Final Expense Insurance
Final Expense Insurance is also commonly referred to as Final Expense Life Insurance or Senior Life Insurance
Final Expense Insurance, also known as Final Expense Life Insurance or Senior Life Insurance, can help protect your family against the growing costs associated with funeral expenses, burials, and final interment.
According to the National Funeral Directors Association (NFDA), the median cost of a funeral with viewing and burial in 2021 was $7,848, and costs continue to rise each year. From 2019 to 2021, there was a 13% increase to the median funeral cost.
Additional costs, like credit card debt and medical expenses, can also be subsidized through Final Expense Insurance, giving you and your loved ones added peace of mind in the event of your passing.
Is Final Expense Life Insurance Right For You?
Final Expense Life Insurance can provide additional layers of financial protection to families of seniors, retired individuals, or individuals with underlying or chronic health conditions. Persons between the ages of 50 and 80 are guaranteed coverage with no medical exams or health questions, with rates that cannot be increased during the duration of coverage, provided premiums are consistently paid.
The best way to ensure the policy amount paid is spent where intended is to name a beneficiary (and, in some cases, a secondary and tertiary beneficiary) or to place your wishes in a surviving will and testament. It is often a good practice to notify primary beneficiaries of their expected duties once a Final Expense Insurance policy is obtained.
Guaranteed Issue Whole Life Insurance for Final Expenses
Guaranteed Issue Whole Life is a form of Final Expense Life Insurance and Senior Life Insurance through AIG Direct that provides $5,000 to $25,000 in coverage for a fixed rate. It was designed to meet the needs of senior adults ages 50 to 80. Premiums start at $21 per month* for a $5,000 coverage policy (premiums will vary based on issue age, gender, and coverage amount). Additionally, rates and premiums are guaranteed not to increase. No medical examination and no health questions are required, and consumers are guaranteed coverage through automatic qualification.
*Rate based on a female, age 50, with $5,000 in coverage.
Living benefits are also included at no extra cost, including coverages for chronic or terminal illnesses. Benefits include:
- Chronic Illness — If two of the six daily living activities (bathing, continence, dressing, eating, toileting, or transferring) cannot be performed by the insured, or the insured is impaired by a severe cognitive degenerative disease such as Alzheimer's or dementia, the benefit status will be activated, and all premiums paid will be returned.
- Terminal Illness — If the covered party has a certified illness or condition that is estimated to result in death within 24 months, the benefit provides 50% of the applicable death allowance at the time of acceleration.
For more information on Living Benefits, click here.
Coverage under Guaranteed Issue Whole Life insurance can typically be finalized within 48 hours of initial application. Begin an application and purchase a policy on our Guaranteed Issue Whole Life insurance DIY page, or call 800-586-3022 to speak with a licensed life insurance agent today.
Ultimately, the decision on which life insurance policy is best for you and your family is up to you. Below you will find some frequently asked questions should you choose to apply for Final Expense Life Insurance on your own. AIG Direct licensed life insurance agents are standing by to answer any additional questions you might have regarding the protection of your loved ones in the event of your passing.
Frequently Asked Questions About Final Expense Insurance
Can I Buy Final Expense Insurance for My Parents?
Yes, you can buy final expense life insurance for your parents, but you’ll need to meet certain criteria in order to purchase life insurance for someone else. You’ll not only need the permission of the person you are buying a policy for, but you also may need to demonstrate that you will be financially impacted by the death of your parent(s). Financial impacts could include :
- Funeral services or cremation costs
- Debts you co-signed with your parents
- Financial obligations as a result of an inheritance, like a home and mortgage inherited after the death of your parent
- Costs associated with caring for your surviving parent
Our qualified AIG agents can work with you to determine if you qualify to take out a policy on your parent(s) and what proof you will need to provide. To discuss taking out a life insurance policy on someone else, call 800-294-4544.
What Are the Age Restrictions for Guaranteed Issue Whole Life Insurance Through AIG Direct?
AIG Direct offers Guaranteed Issue Whole Life insurance to consumers between the ages of 50 and 80.
What Can the Benefits of My Final Expense Insurance Policy Be Applied To?
Payout benefits from AIG Direct Guaranteed Issue Whole Life insurance can be applied to any post mortem debts but are typically used for funeral expenses, burials or cremations, and end of life medical expenses and outstanding debts.
How Are Final Expense Insurance Policies Different than Term Life?
Term Life policies are built to provide a source of income to subsidize the income lost in the event of the policy holder's passing, whereas Final Expense Insurance policies are tailored to cover end-of-life expenses.
Can I Get Final Expense Insurance if I Smoke?
Yes! Tobacco users will be subject to increased premiums but are eligible for the same Final Expense Insurance as non-users.
What if There Are Excess Proceeds from My Policy After My Final Expenses Are Paid?
The primary beneficiary will have full control over the monetary value paid out by your policy. Any excess funds can be used per their wishes.