BEST FINAL EXPENSE COMPANIES
Written by Natalie Cooper
Licensed Agent, Best Quote Insurance President
Last updated June 10, 2022
The Best Final Expense Life Insurance or Burial Plan Insurance is the policy that gives you the highest level of whole life insurance the lowest rate. That’s it. Any company in the A or B A.M. Best categories are a financially stable reputable companies. After the collapse of the market in 2008, companies were re-evaluated and are looked at much more stringently.
What is Final Expense or Burial Insurance?
Final Expense Insurance is a small Whole Life insurance policy… Some companies call them funeral insurance, life insurance, or burial insurance. They all mean the exact same thing. Every company calls it something different but they all provide the exact same thing—Money paid to your named beneficiary when you die.
These whole life policies are guaranteed to last for as long as you live. Your rates will never go up, your benefits will never go down, and you cannot be canceled unless you don’t pay your premiums. They provide fast cash that can be used for anything your beneficiary chooses. Most people buy these policies to pay for their end of life “Final Expenses” like funerals or as a gift to a family member.
You choose the amount of death benefit to be paid to your beneficiary. You can split the death benefit if you want it to go to more than one person. The average death benefit is anywhere from $10,000 to $25,000. Your needs may be different, and some companies offer as much as $50,000 and as little as $2,000.
Death Benefits paid to your beneficiary are tax free!
DON’T BUY TERM INSURANCE
All term policies either go up in price every so often years, they end and you run the risk of living through it leaving you with nothing! There is absolutely no reason in today’s day in age to buy term policies for final expenses. Don’t get hooked by that low price which will likely go up so high you’ll have to let it go and definitely don’t try and estimate how long you’ll live. Unfortunately a crystal ball is not your best way to figure out how long you’ll live.
SHOULD YOU BUY A PREPAID FUNERAL?
NEVER… under any circumstances. You could end up with no where to bury you, no funeral, no money to get back and absolutely no legal recourse. Time and again there are news stories about the cemeteries and funeral homes that went out of business, or they cashed in the life insurance policy that the customer gave them the legal right to do without realizing it. If you make payments to a funeral home there is no guarantee or law that protects you.
Just recently we talked with daughter of “Beatrice” from Columbus Ohio. Her mother is now 85 years old and has Alzheimer’s disease. While trying to get her mother’s affairs in order for when the time comes that she passes away, they found out that instead of buying all life insurance, her mother purchased a “prepaid funeral” and luckily had a very old separate $7,000 insurance policy. Her mother didn’t understand that when she did this, the funeral home purchased an insurance policy on her making themselves the beneficiary and the owner. The “owner” of a policy has the right to make any changes including the right to cash in the policy which is exactly what that funeral home did. Now the only thing left is the $7,000 life insurance policy that she fortunately bought separately, and nothing from the funeral home.
How to choose the Best Final Expense Insurance
Do not automatically apply for a Guaranteed Issue (no health questions asked) policy. We are all familiar with Colonial Penn, and Globe Life because of all the television ads and mail solicitations. Most of the time you will pay more for those policies than if you use an independent agent. Even if you think you’re not healthy enough to pass some questions, you should always consult with an independent agent. They’ll review your health to determine which companies you will qualify for.
- United of Omaha
- Prosperity Life
- Bankers Fidelity Life
- Baltimore Life
- Royal Neighbors
- United Home Life
- Gerber Life
The first thing you need to know is how you can pay the premiums. There are only a few companies that will allow you to companies. We recommend using Transamerica if you want to use a credit or debit card. You don’t pay extra and Transamerica is one of the most respected life insurance companies in the industry.
We know many people are frustrated, confused and have been sorely disappointed in the past trying to a policy. Let our independent agent do the leg work and get you the best possible policy and price. It’s worth a 10 minute conversation to find out what and how much you can get.
Each company is also backed by the state department of insurance it is being sold in, and or re-insured by another company. Yes, believe it or not some companies actually purchase insurance from a re-insurance company to cover excessive losses.
This is generally used to cover burial or cremation expenses or other end of life debts, and is issued in amounts of $2,000 to $100,000. Most people purchase between $10,000 and $25,000 but you should buy what you can afford. It’s better to leave something than nothing to your family.
These policies have simplified underwriting, no medical exams, no medical records and are very easy to get even if you have a serious illness. In fact, there are many companies that also offer GUARANTEED ISSUE life insurance policies with no health questions. One of your first decisions is to determine how much life insurance you should apply for.
Most importantly DON’T WAIT TO BUY IT! Every day you live takes you one day closer to the day you’ll die. You just don’t know when that will be, and with each new day brings a higher expectation of developing another illness or having accident that will just make your premiums higher. Once you purchase a burial or final expense whole life insurance, it’s locked in forever and nothing will ever change. Buy it as young and as healthy as possible.
ESTIMATE THE COST BEFORT YOU PURCHASE A FINAL EXPENSE PLAN
You’ll find that most funerals cost between $7,000 and $15,000 plus burial fees that generally run from $500 to $2000. A floral spray can cost upwards of $400.
The average cost of a burial funeral is easily about $8,000 not including the plot, opening and closing, the marker or headstone and obituary. If your wish is cremation, the average is about $4000 at it simplest. Shipping a body from one state to another costs even more.
Remember to take into account inflation. So if you are 55 years old today, you should consider purchasing about 2 times the average cost in today’s prices.
According to the latest statistics from the National Funeral Directors Association the cost for cremations and burials has increased almost 14% in the last 5 years. Below are quick reference charts published by the NFDA for the median costs in 2021.
Why you shouldn’t you go right to the well -known big names that spend millions on advertising?
You can get:
1. Lower rates
2. Better policy benefits during the first 2 years
3. A higher death benefit for the same price or less
Give us a call at 614-402-5160 five minutes to evaluate your situation we’ll and give you the BEST QUOTE.