• Final expense life insurance is typically less expensive than traditional life insurance policies.
• Final expense life insurance policies typically have simplified underwriting requirements, which means that clients can often be approved for coverage quickly and easily without having to undergo a medical exam.
• Guaranteed acceptance: Final expense life insurance policies may provide clients with guaranteed acceptance regardless of their health status.
• Peace of mind: Clients have peace of mind knowing that their final expenses will be covered and that their loved ones will not be burdened with the financial cost.
• Selling final expense life insurance can be an additional revenue stream for insurance agents because it allows them to offer a product that is tailored to the specific needs of their clients.

Final Expense Life Insurance typically has a small death benefit ($1,000 – $25,000).

What types of final expense life insurance plans are available?

Depending on your client’s health and budget, the following are three types of common burial insurance plans:

• Level – Immediate Death Benefit, 1^st Day Coverage (for clients with excellent/good health) 
• Graded – Limited Death Benefit for the first 2 policy years (for clients with fair health)
  • 1^st Year: Return of Premiums plus 10% interest
  • 2^nd Year: 50% of Death Benefit
  • 3^rd Year: Full Death Benefit

• Guaranteed Issue – Limited Death Benefit for the first 2 policy years (for clients with poor health).
  • 1^st Year: Return of Premiums plus 10% interest
  • 2^nd Year: Return of Premiums plus 10% interest
  • 3^rd Year: Full Death Benefit

Final Expense Life Insurance Underwriting

Due to the simplicity of these products, practically all insurance carriers who offer burial insurance will have non-medical, simplified issue underwriting for these plans. This means that your client will not have to take any medical exams and will just have to answer a few yes/no health questions to determine the underwriting classification. Graded and guaranteed issue plans are available for clients who can’t qualify with the health questions. 

Additional Benefit Riders for Final Expense Life Insurance

Besides offering a guaranteed death benefit and guaranteed cash value accumulation, most burial policies will include an accelerated death benefit rider for no cost. This rider allows clients to accelerate a portion of the death benefit to use in the event of a chronic or terminal illness diagnosis.

Why Should Insurance agents sell final expenses?

Overall, insurance agents should consider offering final expense life insurance to their clients as it provides a cost-effective, simplified, and guaranteed option for covering end-of-life expenses. Additionally, it provides peace of mind to clients and can be an additional source of revenue for agents.

Why Pinnacle Financial Services

If you are an insurance agent looking to expand your product offerings and provide your clients with the best final expense life insurance options, I encourage you to contact Pinnacle Financial Services. Our team of experts can provide you with the resources and support you need to be successful in selling final expense life insurance. Don’t miss out on the opportunity to provide your clients with peace of mind and to grow your business. Contact Pinnacle Financial Services today to learn more.

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