The Best Final Expense Insurance Companies for 2021 + Rates

The Best Final Expense Insurance Companies

Final Expense Insurance or sometimes referred to as Burial Insurance is a simplified issue whole life policy. Final Expense Insurance is marketed to seniors between the ages of 50-85 years old.

They are designed for consumers who do not need a lot of insurance coverage, usually enough for burial costs or any other remaining debts. Death benefits usually range from $2,500 to $50,000 depending on the company and product used.

What is Final Expense Insurance?

Final Expense Insurance is often bought with the intentions of having money to pay off any remaining liabilities, such as funeral costs, medical bills, remaining mortgage, or any financial debt left.

What is Burial Insurance?

Consumers purchase burial insurance with the intentions that the death benefit be used to pay for funeral expenses. Funeral homes sale these types of policies, which allow you to pre-pay for your funeral expenses.

You can also assign the burial insurance to the funeral home. This allows the death benefit to be paid directly to the funeral home to ensure your burial costs are paid for.

What Does a Funeral Cost?

Depending on where you are located, funerals can vary in what they cost. The average funeral in 2021 is between $8,000- $15,000. Not having money saved for funeral costs or a final expense insurance policy can leave your loved ones in a bind. 

Pros of Final Expense Insurance 

• Permanent Life Insurance
• Cash Value
• Guaranteed Fixed Premiums
• Designed for Seniors
• Simplified Issue
• No Medical Exams
• Approvals are Usually Quick
• Rates are affordable

Cons of Final Expense Insurance

• Low Death Benefit Amounts 
• Limited Coverage Sometimes

Types of Final Expense Life Insurance

Before we get started with our list of the best final expense insurance companies of 2021, lets go over the different types of coverage associated with Final Expense Life Insurance.  

The three types of final expense life insurance are:

• Immediate Death Benefit
• Graded Death Benefit (Also referred to as Modified)
• Guaranteed Issue/Acceptance

Immediate Death Benefit

This type of final expense life insurance is the best policy, but also has the most medical questions. If you qualify, the death benefit is paid in full from day 1 of the policy. The premiums are guaranteed for the life of the policy, while building up cash value.

These final expense policies can be a little harder to qualify for if you have had certain health problems or you don’t meet their height/weight guidelines.

Here are some sample questions for immediate death benefit final expense life insurance. If you answer yes to any of these, then you will want to look at the other types of final expense insurance.

• Are you in the hospital or bedridden?
• Are you in hospice, home healthcare, or a nursing home?
• Do you have any pending surgery or organ transplant
• If you have been diagnosed with any of the following:
  • Dementia
  • Alzheimer’s
  • Down Syndrome
  • Lou Gehrig’s Disease (ALS)
  • Sickle Cell Anemia
  • Cystic Fibrosis
  • Cerebral Palsy
  • AIDS, ARC or HIV
• Have you ever been in a diabetic coma?
• Do you have less than a year to live?

*These are only a sample of the medical questions asked

Graded Death Benefit Whole Life

A graded death benefit policy is a whole life policy that has a waiting period before full benefit is paid. A graded death benefit policy usually pays a modified amount of the benefit the first 2 years of the contract for death caused by illness. After 2 years the full death benefit is paid by most carriers.

If death occurs by accident the first 2 years, the full death benefit is paid out.

In order to qualify for one of these policies you will have to answer a few medical questions. These policies are designed to cover many more health risks than the level death benefit policies, but is not guaranteed issue/acceptance.

Guaranteed Issue Life Insurance

Guaranteed Issue Life Insurance is designed for consumers that cannot qualify for traditional life insurance because of health or lifestyle reasons.  Guaranteed Issue Life insurance asks no health questions and is approved and issued immediately.

Their is a 2 year waiting period for all death cause by illness, but does pay full death benefit if you die from an accident. Your beneficiary does receive premium plus interest if you pass away during the 2 year waiting period.

The premiums are guaranteed but tend to be higher simply because of the risk the insurance carrier is taking, but these policies due build cash value over time.

The Best Final Expense Insurance Companies 

With all the final expense insurance companies to choose from, it can be a difficult process to choose the best that fits your personal situation.

We have all seen the commercials on television offering insurance for as low as $1, like Colonial Penn or Globe Life, or have received offers from AARP  through the mail. With this much information being marketed, it’s easy to get confused.

The good news is we are here to help. We have combined a list of who we believe are the best final expense insurance companies for 2021. The criteria we used to narrow our list down to the best final expense insurance companies is:

• Financial Strength
• Premium Rates
• Customer Service

Foresters Financial PlanRight 

Foresters Financial tops our list for the best final expense insurance companies for 2021. There final expense life insurance plan is called The  PlanRight. The PlanRight offers immediate and graded death benefit coverage depending on your health. 

Face amounts range from $2,000-$35,000 for immediate coverage and $2,000-$20,000 for the graded death benefit plan. As you can see above Foresters is highly rated with A.M. Best which insures they can pay claims when the time comes. 

In order to qualify for The PlanRight immediate coverage,  you will have to answer some health questions. A sample of the health questions are below.

Foresters Life PlanRight Sample Rates

Immediate Coverage

Royal Neighbors of America

Royal Neighbors of America is one of the leading insurance companies in the final expense arena. Royal Neighbors of America was founded in 1895 and boasts an “A” rating with A.M. Best.

Issue ages for Royal Neighbors final expense life insurance product is 50-75 years old. Face amounts range from $7,500-$30,000 with no exam required. You must answer “NO” to all the medical questions to qualify for immediate coverage. The medical questions are:

Royal Neighbors of America does offer a graded death benefit policy with face amounts between $3,000-$10,000. Issue age is between 50-85 years old. The Graded Benefit plan pays 30% of face amount first year, 70% the second year, and 100% 3rd year and beyond.

Royal Neighbors Simplified Issue Life Rates

Immediate Coverage- Non-Tobacco Rates

Transamerica Life Insurance Company

Transamerica Life Insurance Company offers 3 final expense options. They are:

• Immediate Solution
• 10-Pay Solution
• Easy Solution

The Immediate Solution

The Immediate Solution provides a lifetime guaranteed premium, guaranteed cash value accumulation and death protection coverage starting day 1. Consumers with overall good health are good prospects for the Immediate Solution.

Issue ages are from 0-85 with the maximum face amount decreasing the older you are. The Immediate Solution comes with the Accelerated Death Benefit and Nursing Home Benefit Rider at no extra charge.

Transamerica Immediate Solution Rates

Standard Non-Tobacco Rate Class

Liberty Bankers Life

Liberty Bankers Life offers two type of final expense life insurance to its consumers. One is called SIMPL Final Expense which offers immediate coverage. 

Issue ages for the SIMPL Final Expense product is 18-80 years old with death benefits ranging from $3,000-$30,000. The SIMPL final expense product offered by Liberty Bankers Life Insurance Company is a no exam simplified issue whole life policy.

The SIMPL final expense offers 2 rate classes of either preferred or standard. Look below for sample rates.

SIMPL FINAL EXPENSE SAMPLE RATES

Rates are based on Standard Non-Tobacco

For consumers who don’t qualify for the SIMPL final expense product due to pre-existing health conditions, LBL has an alternative called Modified Whole Life or MWL.

This product is a graded death benefit whole life insurance policy which means the death benefit is limited in the first 3 years. You will not receive the death benefit in the first 3 years unless death is by accident.

MODIFIED WHOLE LIFE SAMPLE RATES

Mutual of Omaha

Mutual of Omaha final expense life insurance product is called the Living Promise. MOO’s Living Promise Whole life policy offers a simplified underwriting process with level and graded death benefit options to seniors across the United States.

Issue ages are between 45-85 years old. Face amounts can be a low as $2,000 up to $40,000. Mutual of Omaha’s rates for the Living Promise is why it is considered one of the best final expense insurance companies in 2021. Check below for sample rates:

Sample Rates for Living Promise Whole Life (Level Death Benefit)

Standard Non-Tobacco-Monthly Rates

Top 5 Reasons to Purchase Final Expense Life Insurance

Final Expense Life Insurance might be the coverage you are looking for. Here of the 5 reasons to why you should consider purchasing a final expense policy:

Lifetime Protection-

Final Expense Insurance is a permanent whole life policy with a guaranteed premium and death benefit. They also build up cash value that can be borrowed if a need arises.

Burial Expenses & Debt-

If you plan properly, a final expense policy could be used to pay for burial expenses or debts that remain after you pass away. Having debt pass on to your loved ones can be a financial burden during a time of mourning.

No Medical Exam Required–

The convenience of not having to do a medical exam to qualify for final expense insurance is the feature like by most consumers. No needles, no urine samples or having to answer awkward questions to a stranger.

Qualifying is Easier-

Final Expense Insurance offers 3 types of coverage that provide a solution for all consumers when it comes to life insurance coverage. Whether it’s level, graded, or guaranteed issue coverage, their is no health condition that won’t qualify for one of these options.

Fast Approval-

Since no exam is required and the applications are simplified issue or guaranteed issue, approval is fast. Most approvals happen within a week while it can be as fast as 24 hrs. depending on the carrier and the type of coverage chosen.

How do I get the Best Final Expense Insurance Policy?

That’s an easy answer! We are here to help. The key to finding the best policy is to work with an independent agency like ourselves. We represent the top carriers of final expense insurance and our knowledgeable on which company would be best for your situation.

If you have any questions or would like to explore final expense insurance in more detail, please give us a call or comment below. Thank you for your time and we hope you find this article helpful.