When you die, your beneficiary files a claim with the insurance company by submitting a death certificate. The insurer typically pays the death benefit within 5-10 business days. The money is paid tax-free and can be used for any purpose.
Filing a final expense claim is straightforward. Your beneficiary contacts the insurance company, provides a certified copy of the death certificate, and completes a simple claims form.
The death benefit is paid income tax-free to your beneficiary. They can use the money for any purpose — funeral costs, medical bills, daily living expenses, or anything else. There are no restrictions on how the benefit is spent.
Make sure your beneficiary knows about the policy and has a copy of the policy number and the insurance company contact information. Many families miss out on benefits simply because they did not know a policy existed.
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Final expense insurance is a type of whole life insurance designed to cover end-of-life costs such as funeral expenses, medical bills, and outstanding debts. Policies typically range from $5,000 to $50,000 and do not require a medical exam. Read more
Most people need $10,000-$25,000 in final expense coverage. The average funeral costs $7,000-$12,000, plus you should factor in outstanding medical bills, credit card debt, and any other final expenses you want covered. Read more
Life insurance death benefits are generally not subject to federal income tax. Your beneficiaries receive the full payout tax-free. However, if the policy is part of a large estate, estate taxes may apply for estates exceeding the federal exemption. Read more
Compare rates from top final expense insurance carriers.