8 Final Expense Insurance Facts

Insurance, as a whole, gives people the peace of mind that when the unexpected happens they can be financially protected. And while most insurance companies deal with “what ifs”, final expense insurance is designed to cover the inevitable costs that come with funerals. 

As a final expense insurance agent, it’s your duty to pair clients who want to purchase final expense insurance with the best policy for their needs. Keeping up to date with the latest final expense insurance news and facts can help you better connect with your clients.

Read on for the final expense insurance facts you need to know, some of them may just surprise you.

Here are some final expense insurance facts you should know as a final expense insurance agent. 

You likely know that final expense life insurance goes by a few different names. Investopedia explains that it’s a whole life insurance policy with a small death benefit. It’s often called burial insurance, funeral insurance, or simplified issue whole life insurance.

As a final expense insurance agent, you may need to explain these different titles. However, they all can help cover burial costs and funeral costs in addition to easing the financial burden associated with passing on.

One of the final expense insurance advantages your clients will want to know about is that this coverage is easy to qualify for. When it comes to insurance, many types of coverage have strict waiting periods and ask detailed medical questions to determine eligibility. 

But final expense insurance is designed for older adults. To qualify, individuals only need to answer a few questions about their medical history and any health issues. While the exact application requirements differ by carrier, this coverage is, in general, easy to qualify for, does not require a medical exam, and can be enacted quickly.

Your clients will appreciate knowing that final expense insurance is fairly flexible. For instance, policyholders can choose who can use the death benefit and for which purposes. Also, it can cover more than simply funeral expenses.

While most individuals associate this insurance with covering burial costs, it can often be used to cover other life expenses that occur during a death. Another of the final expense insurance benefits is that it can include covering medical bills or credit card debts loved ones face after someone passes away.

Next time you have a client ask if final expense insurance is worth it, you can present them with these facts:

• A 2021 study from the National Funeral Directors Association shows the median cost of an adult funeral with viewing and burial is $7,848, up 6.6% from 2016.
• The median cost of a funeral with cremation has increased 11.3% over the past five years to $6,970.
• A comprehensive survey found that 73% of Americans are likely to die with debt. Of this number, 68% of the deceased had outstanding credit card debt, 37% had unpaid mortgages, 25% had unpaid car loans.

Like with many insurance policies, age is an important factor when purchasing final expense insurance. Though it depends on the carrier, many individuals can get this type of coverage until they turn 85 (80 is another common maximum age). 

The older the applicant, the higher the premium they would have to pay. Some places may have a minimum age to apply (typically 45), while others do not. Most commonly, individuals purchase this coverage after they retire and are no longer covered by work-provided insurance.

Another of the important final expense insurance benefits is that it’s relatively affordable. That’s because the coverage amount is typically low and the policy may build a cash value over time. Additionally, the premium never changes which can help your clients better budget their monthly expenses.

The affordability is often a draw and can make finding a policy within your client’s budget much easier.

There will always be a need for final expense insurance, especially with today’s aging population. According to Business Wire the Global Final Expense Insurance Market size was estimated at USD 138.91 billion in 2022, and is projected to grow at a Compound Annual Growth Rate (CAGR) of 7.01% to reach USD 195.31 billion by 2027.

With baby boomers continuing to age into retirement at a rapid pace, there’s never been a better time to enter the final expense insurance industry.

The final expense industry is also large. There are dozens and dozens of different carriers that offer these types of policies. However, it’s your job to determine which is the best fit for your clients.

Remember that there’s no one-size-fits-all final expense insurance policy. It’s important to have a diversified portfolio and understand your policies inside and out. This way, you can present your clients with a selection of the best plans that fit their needs and their budget.

Finally, we can’t forget to mention this fun and helpful final expense insurance fact: technology exists to help improve the way you sell!

At Best Plan Pro, our software doesn’t tell you how to sell, but adapts to the way you want to sell to streamline your sales process. As a final insurance agent, you know there are many moving parts to selling policies. From underwriting pre qualifications to organizing and managing a client’s health profile, these administrative tasks can be time consuming. 

Best Plan Pro automates generic research, processing medication guides, underwriting guides, height & weight guides, and pricing calculations. So you can focus on what matters the most: connecting your clients with the best policy for them.

Learn more about Best Plan Pro and other final expense insurance facts today.