Start with a simple question:

“What do I want this money to do?”

For many people, the goal is to help cover:

• Funeral or cremation expenses
• Burial costs
• Medical or other final bills
• Credit cards or other debts
• Money they want available for their family

Then look at what you already have.

You may already have savings, existing life insurance, or other assets that can handle some of these expenses.

You may not need as much insurance as an advertisement suggests.

You may see advertisements promising guaranteed acceptance or insurance with no medical exam.

That can be helpful for someone who has difficulty qualifying for other coverage.

But guaranteed-issue coverage can also come with higher premiums or a waiting/graded-benefit period.

If you're reasonably healthy, it can make sense to compare other types of coverage before deciding.

This is one of the most important questions seniors should ask.

Some policies provide the full death benefit immediately. Others may provide a reduced or graded benefit during the first few years.

Ask: “Exactly how much would my beneficiary receive if I died during the first year?”

Then ask about the second and third years.

Don't assume the words “life insurance,” “burial insurance,” or “guaranteed issue” tell you what the policy actually pays.

The policy contract does.

A monthly premium tells you only part of the story.

For example:

$60 per month = $720 per year

Over 10 years: $7,200

Over 20 years: $14,400

That's why I encourage seniors to ask not only:

“Can I afford this each month?”

but also:

“How much will I have paid over time, and what am I guaranteed to receive?”

Ask the agent to clearly identify:

• Your guaranteed death benefit
• Your guaranteed premium
• Any waiting or graded-benefit period
• What happens if you stop paying
• Any guaranteed cash or surrender values

Don't confuse a projected value with a guaranteed value.

Those are two different things.

Many seniors understandably like the idea of applying without an exam.

But no medical exam and guaranteed issue are not necessarily the same thing.

Some policies use simplified underwriting, which may involve health questions but no traditional medical exam.

Depending on your health, that may give you access to better pricing or more favorable benefits.

That's why your health history matters when comparing policies.

It can be tempting to think:

“More insurance must be better.”

Not necessarily.

If your goal is to provide $10,000 or $15,000 for final expenses, buying substantially more coverage may simply mean paying a higher premium for money you don't actually need.

Determine the amount that accomplishes your goal and fits comfortably within your budget.

Retirement income can change.

Before buying, ask:

“What happens if I can no longer afford this premium five or ten years from now?”

Depending on the policy, there may be cash value, surrender value, reduced benefits or other provisions.

This is something you want to understand before you need to use it.

If you already own life insurance, don't cancel it simply because someone offers you another policy.

Your existing policy may have features, pricing or guarantees that would be difficult or expensive to replace at your current age.

Compare the old policy and the new policy first.

TV and online advertisements can make final expense insurance sound very simple:

Low monthly payment.

Easy application.

Guaranteed acceptance.

But the advertisement usually isn't where the important details are.

Before buying, you should know:

• What you're paying.
• What is guaranteed.
• What your beneficiary receives if you die early in the policy.
• What happens if you stop paying.
• And whether another policy may be a better fit.

A Simple Example

Here's a hypothetical example of a 65-year-old female looking for $15,000 in coverage.

Suppose two carriers offered the following:

Hypothetical example only — these are not actual quotes.

At first glance, Plan B looks better because the monthly premium is lower.

But Plan B has a graded benefit during the first two years.

So which policy is actually better?

That's why comparing final expense insurance isn't as simple as choosing the lowest monthly premium.

The Five Questions I Would Ask Before Buying

1. What is my guaranteed death benefit?
2. Is the full benefit available immediately?
3. What would my beneficiary receive if I died during the first two years?
4. Is my premium guaranteed for life?
5. Are there other policies I should compare before I decide?

If the answers aren't clear, keep asking questions.

You should understand what you're buying before you buy it.