Final expense (FE) life insurance policies are mostly reserved for older or unhealthy shoppers in Texas, and several factors determine their rates. Typically, most insurers offer nationwide coverage, so where you live can impact how much you pay for final expense insurance. Your age, health status, health history, coverage amount, and sex can also affect how much you pay for final expense insurance in Texas. By and large, women's FE insurance rates are usually lower than male rates because men are generally known to have a shorter life expectancy and pose higher risks to insurers than women. Final expense life insurance gives insureds two premium payment options: Limited payment and single premium options. With the limited payment option, you will pay premiums until a specific age, for instance 65, but still have the coverage till the age of 100. If you choose the single premium option, you will have to pay up your premium in a lump sum and enjoy coverage till you are 100 (If you live to see 100 years).
Although cost always comes to mind when considering final expense insurance, it should not be the most crucial parameter. Think about how many expenses you will leave behind and how much your loved ones will pay for funeral costs and medical expenses after your demise. While most final expense insurance policies in Texas range between $10,000 and $20,000, some insurers can offer a $50,000 policy. Depending on your age, your final expense insurance rate can go up as much as 30% or more if you are a tobacco user. Generally, most insurers adopt the same underwriting guidelines, and as such, it is best to engage a Texas-licensed life insurance agent to know your best options. The Texas Department of Insurance (TDI) oversees all insurance activities in the state, including final expense life insurance.
How much you should pay for final expense insurance in Texas depends on several factors, including sex, health status and history, coverage amount, and if you use tobacco. Generally, insurers charge men higher rates than women, although subject to other factors like health status. For instance, insurers in Texas charge an estimated $228 annually for men 55 years old who are determined to be in good health for a $5,000 death benefit. Women of the same age who are also determined to have good health pay an estimated $192 as FE insurance premium per annum for the same amount of death benefit.
While Texas's final expense insurance cost is not cast in stone, it is better to engage a credible life insurance agent when buying a policy. They understand the insurance market better and can help you save costs on premiums.
The more coverage of final expense insurance you purchase, the more premium you pay. However, the amount you pay will differ from what another individual will pay since the final expense insurance cost depends on different variables. Life insurance companies in Texas use the following variables to determine the cost of final expense insurance:
Note: The average life expectancy in Texas is 79.2 years old. Per the U.S. Census, the highest life expectancy is seen in Presidio County (at almost 89 years old), and lowest in Donley County (closer to 72).
Gender (Sex) - In Texas, insurers charge men a higher rate for final expense life insurance than women. Men are generally believed to have a shorter life expectancy and are considered higher risks than women. For example, where an insurer charges a male, 50 years old, $20 monthly for FE insurance, they may charge a female, who is also 50 years old, only $16.
Tobacco Usage - According to the Centers for Disease Control and Prevention (CDC), tobacco use reduces life expectancy. Consequently, life insurance providers consider smokers high-risk individuals and they will always pay more for final expense insurance. Generally, life insurance companies charge higher premiums for tobacco users.
Health Status/History - Your health status strongly determines how much final expense insurance coverage an insurer will approve. Typically, FE insurers classify their products into three health ratings, and each rating has a different pricing structure. These health ratings are:
Preferred (Level) - This rating has the least risk and the lowest cost possible. It does not have a waiting period before the policy takes effect.
Standard (Graded) - Standard rating is middle-tiered and costs slightly more than the best health rating (preferred). People who fall into this category are those who answer yes to at least one question when completing their applications. Depending on your insurer, it may and may not have a waiting period before the coverage begins.
Basic (Modified) - Insurers offer this rating to individuals with severe health issues. It is the riskiest of all the ratings and more expensive than the others. Basic rating usually has a two-year waiting period before it will pay out the death benefit.
Selected Coverage Amount - The amount of coverage you select while purchasing a final expense plan also affects the premium cost. Typically, your premium increases as coverage increases, while you pay less if choosing a small death benefit.
The average cost of final expense insurance in Texas varies by life insurance providers, even for the same policy type and coverage. Typically, insurers base FE insurance rates on various factors, including health status, age, gender, and lifestyle. Subject to these factors, the average cost charged by life insurance companies in Texas as annual premiums for final expense insurance is between $192 to $1,944.
After considering several factors, life insurance providers in Texas charge different amounts as final expense insurance premiums. Depending on your lifestyle (whether you use tobacco or not), gender, health status, and coverage, typical final expense insurance will cost between $192 to $1,944 annually.
Generally, your health status, sex, age, and tobacco use will determine how much premium you pay on final expense life insurance per $1,000 in coverage. So, if your insurer offers you $3.54/month per $1,000 and you want a $15,000 coverage, you will pay a monthly premium of $53.10 (15x $3.54).
Most insurers offer simplified issue FE insurance to persons considered as moderate-risk individuals at a lower price compared to guaranteed issue FE life insurance, although subject to age, health, sex, and lifestyle. For instance, for a simplified issue FE policy, a 47-year old non-smoker would pay less premium than a 47-year old smoker with a guaranteed issue FE policy.
The cost of guaranteed issue final expense insurance policies is fixed based on your age when buying them, unlike the cost of other life insurance policies that change with other variables. For instance, if you are male and 70 years old, you will pay an estimated $54.00 for a $5,000 FE coverage. However, if you are female and other variables remain unchanged (70 years old and $5,000 FE coverage), you will pay an estimated $41.21.
The amount you pay as a premium on final expense insurance is usually the price offered by your insurer after considering the variable factors, including your age, gender, lifestyle, and health. The final expense insurance coverage amount (death benefit) you choose is also a key factor used by insurers in determining your premium cost.
The average monthly cost of final expense life insurance in Texas is $50 to $100, and people usually choose coverage of $10,000 in face amount. However, your monthly final expense insurance premium might be lower or higher depending on your age, health, gender, lifestyle, and purchased death benefit coverage amount.
If you fall between the age bracket 50 to 59, the amount you pay for final expense life insurance will depend on some factors, including age, gender, and the coverage amount. If you are female, between the ages of 50 and 59, a life insurance company will charge you the following estimated values as premium for FE insurance for the stated coverage amount:
$20 - $21 for a $5,000 coverage
$37 - $39 for a $10,000 coverage
$54 - $57 for a $15,000 coverage
$70 - $74 for a $20,000 coverage
For a male between ages 50 to 59, an insurer will charge the following estimated amount as monthly final expense life insurance premium:
$26 - $29 for a $5,000 coverage
$49 - $54 for a $10,000 coverage
$72 - $79 for a $15,000 coverage
$95 - $104 for a $20,000 coverage
Ultimately, men would have to pay more than women because men are generally believed to have a shorter life expectancy, hence are a higher risk to insurers.
Depending on your age and gender, you should pay between $35 and $1,141 monthly as a final expense insurance premium for a $20,000 coverage. While the amount you pay may be lower or higher, you typically tend to spend more on keeping your policy active as you get older.
If you purchase a final expense insurance policy with a $15,000 coverage amount, you should pay the insurer an estimated $27 to $856 monthly premium, depending on your age and gender.
Most insurers will charge you between $20 and $572 as a monthly premium for a final expense insurance policy with a $10,000 coverage depending on your gender and age.
For a $5,000 final expense insurance coverage, you should expect to pay your insurer between $12 and $274 as a monthly premium depending on your age and gender.
Generally, final expense insurance premium costs vary from one insurance company to the other and are determined by certain factors, including your lifestyle, age, gender, and the purchased coverage amount. Hence, you should engage the services of a Texas-licensed life insurance agent when buying a final expense policy. They are experienced and have a better understanding of the insurance market and will help you save costs on premiums by choosing a quote that best fits your needs.
Deductibles do not apply to any life insurance product, including final expense insurance. Deductibles are typical with causality, health, and property insurance products, but not life insurance.
Although it is easier to get a final expense insurance policy than many other life insurance policies, it is usually more expensive than its peer alternatives. Final expense insurance is mainly for seniors who are not in perfect health and find it difficult to get any other life insurance products. In many cases, final expense becomes their best alternative, although costly. This policy is expensive because it accommodates typically high-risk individuals. Hence, insurers charge policyholders much higher premium amounts to cover such high risks when the policyholders die.
While it is expensive, having a final expense insurance policy in Texas may be your best bet, especially if you have severe health issues. It guarantees to pay your end-of-life expenses and relieves your relatives and friends from having to pay for your funeral. If you intend to purchase a final expense policy in Texas, make sure to employ the services of a knowledgeable and licensed life insurance agent who has access to multiple insurers and insurance types. They may be able to help you find a plan that fits your needs without you having to break a bank.
While final expense insurance is generally expensive, your policy cost may be so high due to one or more of the following reasons:
You purchased the policy at old age - As you grow older, insurers consider you high-risk and charge you higher than a younger person for a FE insurance policy. Insurance is built on statistics, and if your current age is past the highest average life expectancy in your county, the cost of insurance will be high For instance, you will pay more if you enroll in the policy at age 80 than if you had done so at 50. You can avoid paying high premium amounts for final expense insurance by purchasing a policy earlier in life.
You suffer from a severe health condition - Insurers will charge you a higher premium amount if your health is not in a good state when purchasing a final expense insurance policy. This is because you pose a high risk to insurers in such a state.
You are male - Generally, men have a shorter life expectancy than women and are often considered higher risk than women in life insurance. Hence, insurers tend to charge them more for final expense insurance.
Your lifestyle - For instance, if you use tobacco (cigarettes, smokeless, chewing, or any other kind), insurers will charge you more for final expense insurance than a non-smoker because they consider you a high-risk individual. Tobacco users are often assumed to develop certain illnesses faster than non-users.
You chose a high coverage amount - If you selected a high death benefit amount in your final expense insurance policy, you cannot expect to pay the same premium amount as another person with lesser coverage. This is especially true where other factors remain constant.
Once you purchase a final expense insurance policy, the rates do not increase or decrease. If you choose the limited payment option, you will pay premiums until a specific age and enjoy coverage till you are 100. Single premium option allows you to pay up your premium in a lump sum and still have coverage until you turn 100. Typically, the premium amount you pay is based on your circumstances before buying the policy. However, to keep your policy active and ensure that your beneficiaries can get the death benefit after your demise, you have to pay premiums until you pass away.
No. The life insurance claim is made by the beneficiaries after the insured person dies. Once the claim is paid out, the policy ceases to exist.
The policy will end when beneficiaries file a death claim, and the insurer pays out the death benefit after the demise of a final expense insurance policyholder.
No. Final expense insurance premiums do not go up or down, regardless of what happens to you after purchasing the policy. The amount you pay in premium is usually based on your circumstances before buying the policy. Hence, if your health worsens after buying a FE policy, it will not affect your monthly premium cost.
Such is not going to happen. Your insurer will not change the premium on your final expense insurance policy. You will only pay the agreed amount stated in your policy document as a premium for the rest of your life regardless of what happens after purchasing it. If required, you may engage a Texas-licensed final expense insurance agent and seek more clarification on this.
Simplified issue final expense insurance is the cheapest of the two FE insurance types. It offers more coverage even at a lower price than a guaranteed issue FE policy. Simplified issue FE insurance is more affordable because people who buy the policy are usually healthy and considered a moderate risk by insurers.
Involving a Texas-licensed final expense insurance agent when purchasing a policy is recommended. An agent with access to multiple insurers and types of policies can help you choose the cheapest option to meet your final expense insurance needs.
No, the cost of final expense insurance does not go down over time. Typically, you pay the same premium amount, often based on the prevailing circumstances when buying the policy, throughout its active term. Life insurance experts recommend purchasing a FE policy at a younger age to enjoy a low premium throughout the policy's term (till you die). For instance, if you buy a final expense insurance policy at age 50 and pay $26.49 as the initial premium, you will pay the same amount even when you turn 80.
An alternative way to save on FE life insurance later in your life is by purchasing Limited Payment or Single Premium policies. Both allow you to make payments earlier in life and not pay any premiums later.
Having a Limited Payment Final Expense policy allows you to pay up your premiums up to a certain age, for example 65 years old, and then you have the coverage until the age 100, without the need to make any more payments. Single Premium Final Expense gives the insured an option to pay for coverage in one lump-sum payment, with coverage until 100 years old.
Consult with an experienced and knowledgeable final expense life insurance agent in Texas if you intend to buy a policy. A qualified professional can help you save costs on final expense insurance.
You only need to get the amount of final expense insurance enough to cover your final expenses when you die when you consider buying a FE policy in Texas. However, you may have to tailor this need to your budget for end-of-life expenses, including funeral costs and medical bills. The average cost of a Texas funeral is around $6,200, with the lower range at near $5,000 and the highest at about $12,000.
You may not need more than $15,000 in final expense insurance if your goal is only to pay for funeral costs and the final medical expenses. However, if you need it for other reasons like paying off debts and your children’s college tuition after you die, you may need much more than $15,000 in FE insurance. If you need to leave more than $20,000 in death benefit to your beneficiaries, you may need to consider other types of life insurance policies.
You must consider your specific needs, risk level, final expense budget, and ability to pay premiums for a long time in determining how much final expense insurance coverage (death benefit) you may need. If you have severe health issues, insurers consider you a high-risk individual, and you may be able to get a guaranteed issue FE insurance policy with coverage between $5,000 and $25,000. On the other hand, you may get up to $50,000 in simplified issue FE insurance coverage if you have perfect health because you will pose lesser risks to your insurance provider.
It is essential to discuss your needs with a credible and experienced Texas-licensed life insurance agent to determine how much FE coverage you need. They understand how final expense insurance works and can help identify your needs, and can suggest the coverage that best suits your needs.
In Texas, you cannot get final expense life insurance through your employer or any group/association. Employer-sponsored life insurance is usually done as Term Life, with rare cases as Whole Life. However, you may purchase it as a supplemental plan to your employer-sponsored plan if you need more coverage explicitly tailored to cover final expenses, including your funeral costs and medical bills after you die. If it were possible to get this policy through an employer or association like group insurance, it would be cheaper than individual policies.
You can save on final expense insurance by getting it when you are younger and healthier. Usually, combined with other factors, life insurance providers consider a person's age in relation to their risk level when billing for final expense insurance. Speak with a knowledgeable independent life insurance agent in Texas for other possible ways to save on final expense insurance.
No, you cannot negotiate the price of final expense life insurance. Each insurer uses their own model of pricing based on the statistical risk factors. After applying for coverage, you get rated based on your health, age, and other factors. This evaluation places you into a certain group and price level, based on your risks. Once you get rated into a group, if you do not agree with the ruling, some insurers may allow a re-evaluation of the risks.
Make sure to discuss this with an experienced life insurance agent, who has access to multiple competing insurers and is familiar with how the evaluation system works and can be modified.
The best way to save on final expense insurance in Texas is to engage the services of a licensed and knowledgeable life insurance agent, who has experience with multiple insurers and can advise you on the best options that fit your needs and financial menas.
Life insurance experts recommend purchasing coverage when you are younger, especially considering that FE premium amounts usually do not change. Buying it early in life saves you much more money than getting it at old age. You can also get quotes from multiple life insurance providers and select the most affordable one. However, you should involve a licensed agent when doing this.
If you cannot afford final expense insurance, you can save for final expenses through Social Security or a Medicare Medical Savings Account (MSA), however small, but consistently. In most cases, Social Security is not a substantial amount; still, it may provide a death benefit for some of your final expenses. An MSA typically sets up a bank account to cover your health expenses. However, the amount left in the account forms a part of your estate when you die. While the amount left may not cover all costs, your loved ones may use such funds to pay part of your final expenses.
Final expense insurance requires regular payment of premiums. Hence, it is impossible to keep the policy active if you do not have money. However, consult with a Texas-licensed insurance agent to find out if there are possibilities of getting a final expense or any other life insurance policy that you can afford.
Final expense life insurance providers in Texas usually offer two premium payment options. These are:
Limited Payment Option
Single Premium Option
The limited payment option permits you to pay premiums until a certain age with coverage until 100. In contrast, with the single premium option, you pay up your premium in a single (lump sum) payment and still enjoy coverage until 100. Whichever option you choose, you may not save a dime on costs and may even overpay beyond your death benefit, especially if you pay upfront (single premium) and die earlier than thought.
Available discounts for final expense insurance in Texas differ among insurance providers and are usually subject to eligibility where they (discounts) exist. Some insurers offer discounts for members of certain organizations. Others do not provide discounts at all.
You can speak to a Texas-licensed insurance agent to find out if your insurer offers discounts for final expense insurance and confirm their requirements if they do. When buying a final expense policy in Texas, consulting with an experienced life insurance agent can help you save on costs because they understand the market dynamics and pricing. They also know the best products to suit your needs and can advise how to bundle different coverages to qualify for discounts and save on costs.