Mark LuigiApplying for final expense insurance is much simpler than most people expect — especially compared to traditional life insurance. There’s no medical exam, no lengthy waiting, and many policies can be approved within days. Here’s exactly what to expect and how to give yourself the best chance of approval.
Step 1: Figure Out How Much Coverage You Need
Before you start comparing policies, take a few minutes to estimate the costs your family would face. Consider:
- Funeral and burial or cremation: Costs vary widely by region and preferences, but budgeting $7,000–$12,000 is a reasonable starting point for traditional burial. Cremation with a memorial service typically runs $3,000–$7,000.
- Outstanding medical bills: If you’re managing a chronic condition, consider what co-pays and final medical expenses might look like.
- Small debts: Credit card balances, personal loans, or utility arrears that you wouldn’t want to pass on.
- Legal and estate costs: Attorney fees, probate filings, or other administrative expenses.
Most seniors find that $10,000–$15,000 covers their needs well. Some choose up to $25,000 to give their family additional flexibility.
Step 2: Decide Between Simplified and Guaranteed Issue
If your health is reasonably managed — even with one or two chronic conditions — try simplified issue first. These policies are less expensive and often provide immediate full coverage. Guaranteed issue policies (no health questions) are better suited for those with serious health conditions who can’t qualify otherwise. See our companion article on this topic for a full breakdown.
Step 3: Shop Multiple Companies
Final expense premiums can vary by 15–25% for identical coverage across different insurers. Don’t accept the first quote you receive. The most effective way to compare is to work with an independent insurance agent or broker who has contracts with multiple companies — they can run several quotes simultaneously and show you the best options for your specific situation.
When evaluating companies, also look at:
- Financial strength ratings: Look for carriers rated A or better by AM Best, which measures the company’s ability to pay claims.
- Customer reviews: Look for patterns in how claims are handled and how responsive customer service is.
- Waiting period terms: Clarify whether coverage is immediate or subject to a graded benefit period.
Step 4: Complete the Application
The application for final expense insurance is straightforward. You’ll typically need:
- Your full legal name, date of birth, and address
- Your Social Security number
- Your beneficiary’s name, relationship, and date of birth
- Answers to health questions (for simplified issue policies)
- Payment information for your first premium
Answer all health questions honestly and completely. Misrepresenting your health history — even unintentionally — can result in a claim being denied later. If you’re unsure how to answer a question, ask your agent for guidance.
Step 5: Review Your Policy When It Arrives
Once approved, your policy documents will arrive by mail. Read them carefully and confirm:
- The coverage amount matches what you applied for
- Your beneficiary is correctly listed
- Premium amounts and payment schedule are as expected
- There are no waiting periods you weren’t told about
Most states allow a “free look” period of 10–30 days during which you can cancel for a full refund if anything isn’t right.
Step 6: Tell Your Beneficiary
Make sure the person you’ve named as beneficiary knows the policy exists, where to find the documents, and how to contact the insurance company. Keeping a simple folder with your policy number, insurer’s phone number, and claim instructions can save your family significant stress during an already difficult time.
Pro tip: Keep your policy information somewhere easy to find — a dedicated folder in a filing cabinet or alongside your other important documents. Let a trusted family member or friend know where it is.
Have questions about senior benefits and planning? Visit Smarter Senior Living — we search so you don’t have to.
