Final expenses can create an unexpected financial burden for surviving family members. Funeral services, burial or cremation costs, medical bills, unpaid debts, and other household obligations can quickly add up.
Burial insurance, also commonly called final expense insurance or funeral insurance, is generally a smaller permanent life insurance policy designed to provide money to your beneficiary after your death.
At Mintco Financial, we help Mississippi residents compare life insurance options from multiple insurance companies. Coverage availability, premiums, health questions, and benefit amounts vary by carrier, so it is important to compare several policies before making a decision.
What Is Final Expense Insurance?
Final expense insurance is typically a whole life insurance policy with a smaller death benefit than traditional life insurance. Many policies are designed for adults and seniors who want to leave money that may help their family manage expenses after death.
The beneficiary generally decides how to use the death benefit. It may be used for:
- Funeral-home services
- Burial or cremation expenses
- Cemetery costs
- Medical bills
- Credit-card balances
- Household expenses
- Travel expenses for family members
- Other financial obligations
Is Burial Insurance the Same as Funeral Insurance?
The terms burial insurance, funeral insurance, and final expense insurance are often used to describe similar types of smaller life insurance policies. However, they should not be confused with a prepaid funeral contract purchased directly from a funeral provider.
With a life insurance policy, the death benefit is generally paid to the beneficiary listed on the policy. With a prepaid funeral arrangement, money may be assigned to specific funeral services or merchandise.
Important Question to Ask
Is the product a life insurance policy that pays a beneficiary, or is it a prepaid funeral agreement tied to a specific funeral provider? Make sure you understand what you are purchasing.
Who May Consider Burial Insurance?
Final expense insurance may be considered by people who do not have enough savings available to cover funeral costs or who do not want family members to use their own money.
It may also be considered by someone who:
- Does not currently have life insurance
- Has an older policy that is no longer sufficient
- Wants to leave a modest benefit to family
- Has health conditions that may limit other coverage options
- Wants permanent coverage rather than temporary term insurance
- Wants premiums that are designed to remain level under the policy terms
Can Mississippi Seniors Qualify With Health Conditions?
Many applicants with common medical conditions may still have coverage options. Eligibility depends on the insurance company, age, medications, health history, and the type of policy selected.
Health conditions that may be reviewed include:
- Diabetes
- High blood pressure
- Heart disease
- Cancer history
- COPD or other lung conditions
- Kidney disease
- Stroke history
- Mobility limitations
- Prescription medication use
Some policies ask several health questions. Others may use simplified underwriting. Guaranteed-issue policies may be available to certain applicants, but they often include lower coverage limits, higher premiums, or a graded death benefit during an initial period.
How Much Burial Insurance Do You Need?
There is no single coverage amount that is right for everyone. Estimate the costs you want the policy to help cover and subtract money already available from savings, existing life insurance, prepaid arrangements, or other assets.
Consider:
- Funeral or cremation preferences
- Cemetery and memorial costs
- Outstanding debts
- Medical expenses
- Money you want to leave to children or grandchildren
- Monthly premiums you can comfortably maintain
Buying more coverage than you can comfortably afford may create a risk that the policy will lapse later. Choose a premium that fits your long-term budget.
What Affects the Price?
Final expense insurance premiums may be affected by:
- Age
- Gender
- Tobacco or nicotine use
- Health history
- Prescription medications
- Coverage amount
- Type of policy
- Insurance company underwriting guidelines
Two applicants of the same age may receive very different rates because of tobacco use, health history, medications, and coverage choices.
Questions to Ask Before Buying
- Is the policy whole life insurance?
- Will the premium remain level?
- Does the death benefit remain level?
- Is there a graded or limited benefit period?
- Are there health questions?
- How long does underwriting normally take?
- What happens if I stop paying premiums?
- Who receives the death benefit?
- Can I change the beneficiary later?
- Is the insurance company financially rated?
Why Compare Multiple Insurance Companies?
Insurance companies do not all evaluate applicants the same way. One company may offer a better rate for a person with diabetes, while another may be more competitive for someone using certain medications or applying at an older age.
Comparing several companies may help you identify:
- Lower monthly premiums
- More suitable health-question guidelines
- Higher available coverage amounts
- Immediate coverage instead of a graded benefit, when eligible
- Different age limits
- Policy features that better match your needs
Serving Mississippi Families
Mintco Financial helps clients compare life insurance options throughout Mississippi, including Jackson, Gulfport, Biloxi, Hattiesburg, Southaven, Tupelo, Madison, Ridgeland, Brandon, Meridian, Oxford, Starkville, Olive Branch, and surrounding communities.
Important disclosure: This article is provided for general educational purposes and is not an offer or guarantee of insurance coverage. Eligibility, premiums, policy benefits, waiting periods, health questions, and availability vary by applicant, insurance company, product, and state. Only the issuing insurance company can approve coverage and determine the final premium. Review the policy contract carefully before purchasing.