Updated: Apr 10
There have been many articles written in regards to WHICH insurance carrier is the best— not everyone agrees, so, which Final Expense life insurance company really is the best? The answer to that question below may surprise you!
In this article, we'll give you the proper answer to that question and much more. Continue reading or click a link below to jump to the section that interests you most.
What Is a Final Expense Policy Exactly?
A Final Expense insurance policy, also known as Burial Insurance, is a smaller no-exam life insurance plan that is designed to provide a quick cash payout (usually within 48 hours) to your beneficiary, so they have the money needed to pay for end-of-life expenses. These expenses typically are burial costs, any debts, funeral procession, memorial services, cremations, etc.
Final Expense policies are easier to get approved for than traditional Term or Whole Life policies and are considered "Simplified Issue" meaning the applicant doesn't have to undergo a medical exam to be approved for the plan.
What Types Of Insurance Programs Are Available?
There are typically three (3) main policy types offered by any given insurance carrier:
Level (or Preferred) Benefit: The lowest-cost option with coverage that begins immediately.
Graded (or Modified) Benefit: This option has higher premiums than a Level Benefit AND a delayed payout during the first 2-3 years, depending on the insurance carrier.
Guaranteed Issue (GI) benefit: The highest-priced option that comes with a 1-2 year waiting period on the benefit payout, depending on the insurance carrier.
Graded and Guaranteed Issue (GI) plans cost more than a Level plan and comes with a waiting period. The length of the waiting period depends on your health conditions and they company you're applying to, but a 1-2 year wait is the most common duration.
Medical exams are not required, and even serious health issues won't prevent you from getting a policy. The beauty of these types of programs is that nobody can be denied a policy. The benefit amounts usually range from $2,000 - $40,000.
And The Best Insurance Carrier Out There Is...!
The #1 Final Expense insurance company is... the one that BEST fits YOU and YOUR needs!
That's right, with insurance companies (insurers) there are NO one-size-fits-all companies.
People often rate insurance companies in terms of pricing and/or their underwriting (risk assessment) guidelines, but the company that is lowest for one individual may not be the lowest option for another!
Consider this scenario:
Mrs. Jones wants a $10,000 burial policy for herself so that her daughter (her beneficiary) doesn't have to come out of pocket to pay for her end-of-life expenses. She is 66 years old, lives in Iowa, and has COPD (Chronic Obstructive Pulmonary Disorder).
Her neighbor, Mrs. Sanchez, also 66 years old, doesn't have any health conditions.
Will they pay the same cost or monthly premium? No, they will not! As of this writing (Dec. 2020) for a $10,000 policy Mrs. Jones will pay $52.48 a month (MUTUAL OF OMAHA), and Mrs. Sanchez will pay $40.79 a month with (LIFESHIELD NATIONAL INSURANCE CO.)
These figures come from out of nearly 3 dozen insurance carriers, and currently represent the lowest costs available. Their pricing is dependent on their age and their health conditions and both determine the policy type and the cost (monthly premium) they qualify for.
So, the best company is the one that will give you the best rate depending on your age and your particular health conditions!
Now, it is true that some companies have higher credit ratings (see A.M. Best Ratings), and some companies have been around longer than others, which lends to their creditability, but insurance companies don't price their policies based on these factors.
How do you know if an insurance carrier is right for you?
When applying for an insurance policy, here are five (5) key factors you want to ensure your policy does for you:
Your monthly rates are locked in for life.
The policy is guaranteed never to expire.
The benefit amount is guaranteed to never decrease.
The policy builds cash value (you can potentially borrow from in an emergency).
Policy comes with an *Accelerated Death Benefit Rider (usually added free-of-charge).
An *Accelerated Death Benefit Rider is also called a Living Benefit. It's money that can be withdrawn from your insurance benefit that can used in cases where the insured has been diagnosed with Chronic, Critical, or Terminal Illnesses, depending on the carrier.
What Makes A Good Final Expense Life Insurance Company?
A good Final Expense life insurance company is one that you can rely on that is financially stable and offers competitively priced products. When shopping for a policy, you'll also want to look for those that offer an immediate decision, so you don't have to wait around days or even weeks to learn if you've been accepted or not.
Ultimately, a good Final Expense life insurance company is one that offers YOU the best price, and they are a company with longevity and are financially stable which lends to their credibility to be there to protect your loved ones when you're no longer around.
Each life insurance company will offer you a different premium based on your age and health condition, and it's important to look at as many companies as possible!
How Can AffinityQuotes Assist You?
If you're looking for a life insurance policy, AffinityQuotes will help determine if you need a Level, Graded, or Guaranteed Issue policy and then find the BEST insurance carrier for you.
Here’s why we believe that…
We're an independent agency representing many different insurance carriers. We're not obligated to any one carrier which gives us the freedom to shop the best deal for YOU.
Shopping multiple carriers is important especially if you have a major health concern.
To get the best deal you must look at as many insurance companies as possible to find the one that will give you the best rates for the particular health issues you may have. And having a brokerage firm like AffinityQuotes can help you do that!
AffinityQuotes shops dozens of insurance carriers to find which one(s) will accept you based on your health conditions.
Whatever questions you have, we'll provide the answers to you at no cost.
Call 855-400-7766 to see what a licensed AQ agent can do for you.