Life Insurance for Every Stage of Life

Final expense insurance, often called burial insurance, is a small whole life policy that helps your family pay for a funeral and other final expenses. It lasts for life as long as you pay the premiums. Term life insurance covers you for a set number of years, such as 10, 20 or 30, and usually costs the least per dollar of coverage, which makes it a common way to replace your income while your family depends on it. Mortgage protection is mainly a reason for buying life insurance rather than a separate type: a policy, often term life, with enough coverage for the right length of time so your family can pay off the mortgage or keep making the payments.

It depends on what you want the money to cover. Start with funeral, burial or cremation costs, then add your mortgage balance, other debts such as car loans, credit cards and medical bills, and any income your family relies on. Final expense coverage usually focuses on the funeral and final bills, while term life and mortgage protection are usually sized to pay off a home or replace income. There’s no single right number; it depends on your family’s needs.

In many cases, yes. Each insurance company looks at health conditions differently, so a condition that leads to a decline at one company may be accepted by another. For term life, conditions such as high blood pressure, diabetes and heart problems can raise the premium, shorten the term lengths available or limit the coverage amount. For final expense, many common conditions can still qualify for first-day coverage, while more serious or recent conditions may limit the types of coverage available.

Often not. Most final expense plans ask health questions instead of requiring a medical exam, and the insurance company may also check your prescription history. Some term life applicants can skip the exam through accelerated underwriting or nonmedical programs; nonmedical programs often have stricter health rules and lower coverage limits, and other applicants may still need an exam. Guaranteed-acceptance plans skip the health questions too, but they come with a two-year waiting period for death from natural causes.

It depends on the policy. With a level-premium whole life or final expense policy, the monthly payment is set when the policy starts and doesn’t rise as you get older. With level term life, the premium stays the same for the term you choose; if you renew after the term ends, the price usually goes up, sometimes sharply. Some policies are built with increasing prices, so it’s worth checking before you buy.

With first-day coverage, the full death benefit is available as soon as the policy is approved and in force. With a two-year waiting period, if you die from natural causes during the first two years, your beneficiary generally receives the premiums you paid plus interest instead of the full benefit. Which one you qualify for depends on your answers to the health questions and the company you apply with.