The Five best Final Expense Companies

burial insurance plan is a small life insurance policy. If you don’t want to read this article, request a quote or call us at (281)688-8166 or go online at www.darrell-franklin.com. Burial insurance provides a quick cash payout to your beneficiary(s), so they have the necessary monies to pay for your funeral costs.

Things to consider:

  1. How much is the cost?
  2. Who are the best final expense companies?
  3. Is final expense insurance worth the hassle?
  4. What is the underwriting process?
  5. What are my legal rights as a consumer?

The average funeral costs between $7,000 and $12,000. The cost includes:

  • Viewing and burial.
  • Basic service fees.
  • Transporting remains to a funeral home, a casket.
  • Embalming.
  • Other preparation.

Cost Breakdown of Funeral Services.

ItemCost

Transporting remains to funeral home $350

Embalming $750

AVERAGE FINAL EXPENSE COSTS:

  • Burial plot – $1,000
  • Grave marker – $1,000
  • Headstone – $2,000
  • Grave liner – $500
  • Burial Vault – $1,500
  • Casket – $2,500
  • Hearse – $325
  • Service car/van – $150
  • Cremation fee – $350
  • Urn – $275
  • Basic services fee – $2,100
  • Embalming – $725
  • Preparing the body cosmetically
  • (makeup and hair styling) – $250
  • Facilities and staff for viewing – $425
  • Facilities and staff for funeral
  • ceremony – $500
  • Printed memorial pamphlets – $160
  • Flowers – $600

Five best final expense companies:

  1. Mutual of Omaha
  2. Liberty Bankers Life
  3. Royal Neighbors of America
  4. Foresters
  5. AIG

Mutual of Omaha

  • Company founding date: 1909
  • A.M. Best rating: A+ (superior)
  • Better Business Bureau rating: A+
  • Product name: Living Promise level benefit
  • Policy type: whole life insurance
  • Premiums stay the same forever: yes
  • Policy duration: forever (never expires)
  • Builds cash value: yes
  • State where available for sale: all states except NY
  • Coverage amount range: $2,000-$40,000
  • New applicant age range: 45-85 (policy lasts forever once issued)
  • Optional riders: accidental death (doubles the payout for accidental death)
  • How to apply: Agencies licensed to sell Mutual of Omaha products (you cannot buy directly from them).
  • Application approval time: 10 minutes – 3 business days
  • A medical exam required: no

Mutual of Omaha Life Insurance has been a leader in providing affordable coverage and protection for over 100 years. They offer various types and levels of coverage so that you can find what’s suitable for you and your situation.

Best yet, they’re backed by the strength and stability of one of America’s largest companies with over 150 years of operating history! Overall, making Mutual of Omaha one of our top insurance companies.      

Liberty Bankers Life

  • Company founding date: 1958
  • A.M. Best rating: A- (excellent)
  • Product name: SIMPL preferred
  • Policy type: whole life insurance
  • 2-year waiting period: no (subject to underwriting approval)
  • Premiums stay the same forever: yes
  • Policy duration: forever (never expires)
  • Builds cash value: yes
  • State where available for sale: all states except CT, MA, MN, NH, NY, RI
  • Coverage amount range: $3,000-$40,000
  • New applicant age range: 1-80
  • Optional riders: accidental death & dismemberment | children’s term | grandchildren term
  • How to apply: Agencies licensed to sell Liberty Bankers Life products (you cannot buy di
  • Application approval time: 10-15 minutes
  • A medical exam required: no

Liberty Bankers made is high on this list due to their flexibility. They offer ten pay limited pay plans, which is a policy that can be paid up in 10-years for juveniles up to age eight-teen. In addition, they can cover someone with COPD or Chronic Obstructive Pulmonary disease, which is the only company I know who does this. This company makes it easy to get people the coverage they need.

Royal Neighbors of America

  • Company founding date: 1895
  • A.M. Best rating: A (excellent)
  • Product name: Simplified Issue Whole Life
  • Policy type: whole life insurance
  • 2-year waiting period: no (subject to underwriting approval)
  • Premiums stay the same forever: yes
  • Policy duration: forever (never expires)
  • Builds cash value: yes
  • State where available for sale: all states except AK, AL, HI, LA, MA, NH, NY
  • Coverage amount range: $7,000-$30,000
  • New applicant age range: 50-80 (policy lasts forever once issued)
  • Optional riders: none
  • How to apply: Agencies licensed to sell Royal Neighbors of America products (you cannot buy directly from them).
  • Phone number to apply: (281) 688-8166
  • Application approval time: 15-20 minutes

Royal Neighbors of America is a fraternal organization that provides its members with exclusive benefits. They also offer a competitive premium price for the amount of insurance. Usually will accept more health problems than most final expense carriers.

Foresters 

  • Company founding date: 1874
  • A.M. Best rating: A (excellent)
  • Product name: Plan Right level benefit
  • Policy type: whole life insurance
  • 2-year waiting period: no (subject to underwriting approval)
  • Premiums stay the same forever: yes
  • Policy duration: forever (never expires)
  • Builds cash value: yes
  • State where available for sale: all 50 states
  • Coverage amount range: $5,000-$35,000
  • New applicant age range: 50-85 (policy lasts forever once issued)
  • Optional riders: accidental death (doubles the payout for accidental death)
  • How to apply: Agencies licensed to sell Foresters Financial products (you cannot buy directly from them).
  • Phone number to apply: 1-800-644-2926
  • Application approval time: 15-20 minutes
  • A medical exam required: no
  • Guaranteed acceptance: no 

Foresters is a fraternal organization with competitive rates that offers its members significant benefits. 

AIG

  • Company founding date: 1919
  • A.M. Best rating: A (excellent)
  • Product name: Guaranteed Issue Whole Life
  • Policy type: whole life insurance
  • 2-year waiting period: yes
  • Premiums stay the same forever: yes
  • Policy duration: forever (never expires)
  • Builds cash value: yes
  • State where available for sale: all states except ME & NY
  • Coverage amount range: $5,000-$25,000
  • New applicant age range: 50-80 (policy lasts forever once issued)
  • Optional riders: none
  • How to apply: Agencies licensed to sell AIG products or via AIG Direct.
  • Application approval time: 3-5 minutes
  • A medical exam required: no

This plan has no health questions hence the reason for calling it the guaranteed acceptance plan. This unique plan has two years waiting period before the natural death benefit will pay the full death benefit.

Is final expense insurance worth it?

Whether burial insurance is worth it depends on your age, health, and eligibility. Always speak to a licensed independent expert who can help you compare policies before committing to a coverage plan for you and your family members. Final expense life insurance isn’t suitable for everyone. Still, seniors who want to live the rest of their days knowing their final expenses will be covered and that their loved ones won’t have to struggle to pay for funeral expenses while they grieve should explore the final expense possibility.

What is the underwriting process of a final expense policy?

It is typically easier to qualify for a final expense policy due to less intense underwriting.

What are my legal rights as a consumer?

The insurance company can question the claim raised by beneficiaries if the policyholder passes away within two years of purchasing the policy and the clause lasts two years from the date of issuance. This helps prevent fraudulent claims from taking place.

The contestability period is a vital clause in a life insurance policy that every policyholder should know in detail. It starts from the date of issuance of policy and lasts for two years. Even though the buyers often tend to ignore the contestability period while signing the policy papers, it significantly impacts the beneficiary claims made before completing this period. This is because, legally, the insurance company has the legal right to question a claim within two years after it forfeits its right; in addition, as a consumer, you should know about your state’s free-look period.