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Final Expense insurance coverage is a type of life insurance that you can keep for your entire life. Your funeral expenses and medical expenses are paid at the time of your death. Also referred to as "burial insurance," this type of policy is popular with Seniors and helps pay for additional expenses that must be paid after your death. Many plans are simplified issue and guaranteed approval. Most applications can be submitted online. The cost of settling an estate can be covered by these types of plans.

Although the face amounts of coverage can vary, typically, the death benefit ranges from $5,000-$50,000. Burial and cremation are both covered. Buying a policy is a compassionate and smart solution to a common problem. These types of policies closely resemble whole life plans, and the face amount does not decrease. Typical issue ages for these types of plans are between 50 and 85, although younger issue ages are available.

Final Expense plans have no expiration date as long as premiums are paid by the due date. Thus, a death benefit is guaranteed if bills are paid. Premiums remain level, cash value accumulates, and a policy loan may be offered. Outstanding loans will reduce the death benefit. Generally, monthly or annual billing is offered, and the beneficiary determines how funds will be used. Often, funds not immediately needed are placed in a money market fund.

Social Security can provide a one-time payment of $255 to help with funeral expenses, but the balance must be covered by the surviving family with their own burial policy. And typically, the cost of burial or cremation increases every year. Any private in-force plans are paid in tax-free dollars. If premiums for the policy were tax-deducted, the death benefit may not be tax-free.

Participating policies may pay dividends, although they are not guaranteed. If available, dividends can accumulate interest, purchase additional insurance, or reduce the premium. The application process is quick, with policies often approved within several days. The simplified underwriting process generally does not require a physical, and you may terminate a policy at any time without any obligation.

Several riders may be available, including accidental death and children's coverage. Generally, the two types of policies offered are guarantee issued and simplified issue. Peace of mind is provided knowing that funeral expenses will be paid. Also, the Indiana Department of Insurance approves all FE policies and rates. Popular carriers that offer coverage include AIG, American Continental, American National, Americo, Assurity, Banker's Fidelity, Foresters, Gerber, KSKJ Life, Lumico,  Mutual Of Omaha, Oxford Life, Sagicor, Transamerica, and United Home Life.

 

Pre-Paying A Funeral

Although pre-paying a funeral is a viable option, and eliminates a family burden in later years, it is not always the most cost-effective choice. The risk is small, but a funeral home may become insolvent, or you or your beneficiary's plans may change, costing thousands of dollars in unrecoverable money. Selecting a burial plot and a casket in advance is very appealing to some, whole others prefer to leave sufficient funds directly to family members. A pre-paid funeral plan is only an agreement (contract) between one party and the funeral home. It is not an insurance policy.

Indiana Code 30-2-9 (chapter 9) discusses prepaid funeral plans and funeral trust funds, agreements or contracts, general cemetery law, funeral trusts, and deposits of funds. The statute also states that it is not legal to enter into an agreement or contract unless all payments are made to an account in a trust company, bank, credit union or savings association whose principal office is in Indiana. The entire State Board of Funeral and Cemetery Service and rules governing the funeral and cemetery services professions pdf file is available.

 

Compare burial and final expense insurance plans in Indiana. Find the cheapest life insurance policy available.

 

The Cost Of Final Expense Insurance And Types Of Policies

The main determining factor of the cost of coverage is the age of the applicant. Of course, older applicants will pay higher premiums, since the risk of dying is greater. Your gender may also impact the cost. Your overall health can determine if you are eligible for a policy, and how much coverage will be offered. Finally, the face amount of the policy will have a big impact on the rate you pay.

Guarantee-issue polices accept all persons who apply. The cost of coverage is higher than a medically-underwritten plan. Typically, applicants are accepted if they are not incarcerated, confined to a nursing home, terminally ill, or residing in an assisted living facility. However, benefits may be limited during the first two years the policy is active. Issue ages may be limited on GI plans, and all riders may not be offered. Most applicants have major medical conditions that prevent them from qualifying for less-expensive options.

A graded benefit policy pays the beneficiary a portion of the specified policy death benefit during the first two years. Premiums are returned with an additional interest payment. Typically, only persons with serious medical issues apply for this type of policy. Although premiums are higher than conventional policies, the rate is guaranteed not to increases.

A modified policy has no waiting period for accidental death and the death benefit is paid at 100% for the lifetime of the policy. For non-accidental death, a waiting period applies, and during this time, all premiums are returned with a specified rate of return. Underwriting is simplified.

A level policy pays the full death benefit with no waiting period. Underwriting is simplified issue.

 

How Much Coverage Do You Need?

The face amount of the policy will vary, depending upon your specific situation. Since the average cost of a funeral in Indiana is between $7,000 and $11,000, typically $10,000 is the minimum face amount of coverage that should be considered. Other expenses and debt may also have to be paid, increasing the amount of coverage needed. Credit card, rent/home, real estate and income taxes, and medical bills may also need to be paid.

Although the deceased may have been covered with private health insurance, Medicare, and/or a Medigap plan, it's likely that out-of-pocket expenses will still need to be paid. Some of these expenses can be ER care, inpatient facilities, drugs, copays, deductibles, hospice care, and other unpaid medical bills. Outstanding debt, and of course, funeral-related bills, must also be considered. Common funeral expenses are listed below:

Funeral home transfer of remains

Casket and vault

Grooming and dressing

Embalming

Flowers

Headstone

Printing and announcement costs

Hearse

Facility expense

 

Applying For Coverage

All carriers require an application to be completed. The length of the application depends upon who is underwriting the policy. Extensive medical questions may be asked, and it's possible that a physical will be required. However, several carriers ask a limited number of questions with no physical required. To receive a free online quote, completing an application is not required, and no initial payment is required. Note: You can own  a Medicare Supplement plan in Indiana along with final expense coverage. The carriers can be different.

 

Indiana Final Expense Life Insurance Rates (Monthly Non-Smoking Preferred)

 

$5,000 Male Age 65

$25.22 - KSKJ Life

$27.94 - Oxford Life

$28.18 - Lumico

$29.98 - Transamerica

$30.31 - United Home Life

$32.19 - Banker's Fidelity

$32.92 - American Continental

 

$5,000 Female Age 65

$20.49 - Lumico

$21.47 - KSKJ Life

$22.07 - Oxford Life

$22.53 - Transamerica

$23.40 - United Home Life

$26.54 - Banker's Fidelity

$27.50 - American Continental

 

$10,000 Male Age 65

$44.82 - KSKJ Life

$50.14 - United Home Life

$53.29 - Oxford Life

$56.36 - Lumico

$56.45 - Transamerica

$60.03 - Banker's Fidelity

$62.50 - American Continental

 

$10,000 Female Age 65

$37.32 - KSKJ Life

$37.95 - United Home Life

$40.98 - Lumico

$41.54 - Oxford Life

$41.55 - Transamerica

$48.72 - Banker's Fidelity

$51.66 - American Continental

 

$25,000 Male Age 65

$103.63 - KSKJ Life

$118.82 - United Home Life

$129.31 - Oxford Life

$135.89 - Transamerica

$140.89 - Lumico

$143.55 - Banker's Fidelity

$151.24 - American Continental

 

$25,000 Female Age 65

$84.86 - KSKJ Life

$88.35 - United Home Life

$98.64 - Transamerica

$99.95 - Oxford Life

$102.46 - Lumico

$115.28 - Banker's Fidelity

$124.16 - American Continental

 

$5,000 Male Age 70

$32.36 - KSKJ Life

$35.54 - Oxford Life

$37.07 - Lumico

$39.04 - Transamerica

$39.49 - United Home Life

$42.50 - American Continental

$43.50 - Banker's Fidelity

 

$5,000 Female Age 70

$27.36 - KSKJ Life

$27.39 - Oxford Life

$28.15 - Lumico

$28.41 - United Home Life

$28.71 - Transamerica

$33.50 - Banker's Fidelity

$34.48 - American Continental

 

$10,000 Male Age 70

$59.09 - KSKJ Life

$66.33 - United Home Life

$68.48 - Oxford Life

$74.14 - Lumico

$74.59 - Transamerica

$81.66 - American Continental 

$82.65 - Banker's Fidelity

 

$10,000 Female Age 70

$46.79 - United Home Life

$49.09 - KSKJ Life

$52.17 - Oxford Life 

$53.92 - Transamerica

$56.31 - Lumico

$62.64 - Banker's Fidelity

 

$25,000 Male Age 70

$103.63 - KSKJ Life

$118.82 - United Home Life

$129.31 - Oxford Life

$135.89 - Transamerica

$140.89 - Lumico

$143.55 - Banker's Fidelity

 

$25,000 Female Age 70

$84.86 - KSKJ Life

$88.35 - United Home Life

$98.64 - Transamerica 

$99.95 - Oxford Life

$102.46 - Lumico

$115.28 - Banker's Fidelity