and never have to pay another premium.

Extended Term Insurance

This means your death benefit stays the same, but the policy will only last for a specified time.