5 Ways to Lower Your Final Expense Insurance Costs

Why Final Expense Insurance Costs Vary

Before diving into savings strategies, it's important to understand why premiums differ from person to person. Several factors influence your final expense insurance costs:

• Age: The younger you are when you apply, the lower your premium
• Health status: Better health often means lower rates
• Coverage amount: Higher coverage equals higher premiums
• Gender: Women typically pay slightly less due to longer life expectancy
• Tobacco use: Non-smokers enjoy significantly lower rates
• Policy type: Simplified issue vs. guaranteed issue affects pricing

Strategy #1: Apply Sooner Rather Than Later

Here's how age affects typical monthly premiums for $10,000 in coverage:

The takeaway: If you're considering final expense insurance, applying now locks in your current age rate forever. Your premium will never increase, even as you get older.

Strategy #2: Choose the Right Coverage Amount

Many people over-insure themselves, paying for more coverage than they actually need. Here's how to calculate your ideal coverage amount:

• Calculate actual funeral costs: Research average funeral costs in your area. National average is $7,000-$12,000, but this varies by location and service preferences.
• Add outstanding debts: Include any medical bills, credit cards, or small loans you want paid off.
• Consider cremation: If you prefer cremation over burial, your costs may be $3,000-$5,000 lower.
• Don't forget extras: Memorial services, travel for family, and probate costs typically add $1,000-$3,000.

For most seniors, $10,000-$15,000 provides adequate coverage. There's no need to pay for $25,000 if your actual needs are lower.

Strategy #3: Qualify for Simplified Issue (Not Guaranteed Issue)

If you can answer "no" to basic health questions (not currently hospitalized, no terminal illness, etc.), simplified issue policies can save you 20-40% compared to guaranteed issue policies.

Strategy #4: Quit Tobacco to Save 25-50%

Tobacco use is one of the biggest premium factors within your control. Smokers typically pay 25-50% more than non-smokers for the same coverage.

Most insurance companies consider you a non-smoker if you haven't used tobacco products for 12 months. That includes cigarettes, cigars, pipes, chewing tobacco, and sometimes vaping products.

Strategy #5: Compare Multiple Insurance Providers

Not all insurance companies price policies the same way. Different carriers specialize in different demographics and health conditions, meaning the same person can receive vastly different quotes from different companies.

Benefits of comparing multiple providers:

• Find the best rate: Quotes can vary by 30-50% between carriers for identical coverage.
• Discover health-friendly carriers: Some companies are more lenient on certain conditions like diabetes or heart disease.
• Identify special discounts: Some carriers offer discounts for annual payments, military veterans, or bundled policies.
• Get personalized recommendations: A licensed agent can match you with the carrier that best fits your unique situation.

Bonus Tip: Consider Annual Payment Discounts

Many insurance companies offer a 5-8% discount if you pay your premium annually instead of monthly. While this requires paying more upfront, it can save you $50-$100 per year.

Example for $10,000 coverage at $75/month:

• Monthly payment: $75 × 12 = $900/year
• Annual payment (5% discount): $855/year
• Your savings: $45/year