As you get older, responsibilities like providing for young children or paying off a mortgage become a thing of the past. But you still have financial commitments to protect – and you have options to do it.

According to the Federal Reserve Bank of New York, debt for people over 70 has increased by 543%, or to $1.1 trillion, within the past 20 years. Similarly, those in their 60s saw debt, like mortgages and auto loan payments, balloon by 471% to $2.4 trillion in that same time. With auto loans, credit card bills, or even college tuition still in the picture for many seniors, it’s crucial to plan ahead to make sure your family is protected financially.

Final expense insurance offers a safety net to help your family cover end-of-life costs like funeral expenses – or outstanding financial obligations like medical bills, credit card debt and auto loans. Of course, the beneficiary you choose can use the money for anything. But how does final expense insurance compare with traditional life insurance policies? Here’s how the two stack up.

What’s the difference between life insurance and burial insurance?

Traditional life insurance provides financial support to your family members or other beneficiaries if you die. It comes in two major types: term and permanent.

Term plans offer flexible protection for up to 30 years at affordable rates. Permanent plans guarantee lifelong protection, and they also include a cash value component that you can access during your lifetime. People typically buy life insurance in the prime of life to help their families fill financial gaps in case they die unexpectedly, like replacing income, covering daily expenses, or saving for the future.

Final expense insurance, also known as “burial insurance,” has one main purpose: to cover funeral and end-of-life costs. The average funeral can cost $10,000 or more. Final expense eliminates the need to cover these expenses out-of-pocket or add financial stress at a time when your family is already grieving.

With no strings attached, your family can also use a final expense payout to cover debts or provide a legacy to your kids or grandkids. As a type of permanent insurance, final expense plans last a lifetime, so your family can rest easy that the money will be there when they need it.

Should I choose life insurance or final expense insurance?

The right life insurance choice for you will depend on a few factors, like:

Your Age

Traditional life insurance is generally easier to buy and more affordable during your prime earning years. Final expense was created specifically for seniors, however, so you can qualify for a policy well into your 80s.

At Fidelity Life, we’re committed to giving seniors as many coverage options as possible. Our Senior Life Term plan is available for seniors up to 70 years old, or you can qualify for our Senior Whole Life and Final Expense policies until age 85.

Your Financial Responsibilities

If you still have large expenses, like a mortgage or dependent relatives, life insurance is a better option if you’re able to qualify. Fidelity Life offers policies with coverage rates up to $150,000 for Senior Life Term and Senior Whole Life.

Final expense policies tend to have lower coverage amounts, since they’re designed to meet end-of-life needs. At Fidelity Life, you can qualify for final expense coverage up to $40,000.

Your Health

In general, final expense is typically easier to qualify for than traditional life insurance, making it a good option if you have health issues. Final expense policies from Fidelity Life come in two types:

• Simplified issue life insurance relies on a health questionnaire instead of a medical exam for approval. At Fidelity Life, you can qualify for up to $35,000 in coverage through our simplified issue plans.
• Guaranteed issue life insurance offers no-questions-asked coverage, with no health information required. If you’re concerned that your health could prevent you from being eligible for any life insurance, consider applying for guaranteed issue insurance instead. You can apply for up to $25,000 in guaranteed issue coverage with Fidelity Life.

Still in good health and need a bigger coverage amount? A term or permanent plan may be a better bet. At Fidelity Life, our senior term and permanent life insurance plans don’t require a medical exam as long as you’re relatively healthy, so you can get covered right away.

Buying a final expense policy

Final expense insurance, also known as funeral insurance,  can offer peace of mind later in life, allowing you to spend your final years enjoying time with family instead of worrying about saddling them with debt. Before starting your application, think about the sendoff you want and other expenses your family may need to cover after you’re gone. Adding up these expenses, including any kind of funeral expense, can help you determine the right amount of coverage.

It’s important to pick a beneficiary for your policy as well. While most people choose loved ones and family members, you can also name your funeral home to ensure those final wishes are covered.

Still have questions about final expense insurance?

Our team is here to help. Get in touch with one of our agents or start your online quote today.

At Fidelity Life, our goal is to make life insurance simple, affordable, and understandable for everyday families. This content is intended for educational purposes only. Each post is carefully fact-checked, reviewed, and updated regularly to ensure the information is as relevant as possible.