10 Questions to Ask Before Buying Final Expense Insurance

Purchasing final expense insurance is an important decision that affects your family's financial security. Before committing to a policy, make sure you understand exactly what you're getting by asking these crucial questions. Also be sure to read about how to avoid insurance scams.

1. What Type of Policy Is This?

Understand whether you're purchasing:

• Simplified issue: Requires health questions, lower premiums, immediate coverage
• Guaranteed issue: No health questions, higher premiums, waiting period
• Modified whole life: Hybrid with partial immediate coverage

Each type has different benefits and limitations that affect your coverage. Read our comparison of guaranteed vs. simplified issue for more details.

2. Is There a Waiting Period?

This is critical, especially for guaranteed issue policies:

• What is the waiting period length? (Usually 2-3 years)
• What happens if I pass away during the waiting period?
• Will my beneficiaries receive a full benefit, partial benefit, or just return of premiums?
• Are there any exceptions for accidental death?

3. Will My Premiums Ever Increase?

True whole life final expense policies have level premiums that never increase. However, some policies may have:

• Annual rate increases
• Rates that increase at certain ages
• Premiums tied to health status changes

Get written confirmation that your premiums are guaranteed to stay the same.

4. Can My Policy Be Cancelled?

Understand the policy's permanence:

• Is this a guaranteed renewable policy?
• Can the insurance company cancel for any reason?
• What happens if I miss a payment?
• Is there a grace period for late payments?

5. What Is the Financial Rating of the Insurance Company?

Your insurance is only as good as the company backing it:

• What is the company's A.M. Best rating? (A or better preferred)
• How long has the company been in business?
• Is the company licensed in your state?
• Has the company ever failed to pay claims?

6. How Quickly Are Claims Paid?

Your family will need funds quickly after your passing:

• What is the typical claim processing time?
• What documentation is required?
• Are there any circumstances that could delay payment?
• Is there an expedited payment option for funeral expenses?

7. What Are All the Costs?

Make sure you understand the full price. Learn about current funeral costs to help estimate your needs:

• What is my monthly/annual premium?
• Are there any policy fees or charges?
• Is there a fee for paying monthly vs. annually?
• Are there any rider costs included?

8. What Exclusions Apply?

Know what's not covered:

• Is suicide excluded? For how long?
• Are there exclusions for dangerous activities?
• What about death due to drug or alcohol use?
• Are there any geographic restrictions?

9. Can I Change or Cancel My Policy?

Understand your options if circumstances change:

• Is there a free-look period to cancel? (Usually 30 days)
• Can I increase my coverage later without new underwriting?
• What is the surrender value if I cancel?
• Can I change my beneficiary at any time?

10. Who Is Selling Me This Policy?

Verify your agent's credentials:

• Is the agent licensed in your state?
• Do they represent multiple insurance carriers or just one?
• How are they compensated? (Commission-based?)
• Can they provide references or reviews?

Bonus Questions to Ask Yourself

• Have I calculated my actual final expense needs? Use our guide on choosing the right coverage amount
• Can I afford these premiums for the rest of my life?
• Have I compared quotes from multiple companies?
• Have I discussed this decision with my family?
• Am I being pressured to make a quick decision?

Get Honest Answers

At ClearPath Final Expense, we believe in complete transparency. Our licensed agents will answer all your questions honestly and help you find the right policy for your needs—not just the one that pays the highest commission. Contact us today for a no-pressure consultation.