Final Expense Insurance 101: Avoid the 2-Year Waiting Period & Choose the Right Company

Dvir MoschePosted in Uncategorized last updated on April 16, 2025

🪦 What Is Final Expense Life Insurance?

Final expense life insurance is a small life insurance policy made just for seniors.

It’s meant to help your loved ones pay for funeral costs, medical bills, or small debts when you pass away.

It’s also called burial or funeral insurance, but don’t worry—it’s not scary.

It’s simply peace of mind. 💙

Here’s what makes it different:

🧓 Made for seniors ages 50 to 85
✅ It’s permanent—it never expires as long as you pay your premiums
💵 The death benefit is smaller than regular life insurance—usually between $5,000 and $25,000
💐 It’s meant to cover things like:
- A funeral and burial or cremation
- Unpaid medical bills
- Credit card or personal loan balances
- Other end-of-life expenses

It’s a way to ensure your family doesn’t get stuck with bills during a difficult time.

🗣️ Real Example:
“After my husband passed, his final expense policy helped me pay for the funeral and even had enough left over to pay off his last hospital bill. I’m so glad we had it.” – Linda, age 74, North Carolina

🛠️ How Does Final Expense Insurance Work?

Final expense insurance is simple and easy to understand—just the way it should be. 👍

Here’s how it works:

🕒 It’s a whole life policy, which means it never expires as long as you keep paying your monthly premium.
💲Your premium stays the same—it will never go up, no matter your age or health later in life.
💵 Over time, it builds a small amount of cash value. You can borrow from it if needed (though this reduces the payout).
👨‍👩‍👧 When you pass away, your beneficiary gets a tax-free payout—usually within just a few days.
📝 The claims process is quick, so your loved ones don’t have to wait long to cover your final expenses.

🎯 Example:
Betty, 76, from South Carolina, had a $10,000 policy.

When she passed, her daughter was able to pay for her funeral quickly and a few outstanding bills—all within a week.

With final expense insurance, you don’t need to worry about outliving your policy or rising costs.

It’s built to give you peace of mind and help your family when needed. ❤️

👵 Who Needs Final Expense Insurance and Why?

Final expense insurance isn’t for everyone—but for many seniors, it’s one of the smartest choices they can make.

Here’s who it helps the most:

👨‍👩‍👧 Seniors who don’t want to burden their family
If you don’t want your kids or grandkids to worry about funeral costs, this policy gives them a helping hand.
💰 People without enough savings for a funeral
A funeral today can cost $8,000 to $12,000 or more. If you don’t have that set aside, final expense insurance can cover it.
🩺 Those with health conditions
Many seniors can’t qualify for term insurance because of past health issues. Final expense policies are easier to qualify for, even if you’ve had diabetes, a heart issue, or cancer in the past.
🔒 Buyers who want guaranteed peace of mind
You’ll get:
- A fixed premium that never changes
- A guaranteed payout to your loved ones
- And a policy that lasts your whole life

💬 Story Time:
“I didn’t want my daughter to take out a loan just to bury me,” said Harold, 81, from Ohio. “My $15,000 policy gives her peace and me peace too.”

💵 What Does Final Expense Insurance Cost?

Final expense insurance is usually very affordable, especially compared to more significant life insurance policies.

Your monthly cost depends on a few things, like your age, health, where you live, and how much coverage you want.

But here’s a quick look at what many people pay:

📊 Sample Monthly Rates for a $10,000 Policy:

Age	Male	Female
55	~$35/month	~$30/month
65	~$50/month	~$40/month
75	~$75/month	~$60/month
80	~$110/month	~$90/month

These are sample prices for non-smokers in good health.

Rates can be higher or lower depending on your situation.

📝 What Affects Your Price?

Your age (younger folks pay less)
Your health history
The state you live in (some states cost more than others)
The amount of coverage you want ($5,000 vs. $20,000, for example)

🎯 Example:
A 65-year-old man in North Carolina might pay around $50 a month for a $10,000 policy.

A 65-year-old woman might pay closer to $40 a month.

🖼️ Visual Tip:
A simple, flat-design chart titled:
“Monthly Final Expense Insurance Rates by Age (Male vs. Female)”
Add it just below this section to help readers quickly compare costs!

⚖️ Final Expense vs. Term Life Insurance

A lot of people ask, “Should I get term life or final expense?”

Here’s the easy answer:

🕓 Term life is usually cheaper at first, but it expires after 10, 20, or 30 years. If you live past the term, your coverage ends—and you’re left with nothing.
🌳 Final expense insurance never expires. It lasts your whole life, and the payout is guaranteed, as long as you keep paying your premiums.

Why Most Seniors Choose Final Expense:

✅ It’s permanent
💰 Premiums never go up
🧓 Designed specifically for ages 50 to 85
🧠 Easier to qualify for, especially with health issues

💬 Real Talk:
Many seniors in their 60s or 70s outlive their term policies and are left uninsured when they need it most.

That’s why final expense is often the better long-term solution.

⚰️ Final Expense vs. Prepaid Funeral Plans

You might wonder, “Should I just prepay my funeral instead?”

That’s a good question, but there are some significant differences.

🏦 Final Expense Insurance:

✅ Gives your family cash they can use however they need
💵 Can cover not just funeral costs, but also:
- Medical bills
- Travel expenses
- Small debts
🔄 Flexible — your loved ones stay in control

🪦 Prepaid Funeral Plans:

📍 Usually tied to one funeral home
⚠️ Locked-in to specific services (which may change over time)
❌ Doesn’t always cover all the costs (like flowers, obituary, or extra services)

💬 Good to Know:
With final expense insurance, your family gets the money, not a funeral home.

That means they can shop around or handle things the way you want.

🎯 Example:
“After my mom passed, we used her final expense policy to pay the funeral home—but we also had enough to fly my brother in from California.” – Marie, 68, Virginia.

❌ Common Misconceptions About Final Expense Insurance

There’s a lot of confusion out there about final expense insurance.

Let’s clear up some of the most common myths, so you can feel confident making the right choice. 👍

💬 “It’s only for poor people.”

Not true. Final expense is for anyone who wants to make things easier on their loved ones—no matter how much money you have.

Many well-off seniors buy it to avoid dipping into savings or disrupting family plans.

💬 “All policies have a 2-year waiting period.”

False!

Many companies offer day-one coverage if you’re reasonably healthy.

That means your full benefit is available immediately, not after two years.

💬 “You have to be in perfect health.”

Nope. Final expense policies are designed for seniors with health issues.

Even if you have conditions like diabetes, high blood pressure, or a past heart problem, you can still qualify, often with no medical exam.

💬 “It’s just like term life insurance.”

Not even close.

Term life ends after a set number of years.

Final expense lasts your entire life, with guaranteed premiums and a permanent payout.

💡 Tip: Don’t let myths stop you from protecting your family.

The right final expense policy can fit your needs, budget, and health.

🚫 Final Expense Companies to Avoid

Some insurance companies advertise on TV or in your mailbox with catchy promises—but behind the scenes, they may overcharge, mislead, or lock you into policies with long waiting periods, even if you’re healthy.

These are some companies you should be very cautious about:

❗ Lincoln Heritage

Known for pushy sales tactics
Sells under the name “Funeral Advantage”
Most policies come with a 2-year waiting period, even for people in decent health
Often more expensive than better-quality plans

❗ AARP New York Life

Backed by big names, but…
Policies are pricey for what they offer
Many are actually term life (not permanent)
Coverage may cancel at age 80 or older, right when you need it most

❗ Globe Life

Offers term insurance only (not whole life)
Starts at $1 per month, but that’s just a teaser—rates rise fast
Policies can expire, leaving you without coverage later in life

❗ Senior Life Insurance Company

Uses aggressive mailer and Facebook ads to target seniors
Most people are placed into 2-year waiting period policies
Not the best option for seniors who qualify for day-one coverage elsewhere

❗ Colonial Penn ($9.95 Plan)

Advertised everywhere, but be careful:
- Guaranteed issue only – no health questions, but always a 2-year wait
- Coverage is sold by “units” – most people only get $1,000–$2,000 of coverage per unit
- The “$9.95” price sounds good, but the real benefit is very low

💡 Tip: If it sounds too good to be true—or if it arrives in the mail every month—it’s probably not the best deal.

A local, independent agent can show you much better options with no games.

📨 Flyer-Based Life Insurance Offers (Like Mutual of Omaha by Mail)

You’ve probably seen those life insurance offers that come in the mail—big letters, easy forms, no health questions.

But here’s what many folks don’t realize:

📬 Most mailer policies come with a 2-year waiting period, even if you’re in good health.
🚫 These are usually guaranteed issue plans. That means they accept everyone—but they don’t pay the full benefit if you pass away in the first two years (unless it’s an accident).
🏷️ Example:
Mutual of Omaha is a trusted company—but the direct mail offer they send out is almost always guaranteed issue. That’s different from the day-one coverage you can get if you apply through an independent agent.

💡 Tip: If you’re healthy enough to answer a few simple health questions, you can often skip the 2-year wait and pay less each month.

Always compare options before saying yes to a mailer!

✅ The Best Final Expense Companies Offering Day-One Coverage

Good news!

You don’t have to wait two years for coverage to kick in.

Many top-rated companies offer day-one protection, even if you’ve had health conditions like:

Diabetes (with or without insulin)
High blood pressure
Past heart attack or bypass surgery
COPD or asthma (in some cases)

These companies look at your full health picture and often approve immediate coverage if your condition is stable.

Here are some of the best:

🏆 Mutual of Omaha – One of the most trusted names. Their Living Promise plan offers immediate coverage for many.
🛡️ Transamerica – Offers competitive rates and day-one coverage for various health issues.
❤️ Aetna / Accendo CVS – Friendly underwriting and excellent options for folks with diabetes or heart history.
🦆 Aflac – Known for supplemental coverage, but also has strong final expense options.
🏦 SBLI (Savings Bank Life Insurance) – Offers affordable, straightforward policies with day-one protection.
🧾 American Amicable – Very flexible with underwriting; great for seniors with past medical conditions.
👑 Royal Neighbors of America – Offers valuable extras like discounts for health and wellness services.
🌲 Foresters – Known for community support and added member benefits like scholarships and legal services.
🏡 CICA Life – A growing name that offers solid coverage options with simple approval.

💡 Tip: An independent agent can shop all of these companies for you to find the best rate and coverage—without the two-year wait.

🩺 Best Final Expense Companies by Health Condition

(Tap to expand if you’re reading on a phone!)

Even with health conditions, many seniors still qualify for day-one coverage.

Here’s a quick guide to which companies are best for certain situations:

💉 Diabetics (Even With Insulin)

Aflac
Mutual of Omaha
👉 These companies are insulin-friendly and don’t penalize you just for using injections.

🦶 Diabetics With Neuropathy

Royal Neighbors of America
Transamerica
👉 These are two of the only companies that will still offer immediate coverage, even with diabetic nerve pain.

🌬️ COPD (Mild to Moderate Cases)

Aetna / Accendo CVS
CICA Life
👉 If you use inhalers but haven’t been hospitalized recently, you may qualify for day-one protection.

❤️ Past Heart Attack or Stent

American Amicable
👉 Very flexible underwriting—even if your heart event was within the last few years, you may still qualify for full, immediate coverage.

🎗️ Cancer (Over 2 Years Ago)

Royal Neighbors of America
👉 If your cancer was more than two years ago, Royal Neighbors can offer day-one coverage in many cases.

💬 Helpful Tip:
Don’t assume you’ll be declined just because of a diagnosis.

Many seniors are surprised to learn they still qualify for great coverage—without any waiting period!

👪 Can You Buy Final Expense Insurance for a Loved One?

Yes.

📝 What You Need:

✅ Insurable interest
This just means you would be financially affected if that person passed away. If it’s your mom, dad, husband, wife, or child—you’re covered.
✅ Consent
They must agree to the policy. You can’t take out insurance without their knowledge.
✅ Basic health information
Most companies will ask simple health questions, or in some cases, a brief phone interview. There are no physical exams.

👵 Real Example: How to Buy for Your Aging Mom

Let’s say your mom is 78 and lives on a fixed income.

She doesn’t have insurance and worries about leaving funeral costs behind. You can:

Talk with her and get her permission
Choose a policy that fits her health and age
Pay the monthly premium yourself
List yourself as the beneficiary (or whoever will handle final expenses)

That’s it.

You can take a burden off her shoulders—and yours in just a few steps. ❤️

⏳ What Is the Grace Period and Free Look Period?

Life happens—so insurance companies build in a little wiggle room to help keep you protected.

Here are two terms every policyholder should know:

🗓️ Grace Period

If you ever miss a payment, most final expense policies give you a 30-day grace period.

That means:

You won’t lose your coverage right away
You can catch up on the payment within those 30 days
Your policy stays active during that time

💡 Tip: Always try to pay on time, but it’s nice to know you’re not immediately at risk if something goes wrong with your bank or mail.

💵 Free Look Period

After you buy a policy, you’ll usually get a “free look” period—this is your time to review everything and change your mind if needed.

Usually 10 to 30 days, depending on the company and your state
You can cancel the policy for any reason
You’ll get a full refund of any premium you’ve paid

🧓 Real Example:
“I bought a policy, but after discussing it with my daughter, I decided to switch to a different company.

Because I was still in the free look period, I got my money back—no hassle.” – Frank, 71, Georgia

💵 Cash Value in Final Expense Life Insurance

Some final expense policies come with a small extra benefit called cash value.

It’s not much, but over time, it can be handy.

🏦 What Is Cash Value?

Your policy builds a small savings account inside it, called cash value
It grows slowly over the years, just by keeping your policy active
You can borrow money from it if you ever need a little help

🔁 Things to Keep in Mind:

It’s a loan, not a free withdrawal
If you borrow and don’t pay it back, it will lower the death benefit
That means your loved ones would get less when the time comes

💬 Example:
Mary, 74, borrowed $300 from her policy to fix her car, which helped her get to doctor’s appointments.

Years later, when she passed away, her family received $9,700 instead of the full $10,000.

💡 Tip: Only borrow from your cash value when you genuinely need it—and talk to your agent so you understand how it affects your coverage.

⚠️ Mistakes to Avoid When Buying Final Expense Insurance

Final expense insurance is meant to make life easier, not more confusing.

But many seniors get steered in the wrong direction, usually because of slick marketing or pushy sales tactics.

Here are some common mistakes to watch out for:

📬 Getting Tricked by Mailers

Those flyers that show up in your mailbox every week?
Most are guaranteed issue policies with a 2-year wait, even for healthy people.

And they usually cost more than better options.

😕 Choosing Guaranteed Issue When You Don’t Need It

Guaranteed issue means no health questions, but it also means:

A 2-year waiting period
Higher monthly costs

💡 If you’re in decent health—even with conditions like diabetes or high blood pressure—you may qualify for level (day-one) coverage with lower premiums.

🙅 Not Working With an Independent Broker

Some agents only work with one company.

That limits your options.
An independent broker (like Palmetto Mutual 😉) can shop around and find the best deal for your age and health, not just what one company offers.

💸 Overpaying Because of Brand Names or TV Ads

Big brands like Colonial Penn, AARP, and Globe Life spend a lot on advertising.

That money comes from somewhere—often your pocket.
Many of their policies are overpriced or full of fine print.

💬 Helpful Reminder:
The best policy is the one that gives you the right coverage at the best price—without tricks, delays, or surprises.

🧑‍💼 Why Work With an Independent Broker Like Palmetto Mutual?

At Palmetto Mutual, we’re not just selling insurance—we’re helping families protect what matters most. ❤️

We know that choosing final expense insurance can be confusing, especially with all the ads, mailers, and sales calls.

That’s where we come in.

Here’s how we make it simple:

🔍 We Shop Over a Dozen Companies for You

We’re independent. That means we work for you—not the insurance companies.

We compare top carriers like Mutual of Omaha, Aetna, Royal Neighbors, and more to find you the best coverage at the best price.

🚫 We Help You Avoid Waiting Periods

Many folks qualify for day-one coverage and don’t even know it.

We’ll ask a few simple questions and make sure you don’t end up with a 2-year waiting period you don’t need.

🌎 We Know State-Specific Options in SC, NC, and Beyond

We live and work in the Carolinas—so we understand the rules, rates, and plans available in South Carolina, North Carolina, and many other states.
Whether you’re in Myrtle Beach, Charlotte, or rural Georgia—we’ve got you covered.

🤝 We’re Real People, Not Call Centers

You can meet with us in person or by phone—whatever’s easiest.

No spam
No pressure
Just friendly help from someone who cares

💬 “I didn’t know where to start. Palmetto Mutual explained everything in plain English and found me a great plan that fit my budget. I even got approved for day-one coverage!” – Susan, 69, Florence, SC

📞 Get Help Choosing the Right Final Expense Policy

You don’t have to figure this out on your own.

Final expense insurance should be simple, affordable, and built around your needs, not a one-size-fits-all plan pushed by a TV ad or flyer in the mail.

At Palmetto Mutual, we:

Compare over a dozen top companies
Help you qualify for day-one coverage (even with health issues)
Offer personal service by phone or face-to-face
Never pressure you or flood your phone with spam calls

👉 Don’t waste money on the wrong policy.
Let us help you find the best coverage at the best price—no pressure, no gimmicks.

✅ [Get My Final Expense Quote]

We’ll walk you through it step-by-step.

Friendly, simple, and stress-free.

❓ Frequently Asked Questions

We always hear these questions—and we’re happy to clear things up. 😊

🤔 What is the difference between burial insurance and final expense?

There’s no real difference. Burial insurance is just another name for final expense life insurance.

Both are small whole life policies that cover funeral costs, medical bills, or other end-of-life expenses.

💉 Can I get final expense life insurance with diabetes?

Yes! Many companies offer day-one coverage for diabetics, even if you use insulin.

Aflac, Mutual of Omaha, and Accendo CVS are just a few diabetes-friendly.

💵 How much does final expense insurance cost at age 65?

It depends on your gender and health, but here’s a quick estimate for a $10,000 policy:

Male (65): ~$50/month
Female (65): ~$40/month

Prices vary by company, state, and coverage amount.

🛡️ What’s the best final expense company with no waiting period?

Mutual of Omaha, Royal Neighbors, American Amicable, and Transamerica offer immediate coverage if you qualify.

It’s best to work with an independent broker like Palmetto Mutual to find the right fit for your health.

🎗️ Can I get coverage if I had cancer?

Yes—as long as your cancer treatment ended over two years ago, many companies (like Royal Neighbors) will still offer day-one protection.

If it’s been more recent, guaranteed issue options are available.

⚠️ Is the $9.95 plan from Colonial Penn a scam?

It’s not a scam, but it can be misleading.

The “$9.95 per unit” plan is guaranteed issue with a 2-year waiting period, and each unit often covers only $1,000–$2,000—far less than most people expect.