The average cost of a funeral with a viewing and burial was $7,640 in 2019. If the cemetery requires a vault, the average cost jumps to $9,135. These prices do not include costs for the cemetery, headstone, flowers, obituary, or other miscellaneous expenses. One thing many people confuse is the difference between prepaid funerals and final expense insurance.

The main difference is that your funeral insurance allows you to select a beneficiary. That person is able to use the funds for funeral expenses or other estate debt.

When you purchase a prepaid funeral, you are selecting your funeral home and planning all details. You pay for your funeral in advance. The downfall is if the funeral home goes out of business prior to your death, funds may be lost.

Final expense life insurance does not carry that risk. To learn more about its benefits and whether or not you need it, keep reading.

What Is Final Expense Insurance?

Sometimes referred to as burial insurance, final expense life insurance for seniors is a whole life insurance policy with a small death benefit. Because of the lower benefit amount, it is easier to receive approval.

The smaller policy makes it more affordable to purchase. Death benefits for final expense insurance generally run between $2,000 to $50,000.

The best final expense insurance allows the beneficiary to use the payout as necessary. The funds can pay for the memorial service, purchasing a casket, paying the funeral home, covering outstanding debts of the deceased, and more.

Benefits of Final Expense Insurance for Seniors

Seniors are prone to more health care concerns. This can result in denials or higher premium costs for standard life insurance. The benefit of final expense insurance policies is how easy they are to get.

• Policies are available to seniors in poor health
• There is no medical exam, only a questionnaire and prescription history
• Policy premiums never increase
• The insurer cannot decrease the death benefit unless you borrow against the cash value
• A beneficiary can use the benefit for any purpose
• The death benefit is guaranteed as long as premiums are kept current
• The death benefit is not taxable

When purchasing standard life insurance you will normally need to undergo a medical exam. The insurance company is seeking verification of the medical information you provided on your application.

They will take an in-depth look at the medical history of you and your family members to determine life expectancy. They are also looking for underlying medical conditions you may not be aware of. They will also consider your use of drugs, alcohol, or nicotine.

All of these factors will affect your ability to purchase insurance and the amount of the premium. You eliminate this invasion of your privacy when you elect to purchase final expense life insurance.

Get a Burial Insurance Quote Today

If you are concerned about your loved one’s ability to pay for your funeral expenses after your death, now is the perfect time to contact USA Life Insurance Services for a quote. We provide you with a personalized final expense insurance plan that meets your needs and budget.

We invite you to learn more about burial insurance and request a quote online from USA Life Insurance Services today.