Final Expense Insurance for Seniors Over 70
Final expense insurance is a type of small whole-life policy meant to help loved ones pay for a funeral, burial or cremation, and other end-of-life costs such as medical bills or small debts. It is one of the most common options people look at after age 70.
How it is usually structured
- Permanent coverage. As long as premiums are paid, the policy does not expire at a certain age.
- Level premiums. The premium is set when the policy starts and typically does not rise over time.
- Smaller face amounts. Coverage amounts are generally modest compared with traditional life insurance, sized to end-of-life costs.
- Simpler underwriting. Many policies use a health questionnaire rather than a medical exam.
Level benefit vs. graded benefit
Graded vs. level benefit: what the terms mean
With a level benefit policy, the full amount is payable from the start. With a graded benefit policy, if death from natural causes happens in the first few years, the payout may be limited — often a return of premiums paid plus some interest — and the full amount applies after that waiting period. Graded policies are often offered when health answers make a level policy unavailable. The exact terms vary by carrier and state.
Who it tends to fit
Final expense coverage often suits people who want to avoid leaving funeral costs to their family, who no longer need large amounts of coverage, or who want a policy that lasts for life. If you are shopping for a mother or father, see our guide to life insurance for a parent over 70.
Questions to ask before you buy
- Is the benefit level or graded, and how long is any waiting period?
- Will the premium ever change?
- Does the policy build cash value?
- What health questions are asked, and how do my answers affect the options?
- How is the benefit paid to my beneficiary?
Because terms and prices differ from one carrier to another, comparing several options is the practical way to find a fit. Request a quote and an independent agent will compare what is available in your state.