Your Provider
Because Final Expense plans are offered privately, prices will vary from provider to provider. The overall cost of any final expense plan will, then, depend greatly on this factor.
It is very important, then, for you to search for providers that meet your specific needs, goals, and price points. Most providers do one thing very well, and the best providers do that and have a balance of other good benefits as well.
The best way to find a good price for the coverage you’re looking for, then, is to first identify your main needs—say, for instance, you want a company that has excellent, continued customer service and a variety of plans to choose from.
Keep those factors in mind as you do your research. One of the best ways to find providers that meet your goals (with the coverage you need as well) is through an agency. They know the business and can give you advice and access to top-notch plans and prices.
Your Age
Final Expense plans are one of the very few life insurance policies that accept older individuals, typically up to age 65. This is great news, but it does mean that companies will raise their rates based on age.
The company is essentially making up for an assumed risk (i.e. because you are older, they anticipate you may not be able to make as many payments, thus the payments you do make are higher). Not much can be done to avoid this unless of course you are a bit younger and are interested in a plan. But don’t fret—you may pay more in a shorter amount of time, but you are paying for a lesser amount of time.
The Type of Plan (Simplified Issue)
Of course, the amount of coverage you purchase plays a big part in the cost as well. The more you include in your payout (anywhere from $5,000 up to $75,000), the more you’ll pay on a monthly basis.
The good news is, unlike other types of life insurance, final expense does not consider your health for eligibility.
There are 2 main final expense plan structures that also greatly influence the cost of your plan. When you enroll under Simplified Issue, you will answer a few questions regarding your health. This is rarely used to reject you for coverage, but rather to determine your costs—because there is less assumed risk, your rates will be lower.
The Type of Plan (Guaranteed Issue)
Guaranteed Issue, on the other hand, does not even consider your health when setting your rates. This is perfect for those who have otherwise disqualifying conditions, as they can still receive great coverage. It does mean, however, that your rates will be a bit higher, but not unreasonable.