Buying Final Expense Life Insurance in Texas
In Texas, there are different ways to purchase final expense life insurance (also called burial insurance or funeral insurance), and these include through an agent, directly from an insurance company, or from an insurance broker. Most agents maintain websites on which they display final expense life insurance quotes ads for the companies they represent. Life insurance agents are a good fit for getting the right final expense policy. They can help you with the application process to get the best final expense coverage at the most affordable price. The two types of final expense life insurance in Texas are:
Simplified issue final expense life insurance
Guaranteed issue final expense life insurance
Note that final expense life insurance is considered a type of whole life insurance with some difference. A key difference is that final expense life insurance focuses on seniors, while other types of whole life insurance have a wider audience.
Agents selling final expense life insurance in Texas are required to have a state Insurance license. It is advisable to shop for multiple quotes from different insurers and compare them across similar coverage to make informed decisions when getting funeral insurance.
Do you Actually Need Final Expense Insurance?
You need final expense life insurance in Texas for the following reasons:
Pay for your funeral costs when you pass away
Pay for your final medical bills
Donate to a good cause (charity) after you die
Provide a death benefit for your loved ones
Relief your loved ones the financial burden of paying for your final expenses out of pocket while also leaving money behind to settle your mortgage, pay your children's college tuition, and settle car payments
For example, the National Funeral Directors Association (NFDA) observed in a 2021 report that funeral costs were on the increase with the average cost up to $9,000 across the U.S. Meanwhile, in 2022 Texas funeral expenses ranged between $4,000 to almost $11,000, depending on the county, with the state-average of around $6,200. This can be an additional financial burden to a family grieving a loved one.
Discuss your final expense policy needs with a Texas-licensed insurance agent. A professional agent, competent in final expense insurance work, will find you an affordable policy based on your needs.
How to Shop for Final Expense Life Insurance
You can shop for a final expense life policy from an insurance company in Texas through a licensed life insurance agent. Ensure to consider the following when shopping for final expense life insurance:
Check the company’s financial rating, Comdex rating, and complaint history. You can contact the Texas Department of Insurance (TDI) consumer helpline at (800) 252-3439 to look up a company’s or an agent’s rating.
Obtain quotes from at least three insurance companies in Texas or their agents to ensure you are getting the best deal. Compare the quotes across similar coverage and understand what they cover and do not. Sometimes, a less expensive policy might have fewer features or a lower death benefit, while a more expensive policy might offer better features and a higher death benefit. This is why you need a knowledgeable agent when shopping. They are well experienced and understand what each policy covers.
What are my Final Expense Insurance Options?
Final expense insurance is a type of permanent life insurance policy purchased by adults to cover funeral expenses and other funeral costs related to end-of-life. Your final expense life insurance options in Texas include:
Simplified issue final expense life insurance: Getting this policy does not require you to take a medical exam or traditional underwriting. Applicants can get it by answering some health questions. It is best for people with relatively good health
Guaranteed issue final expense life insurance: This senior life insurance policy works best for people with pre-existing health conditions who cannot get other types of life insurance coverage. They can get it without answering health questions or taking a medical exam. You can always expect your application to be approved. It offers lower final expense coverage and is usually expensive because it is primarily for high-risk individuals.
Your best bet in selecting a final expense life insurance policy that best fits your needs is to contact a knowledgeable Texas-licensed insurance agent and discuss your needs with them.
How to Qualify for Final Expense Life Insurance
Anyone in Texas aged 50 and over qualifies for permanent life insurance such as final expense life insurance, provided they meet the following requirements:
They must be resident in the United States and have financial ties to the country
They must have U.S. permanent residency status, be U.S. citizens, or have permanent residency status and have lived in the U.S. for at least two years
They must have a valid Social Security Number (SSN) or an Independent Taxpayer Identification Number.) (ITIN) and be at least 80 years old if they are foreign nationals
A person aged below fifty can opt for other types of whole life insurance, which can provide much more comprehensive coverage for a lower cost. A Texas-licensed insurance agent can help determine if you qualify for final expense life insurance. However, you must discuss your burial insurance needs with them.
Where to Buy Final Expense Life Insurance
You can purchase final expense life insurance in Texas from insurers licensed by the Texas Department of Insurance (TDI). Make sure to use the services of a licensed agent when purchasing a final expense policy. A knowledgeable agent has a good understanding of the insurance market and can get you a cost-effective policy with a death benefit that covers all your anticipated final expenses.
Where to Get Final Expense Life Insurance
Final expense life insurance is purchased through a state-licensed life insurance agent. Usually this is done online, in person, and over the phone. If you find a quote you like online, or in the mail advertising, and fill out an application, you will get contacted by an agent who provided the offer. This agent can discuss only the products that are authorized to sell:
CAPTIVE: If the agent works for an insurer or an agency, they can only discuss the products that are offered by their employer. Captive agents have limited access, but they may be offering exclusive deals that independents do not have access to.
INDEPENDENT: If you are speaking with an independent life insurance agent, they are able to quote you from the list of all companies that the agent chooses to represent. While independents may have access to more plans overall, they may not have access to the exclusive deals that captives may have.
Compare both options and check which one can give you a better offer.
While buying online is easy and convenient, be wary of online options that may promise relatively affordable life insurance policies. No matter what option you use to get your final expense policy, it is crucial to only sign up on a policy that meets your needs and that you can understand.
Where Can I Buy Affordable Final Expense Insurance?
Final expense insurance cost varies based on the insurance company and depends on factors such as the gender and age of the prospective insured. Using the services of a knowledgeable life insurance agent is the best way to get an affordable final expense life policy.
When comparing final expense life insurance offers in Texas, speak to both the Captive and Independent agents. The insurance market constantly changes and evolves. New final expense products appear all the time and you never know where you will find the best offer. Some insurers only work with their own (captive) agents, while others allow independents to offer their plans. As a result - if you want to buy affordable final expense life insurance, you should check both sources.
How to Apply for Final Expense Insurance
You can apply for final expense life insurance coverage in person by walking into the office of a licensed insurance company. The process will involve filling in forms, answering the required questions, and providing personal data. It does not require a medical exam. But instead of a medical exam, you will be required to answer a series of health questions. Applying in person offers you an opportunity to interact directly with a representative of the insurance company.
You can also apply for final expense insurance online. Applicants only need to fill out a web form after completing a registration to apply. An online quote tool helps you to compare the features of various policies before choosing the one that best suits your needs.
The best option when applying for final expense life insurance in Texas is using the services of a qualified insurance agent. The agent will help facilitate the application process, including completing all the paperwork. Agents will ask questions to determine your needs in a bid to find you a policy tailored towards them. Applying through an insurance agent is recommended as an agent is knowledgeable about the available options from the different insurance companies.
Who Can Help with Application for Final Expense Life Insurance?
Only a licensed insurance agent can help you with an application for final expense life insurance in Texas. An insurance agent is valuable in the process of applying for a policy as they can help find information on the available options and assist with the application process while avoiding potential pitfalls.
Should I Use an Insurance Agent to Buy Final Expense Life Insurance?
Yes, this is usually the best option. Using the services of a licensed and experienced Texas life insurance agent is advisable as they will get you a final expense policy that you can afford while meeting your required expectations. Since agents work closely with insurance companies, they can provide information on all the possible options, so you can choose the best final expense insurance policy that best fits your needs.
Can you Purchase Final Expense Insurance Through an Agent?
Yes, you can purchase a final expense life policy through an agent. In fact, all final expense life insurance must be purchased through a licensed agent. Even if you are buying a policy online or over the phone, a licensed agent is required to complete the transaction.
Why Do I Need an Agent for my Final Expense Plan?
When getting final expense life insurance in Texas, you need an agent to assess your needs and double check in case you can still qualify for any less expensive policy than the Final Expense. Based on the discovery, the agent:
Leverages their experience to find you an affordable policy
Handles the application process, which can be potentially complicated
Increase your chances of getting the best as they offer you various policy options from multiple insurance providers
Saves you from the unnecessary back and forth during the application
Offers unbiased advice, guidance, and assistance with the application process
Why is an Insurance Agent Important for Final Expense Life Insurance?
Getting your final expense life insurance through an experienced and knowledgeable Texas insurance agent is essential. The agent can ensure that you get final expense coverage that meets your long and short-term goals such as paying for medical bills or funeral expenses. Typically, an agent will compare the options available from different insurance companies and help you choose a suitable policy for your needs.
What Kind of Insurance Agents Work with Final Expense Life Insurance?
A final expense life insurance agent sells policies of the company they represent by encouraging you to consider the death benefit per policy. The two kinds of the insurance agents that work with final expense life insurance are:
Captive agents: These agents sell policies from only one insurance company. Since they only represent one company, the policy options they can offer are usually limited
Independent agents: These agents sell policies from multiple insurers. They can offer more options and ensure that the desiring applicant gets the best policy.
How Can I Find an Agent who is Proficient in Final Expense Life Insurance?
You can find an agent who is proficient in final expense life insurance, a type of permanent life insurance, in Texas through various methods, including:
Referrals: Ask family and friends with active FE policies for recommendations. They will be willing to do so if they are satisfied with their agents’ service level
Consumer Reviews: Check online for the comments left by previous users/clients on the agent’s website to get an idea of their proficiency. You can also take advantage of business rating websites to see the ratings of an agent before using their services
Check for TDI Sanctions: Call the Texas Department of Insurance (TDI) hotline at (800) 252-3439 to find out if any sanctions or disciplinary action has been made against the agent
How Can I Find an Agent who is Proficient in Implementing a Final Expense Life Insurance Properly?
You can find insurance agents proficient in implementing final expense life insurance properly in Texas by conducting an independent review on them after getting recommendations from families and friends. During your review, ensure that you verify their licenses before engaging them on final expense life insurance-related matters.
What Do Insurance Agents Do for you in Final Expense Life Insurance?
Insurance agents will help you throughout the application process for final expense life insurance. Having a knowledgeable agent to guide you through the process has many benefits, including:
Asking questions to understand your insurance needs and your financial capacity, to find you a policy that will provide sufficient enough coverage and that you can afford,
Recommending coverage that meets your need,
Provide after-sales services such as resolving issues with your insurer and engaging you on policy modification as may fit your future needs.
What Should your Texas Life Insurance Agent Do for you?
Your insurance agent should work with you to ensure you get a final expense life insurance policy best tailored to your needs at an affordable rate. If the agent realizes that you may qualify for a more affordable life insurance policy, the agent should alert you to it and offer it to you as an option. They should also explain the terms in your policy document, especially the gray areas.
How to Compare Final Expense Life Insurance Quotes
Comparing quotes from multiple insurers before deciding on your choice of final expense life insurance policy is essential in Texas. Insurance quotes vary widely in prices per company and specific product offerings. Your choice of policy will depend on the type of coverage you want, your budget, death benefit, and the type of life insurance policies you are able to find.
To compare final expense life insurance quotes in Texas, you can:
Obtain quotes from multiple companies: You can request policies from several insurance companies with coverage options close to your needs. You can get these quotes by visiting a local insurance office, phone, or online. When comparing them, ensure to consider the price, policy features, coverage options, death benefit, and reviews by third parties
Consider your needs: Determine why you need the policy and find quotes that match them
Review your received quotes: Review each quote you receive for final expense life insurance to confirm the accuracy and ensure the quotes are as similar as possible. The similarity of the coverages will help you make a fair comparison of all options
While you can compare these quotes personally at the initial stage, you will need to avoid pitfalls. Speak with an experienced and licensed Texas insurance agent for help.
How Many Final Expense Life Insurance Quotes Should I Compare?
Overall, the more quotes you get, the more chances you have to choose a suitable policy. Nevertheless, it is generally recommended that you compare at least three quotes of final expense life insurance with similar levels of coverage from different insurers.
How Important is to Have a Local Expert for Final Expense Life Insurance?
Having a knowledgeable local insurance agent to handle your final expense life insurance policy-related matters is important. You can always have a physical interaction rather than spending long hours on the phone trying to resolve an issue with your policy. A local agent is also familiar with the local final expense insurance marketplace and will be able to find you a more tailored coverage for your needs.
Does it Cost me Extra to Use an Insurance Agent for Final Expense Life Insurance?
No. Final life expense insurance agents do not charge applicants a fee for helping them to find a policy.
How Does a Final Expense Life Insurance Agent Get Paid?
Agent’s service comes at no cost to the insured. Final expense life insurance agents in Texas get paid salary or commissions depending on how they work. Employee agents get paid either a salary or commision, or a combination of both. Independent Texas life insurance agents get paid sales commission from the final expense insurer, from which you choose to get coverage. The commission is a percentage of the premium paid and is included in the final expense insurance cost, so insureds do not have to pay their agents additional fees.
Can I Buy Final Expense Life Insurance Coverage Online
Yes. You can buy final expense life insurance coverage online from insurers providing such services. Even if you choose to buy a policy online, the next step is usually a phone conversation with a state-licensed Texas life insurance agent, who will go over your needs, the selected coverages, and the legal disclaimers, prior to activating the coverage.
Can Anyone Get Final Expense Insurance?
Yes, anyone who falls between 50-85 years can get a final expense life insurance policy from most insurers in Texas. Foreign nationals in the state that meet the required criteria of life insurance companies are also not left out. Contact a state-licensed life insurance agent to help you determine your eligibility for final expense life insurance.
Can you Obtain Final Expense Insurance at Any Time?
Yes, you can, but your premium will continue to increase as you get older, so don’t wait so long that you no longer can afford coverage. The offered death benefit options may also reduce as you get older, although some insurers offer the same maximum death benefit to all applicants irrespective of their age. Make sure to engage a Texas insurance agent to guide you whenever you want to get a final expense life policy. A knowledgeable and experienced agent can help drive down your final expense insurance cost regardless of your age.
Can I Over Insure my Life with Final Expense Life Insurance?
Yes and no. If you have many dependents and you afford to hand down an additional death benefit, there is no reason not to - as long as you can afford it. For example, if you can afford to have a death benefit of more than $50,000, you would be able to give your beneficiaries the needed financial support after you pass away.
On the other hand, if you do not have dependents and you do not plan to leave an inheritance, you just need to cover your final expenses. Anything above your needs is excess insurance which costs you extra every month. Speak with a knowledgeable Texas-licensed insurance agent who can look into your needs and advise you on the amount of coverage to buy. Talking to an agent will ensure you are not unnecessarily over-insuring and paying more than you should on premiums.
What Happens if I Over Insure my Life with Final Expense Life Insurance?
Over-insuring your life with final expense life insurance will lead to an increase in the premiums you pay to keep the policy active.
Should I Over-Insure my Life with Final Expense Life Insurance?
The decision to over-insure your life with final expense life insurance depends on your needs. If you have dependents, it can be of advantage. If not, it might be a waste of money. Generally, over-insurance of any kind is not advised. Getting the optimal coverage to cover your final expenses (in this case, burial costs, end of life expenses, and left over final bills) is ideal. If you believe you need to over-insure, you should only do so after consulting with an experienced Texas-licensed life insurance agent about your final expenses expectations.
Is Buying Too Much Final Expense Life Insurance a Smart Decision?
This depends. Buying too much final expense life insurance in Texas can be a smart decision as it can serve as a financial cushion for your loved ones, especially if you are the breadwinner.
How Do I Renew my Final Expense Life Insurance?
Final expense life insurance is a permanent insurance that lasts your life and does not require renewal. You are only required to be consistent with premium payments to keep the policy in force, and guarantee the death benefit. If you have challenges paying premiums, it is advisable to contact the insurance company or your agent to reschedule your payment structure so as to keep the insurance coverage. For example, you can choose to modify a monthly payment to an annual payment structure and vice versa.
What Kind of Final Expense Life Insurance is Best?
The best final expense life insurance in Texas for you depends on your final expenses needs and the intended purpose of the policy after your death. Ultimately, you have to choose a simplified issue final expense life policy or guaranteed issue final expense life policy. Simplified-issue is cheaper, but if you do not qualify for it, Guaranteed Issues is the next best thing. Engage a Texas-licensed life insurance agent to guide you through the available options before making up your mind on a policy.
What Kind of Final Expense Life Insurance Plans are Available?
The types of final expense insurance policies available in Texas are:
Simplified issue final expense life insurance: This policy is targeted at people with relatively good health. It does not require underwriting or taking a medical exam
Guaranteed issue final expense life insurance: People with a pre-existing health condition can take advantage of this policy because it is almost guaranteed that they will get it. A few health questions get asked, but there is no medical exam or medical tests. The death benefit is guaranteed as long as the premium has been paid according to schedule. This policy can offer full coverage only two years after it is purchased.
Discuss your final expenses needs with a Texas-licensed life insurance agent and allow them to guide you through these options and help you choose which best fits your needs.
Can you Have Multiple Final Expense Policies?
Yes, you can have multiple final expense policies. Having more than one policy may be a strategy to pay for a particular need and increase your coverage and the death benefit. One policy may cover funeral costs, while another covers other end of life expenses. However, ensure you do not exceed the benefits that are way beyond your income or your actual needs. Always speak with a knowledgeable life insurance agent so you can opt for the best final expense insurance.
How to Reinstate Final Expense Life Insurance that you Stopped Paying?
Defaulting on the payment of the premium on a final expense life insurance policy will cause the policy to lapse. Most Texas insurance companies allow insureds 31 days, referred to as the grace period, after which they may cancel the policy. Insureds will continue to enjoy coverage until after the grace period. A lapsed policy means that you no longer have coverage, and your loved ones will not get the death benefit if you die unexpectedly after the grace period.
Insurance companies give policyholders up to five years after a policy lapse to reinstate it. A reinstatement application will likely require providing answers to the questions asked when the policy was purchased. You will still not need to take a medical exam. The premium for a reinstated policy may not be the same as the original policy, and the death benefit may be different. The price will get adjusted to your current age and other qualifying factors.
Approving a reinstatement application of a final expense life insurance policy is at the discretion of the insurance company. The earlier you apply for reinstatement the better your chances of getting it approved. The insurance company will most likely require you to pay outstanding premiums and penalties that may have accrued. In most cases, opting to reinstate a policy, even after years, is less expensive than getting a new one. You should contact a licensed and experienced Texas insurance agent to guide you on how to reinstate a final expense life insurance policy whose premiums you stopped paying.
How to Find Out What Final Expense Life Insurance I Have?
Your policy document will have information on the type of final expense life insurance you have. If you cannot retrieve the document, contact the insurance company or your insurance agent. They will be able to provide information on your policy.
How Do I Find Out my Final Expense Insurance?
To find out your final expense life insurance in Texas, you can:
Log on to your online account provided by your insurer
Call the insurance agent to provide the required information on your policy
Call the insurance company call center to speak to a support agent
How Do I Know if I Have Final Expense Life Insurance?
You will know you have a final expense life plan if you ever bought one. The debits on your account for premiums will also indicate that you have a final expense life insurance policy. No one can purchase this policy for you without your consent.
Can Final Expense Life Insurance be Combined with Other Insurance to Become More Affordable?
Yes, you can combine final expense life insurance with other insurance types to enhance your overall protection and ensure that your loved ones’ financial needs are completely met after you die. Combining life insurance policies under the same insurer can make it more affordable since they will most likely offer you discounts for bundling multiple policies. Speak to a Texas-licensed life insurance agent, with experience in final expense insurance work, on how you can get an affordable insurance policy when you bundle another policy with your final expense life policy.
Is Final Expense Insurance a Good Deal?
Yes, final expense insurance is a good deal, if you cannot qualify for any other coverage. Final expense insurance is one of the most expensive life insurance coverages that anyone can get. It provides a function of a last-resort coverage, and the insured pays extra for waiting too long in life to get affordable coverage elsewhere.
