Final expense insurance provides peace of mind for older adults and their families by covering end-of-life expenses without the need for a medical exam.
End-of-life insurance is also known as funeral insurance. If you purchase an end-of-life insurance policy, it’s typically with the expectation that the beneficiaries will use the payout to cover expenses related to your funeral and burial after death.
Fidelity Life offers end-of-life insurance to customers wishing to provide their beneficiaries with funds to cover funeral and burial expenses. These plans:
The flexibility of Fidelity Life end-of-life insurance policies means your beneficiaries won’t lose out on the coverage you paid for, even if they decide to use the funds for something other than funeral or burial expenses. For example, if your family chooses to donate in your name with the funds, they can do so.
Like most people, you’re probably familiar with term life insurance and what it covers. Typically, term life insurance benefits are larger as they’re intended to take care of a family following a death that would result in significant loss of income and financial stability.
Even if you’re leaving behind a large estate along with life insurance benefits, end-of-life insurance is helpful because benefits are often paid out more quickly, so they can be used to pay for funeral expenses and burial costs. Larger life insurance payouts may be delayed depending on the circumstances of the death and other factors, and it may be challenging for your loved ones to access your estate funds right away. Having a final expense insurance policy may shorten the time for claims review, especially if you purchased a guaranteed issues policy, and can help your loved ones cover costs without worrying about probate and other delays.
This peace of mind is a key benefit of final expense insurance. Final expense insurance is a smaller benefit intended to cover funeral and burial expenses, and any other end-of-life expenses. There are two types of final expense insurance – simplified issue final expense insurance and guaranteed issue final expense insurance.
There’s no medical exam required to qualify for simplified issue final expense insurance. The application does include some health questions, and if you’re in reasonably good health you’ll have good odds of being approved for a policy. The benefit amount for a Fidelity Life simplified issue policy can go up to $40,000 while still offering affordable premiums. Most people purchase these with the intention that beneficiaries will use the payout to pay for end-of-life costs like burial expenses and a funeral service.
Some people may not meet the health or age criteria for simplified issue final expense insurance. If this describes you, then guaranteed final expense insurance may be an ideal choice. Guaranteed issue final expense insurance doesn’t take health into account when approving coverage, only age. Anyone who meets the age criteria will generally be approved for a policy, and coverage amounts with Fidelity Life can max out at $25,000.
Typically, payouts for end-of-life insurance are disbursed quickly, in the days following your death. Beneficiaries will receive a lump sum payment of the benefit and are then free to use the funds however they see fit. You can also assign a funeral home as the beneficiary, and the funds will then be applied to cover the costs of burial and funeral expenses. To choose this option, your chosen funeral home must be aware and agree to be a beneficiary.
You might be concerned about other financial costs your loved ones may incur. The good news is, they can use the lump sum benefit to cover any unexpected bills, debts, or anything that helps make their lives easier during this challenging time.
End-of-life planning is critical for anyone who wishes to make the days and weeks after their death easier for their loved ones. If you have ever dealt with settling an estate without a will to guide you, you will know firsthand some of the challenges that can crop up when it comes to accessing funds. Even with a will, estates can take considerable time to settle and are often only settled well after the funeral. If you’re unsure it’s time for you to get final expense insurance, check out the criteria below to see if it matches your current life situation.
While end-of-life insurance policies are a great benefit, those whose children or other loved ones depend on their income should also explore plans with larger payouts, like term life or permanent life insurance. These policies aim to replace potential lost earnings for many years and will help your beneficiaries retain assets and move forward after their loss.
There are a range of affordable Fidelity Life products to choose from based on your situation and financial responsibilities.
For many people, age 50 is when they really start thinking about making an end-of-life plan. If you’re considering end-of-life insurance to cover your final expenses, there are a few things you can do to make applying go as smoothly as possible.
Since there is no medical exam to qualify, the application process for your final expense plan will not take long. You can obtain coverage very quickly, and it will be active immediately.
Once you’ve selected your plan, you will make regular premium payments to maintain your policy. These payments will last the remainder of your life if you choose to keep your policy active. Fidelity Life offers guaranteed rates for final expense level premiums, so your payments will not increase over time. This is beneficial as your income or earning potential may change during your lifetime. Regular on-time payments will help with building up the cash value of your policy, which in turn can be available to borrow in case of emergency adding to the living benefits (or value) of your policy
Having a final expense plan isn’t beneficial unless your loved ones are aware they should be receiving a payout. Make sure to tell your loved ones like your spouse or other relatives about the policy. Include details like the policy name, the payment method, and the insurance company it is with so your family will be able to obtain the payout when it’s time. If a funeral home is the beneficiary, make sure your family is aware. It’s a good idea to keep the physical copy of your policy with other important end of life documents.
There are many benefits to purchasing funeral or final expense insurance. Some of the benefits of end-of-life insurance include:
While final expense insurance is a great benefit for your loved ones, the benefit amount is relatively small in comparison to other types of insurance policies. If you’re concerned about your loved ones having enough to cover expenses after your death, you may want to speak to an experienced agent to discuss alternative insurance plans to account for these future needs. Specifically, you can select a term life insurance plan or other whole life insurance plans. Each has their benefits and you can select the option that best suits your needs.
As the name implies, it’s a type of life insurance that is intended to last for a set term of your life, from 10 to 30 years. It’s simple and affordable, and it allows you to choose how long you wish to stay covered. One of the benefits of term life insurance is higher amounts of coverage. If you do pass away during the coverage period, your family will receive these benefits to help recover from the loss of your income and put towards other unexpected expenses that may arise. Since term life insurance is only active for a limited term of your choosing, you’ll usually have to purchase another policy (often at a higher rate). With Fidelity Life’s RAPIDecision® Senior Life Term policy, you can apply up to age 70 and purchase up to $150,000 of coverage.
Simplified issue is also generally the most affordable type of final expense insurance and offers higher coverage amounts than other no-exam policies.
Unlike term life insurance, whole life insurance offers protection as long as you live, if you pay your premiums. Like final expense policies, whole life insurance policies also offer a savings feature called cash value, which grows over time. You can use this cash value to borrow from for expenses while still living. For adults concerned about potential expenses incurred by their loved ones after death, whole life insurance could be a better option as it will offer a larger payout. Fidelity Life RAPIDecision® Senior Whole Life offers permanent coverage for seniors between 50 and 85 and coverage amounts up to $150,000
While these terms are often used interchangeably, burial insurance is different as it only covers burial, while final expense insurance covers burial and funeral costs, or anything the beneficiaries choose. Fidelity Life’s final expense policies pay out funds without restrictions, so they can be used for any expense, not just funeral or burial. When purchasing, make sure your insurance policy covers all the costs you are looking to cover, not just burial.
If you’re in good health, it’s not likely you will be approved for funeral insurance or final expense policy unless you’re between the ages of 50 and 85.
Final expense insurance does not have any restrictions. Your beneficiaries can use it to cover a headstone and burial plot if they choose. You should be sure to tell your loved ones about your policy and what you would like for your end-of-life celebration.
This is a personal decision with many factors. You should wait until you are at least 50 before purchasing a policy, otherwise you may not be approved. Additionally, consider your personal health, medical history, and the longevity of your relatives when determining to purchase. Of course, your own income must come into consideration too. Consider how long you can afford to pay for a policy, and how much.
Fidelity Life end-of-life insurance policies do not have any restrictions. Your relatives can use it for any expenses they see fit or save it for future use for things like education.
Your family should contact Fidelity Life regarding receiving their benefit. If your named beneficiary is a funeral home, the funeral home should contact Fidelity Life.
Final expense insurance offers peace of mind and ensures your loved ones can celebrate your life without financial stress. It can cover your funeral or burial expenses or serve as a nest egg for your beneficiaries to use how they choose.
There is no set waiting period. Typically, final expense benefits are paid out quickly.
Fidelity Life final expense plans offer benefits up to $40,000.
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