Final expense insurance or burial insurance allows the policyholder to cover the expense of their own funeral service. It is an important financial tool that offers coverage for both burial and cremation. Funeral services can get expensive, and this is one way of ensuring that family members do not have to worry about it should the time come. There are some must-know details to explore before purchasing final expense insurance, and these are listed below:

• No requirement for a medical examination
  Final expense insurance policies do not require applicants to undergo any medical examinations. Simplified-issue life insurance, one of the policies that offers coverage for final expenses, does require a different test. The applicant may have to answer specific questions about their health and lifestyle. Other policies, like the guaranteed issue policy, do not require the applicant to answer any questions.
• Basis for policy denial
  An applicant could be denied a final expense policy, particularly the simplified issue insurance policy. As mentioned above, applicants may have to answer questions about their health and lifestyle. If the answer to these questions indicates a risk to health or life, the policy can be denied. Moreover, if the person applying for the policy participates in activities that could be deemed dangerous, they may have to pay higher rates.
• Age limit for eligibility
  Some final expense insurance policies, such as guaranteed insurance, have an age-limit criterion. This means that the age of the person applying for the policy must fall within a specific range as required by the policy to be eligible. Usually, for guaranteed insurance policies, a person must be between 50 and 85 years old to be eligible. It is also important to note that the policy’s premium or rate depends on the applicant’s age. Generally, the applicant may be offered relatively lower interest rates at a younger age.

• Coverages offered besides funeral costs
  While final expense insurance policies cover the costs associated with funeral services, they may also offer coverage for other expenses. These include settling the pending hospital bills of the policyholder and their outstanding loans and debts. 

• How the beneficiaries receive the sum assured
  How the beneficiaries receive the sum assured differs based on the type of policy. For instance, with a pre-need insurance policy, which is another type of final expense insurance policy, the sum goes directly to the funeral home. So, the funds usually only get used to cover the expenses associated with funeral services. Meanwhile, with other burial insurance policies, the beneficiaries receive the sum and can use it for other expenses besides those of the funeral.