California Final Expense Life Insurance: 2024 Update + FAQs
Posted in Insurance By State last updated on December 4, 2023
As seniors in California age, it’s important to plan for their financial future. One option is to invest in final expense life insurance, which can provide much needed funds during difficult times.
This type of policy pays out a lump sum benefit upon the insured person’s death and can be used to cover funeral expenses or other costs related to end-of-life care.
In this blog post, we will discuss what California final expense life insurance entails, sample rates available for male and female seniors in California, average funeral costs throughout the state as well as leading causes of death among senior citizens living here.
We will also preview the best carriers offering these policies within the state’s borders so that California seniors can make an informed decision on the final expense life insurance needs.
Table of Contents
- What is Final Expense Life Insurance?
- Sample Rates for Male and Female Seniors in California
- Funeral Costs in California
- Leading Causes of Death Among Seniors in California
- Best Carriers for Final Expense Life Insurance in California
- Frequently Asked Questions
- Next Steps
What is Final Expense Life Insurance?
Final expense life insurance is a type of life insurance policy designed to help seniors cover end-of-life expenses.
It provides a lump sum death benefit that can be used to pay for funeral costs, medical bills, and other final expenses.
This type of coverage is typically less expensive than traditional whole or term life policies and offers modest coverage amounts.
Definition of Final Expense Life Insurance
Final expense life insurance, or burial insurance, is a form of permanent life insurance with a small amount of cash value. The death benefit pays out upon the insured’s death.
The policyholder chooses an amount they wish to insure themselves for (usually between $5,000-$50,000) and pays premiums until their passing. Upon the insured’s passing, the insurer will pay out the full face value to designated beneficiaries.
These policies are also known as burial or funeral insurance due to their primary purpose being covering end-of-life expenses such as the price of a funeral and memorial services.
Benefits of Final Expense Life Insurance
The main benefit offered by final expense, or burial insurance for seniors, is financial protection for loved ones left behind after someone passes away.
By providing a lump sum payment upon death, this type of policy helps families cover any associated costs without having to worry about where the money will come from.
Additionally, these policies are generally easier to qualify for than other types since there isn’t usually an extensive underwriting process involved in obtaining them.
However, it should be noted that most carriers do require you answer health questions during the application process.
Key Takeaway: Final expense life insurance provides financial protection for loved ones left behind after someone passes away. It is typically less expensive than traditional whole or term life policies and offers more flexibility in terms of the amount of coverage purchased.
Sample Rates for Male and Female Seniors in California
The average cost of burial insurance in California varies depending on the age and health of the policyholder.
Generally, younger seniors pay lower premiums than older seniors due to their lower risk profile. For example, burial insurance for 50 year olds is typically affordable.
In contrast, burial insurance for elderly individuals tends to cost more because our mortality risk increases as we age.
Let’s consider a couple sample rates. A healthy 65 year old male living in California would pay approximately $55 per month for a $10,000 final expense policy.
In comparison, a healthy 65 year old female California resident would be charged around $42 for the same coverage amount of $10,000.
There are several factors that can affect the cost of coverage for both male and female seniors in California.
Age
As mentioned, age is one of the most important factors when it comes to determining rates for final expense life insurance in California.
The older a person is, the higher their premium will be since they are considered more likely to die during the term of their policy.
Health
In addition, certain medical conditions or lifestyle choices such as smoking can also increase premiums significantly.
For most final expense life insurance applications, you will participate in a health interview. The process is simple and straightforward. Expect to answer general questions about your health.
For instance, you will likely be asked if you have been diagnosed with serious medical conditions such as cancer or a history of heart attack or stroke.
If your health is a major concern, do not worry. Guaranteed issue life insurance plans are always available to those who cannot qualify for coverage due to serious medical diagnoses.
Gender
Gender is another factor that affects rates for final expense life insurance in California.
Generally speaking, women tend to have lower premiums than men because they live longer on average and therefore pose less risk to insurers.
Discounts
Additionally, some carriers may offer discounts based on occupation or other criteria such as military service or membership in certain organizations, which could result in savings for eligible applicants.
Final Thoughts
In order to get the best rates on final expense life insurance in California, it is important to shop around and compare quotes from multiple providers before making a decision.
Working with an experienced independent agent who understands how different carriers calculate their rates can ensure that you are getting a fair deal from each company you consider purchasing coverage from.
By comparing sample rates for male and female seniors in California, it is clear that final expense life insurance can be an affordable option. Now let’s look at funeral costs in California to better understand the full cost of this type of coverage.
Key Takeaway: The cost of final expense life insurance in California is largely determined by age, gender and medical conditions. Shopping around for the best rates can help seniors save money, while an experienced independent agent can ensure they are getting a fair deal from each carrier.
Funeral Costs in California
When planning for a funeral, it is important to consider the costs associated with it. In California, funerals can range from $7,000 to over $20,000 depending on the services and products chosen.
Average Cost of Funerals in California
The average cost of a funeral in California is around $10,000-$12,000.
This includes all services such as:
- Cremation costs (if applicable).
- Embalming and preparation of the body for viewing or burial.
- Use of facilities for visitation and memorial service.
- Casket or other container.
- Hearse rental.
- Grave opening and closing fees.
- Cemetery plot purchase.
- Flowers and obituary notices.
Additionally, purchasing an outer burial container (vault) could add another $1,500 -$2,500 to the total cost.
Laws and Regulations Regarding Funerals in California
In addition to considering financial costs when planning a funeral in California there are also legal requirements that must be met before any arrangements can be made.
The state requires that death certificates be obtained from local health departments prior to making any arrangements with a mortuary or crematory facility.
Related – How to file a death claim with a life insurance company.
Additionally all pre-need contracts must meet certain criteria set forth by law regarding disclosure statements given by providers at time of sale as well as cancellation rights afforded consumers should they choose not to proceed with their plans after signing up for them.
Key Takeaway: Funerals in California can range from $7,000 to over $20,000 and average around $10,000-$12,000. To save money on funerals in California: Obtain death certificates prior to making any arrangements with a mortuary or crematory facility and read disclosure statements given by providers at time of sale.
Leading Causes of Death Among Seniors in California
According to the Centers for Disease Control and Prevention (CDC), the leading causes of death among seniors in California are:
- Heart disease
- Cancer
- Stroke
- Chronic lower respiratory diseases
- Alzheimer’s disease
- Diabetes
These six conditions account for nearly two-thirds of all deaths in California each year.
Most Common Causes of Death Among Seniors in California
Heart disease is the leading cause of death among seniors in California. It is responsible for more than one-third of all deaths annually.
Heart attacks and other cardiovascular diseases can be caused by high blood pressure, smoking, obesity or a lack of physical activity.
Cancer is another major cause of death among seniors in California. The most common types include lung cancer, breast cancer and colorectal cancer.
Other forms such as prostate cancer are also prevalent among older adults living in the state.
Stroke is also a major killer amongst senior citizens living in California; it accounts for about 8% of all deaths each year.
Strokes occur when there’s an interruption to the blood supply to part or all of your brain due to blocked arteries or bleeding from damaged vessels within your skull cavity that affects brain function temporarily or permanently depending on its severity level..
Chronic lower respiratory diseases such as COPD (chronic obstructive pulmonary disorder) are also common amongst elderly Californians; they account for around 6% percent annual fatalities statewide according to CDC data reports.
This condition occurs when airways become narrowed due to inflammation which makes breathing difficult over time if not treated properly with medication prescribed by a doctor .
Alzheimer’s disease has been identified as another significant contributor towards mortality rates amongst senior citizens living within this state. It accounts for approximately 5% of annual fatalities according to CDC statistics.
This progressive neurological disorder slowly destroys memory, thinking skills, language abilities, judgement and behavior while eventually leading towards total disability & eventual death if left untreated.
Best Carriers for Final Expense Life Insurance in California
When choosing a carrier for final expense life insurance in California, it is important to consider the company’s financial strength and customer service ratings.
It is also essential to look at the types of policies offered, as well as any discounts or special offers available.
American Amicable has an A rating from AM Best and offers competitive rates on their final expense life insurance policies. They have excellent customer service with knowledgeable agents who can help you find the best coverage options for your needs.
Mutual of Omaha has been providing quality life insurance products since 1909 and has earned an A+ rating from AM Best. Their final expense life insurance policies provides coverage up to $40,000. Plus they offer additional benefits such as accelerated death benefit riders.
SBLI is another great option when looking for final expense life insurance in California. With an A- rating from AM Best and competitive rates on their policies, SBLI also offers free access to the Sequoia Funeral Concierge Plan, a helpful funeral planning program.
Guarantee Trust Life has been around since 1936 offering quality products backed by strong financial stability earning them an A- rating from AM Best. Their final expense life insurance policy covers up to $25,000 in protection and only asks five health questions during the application process.
Key Takeaway: When choosing a final expense life insurance carrier in California, it is important to consider the company’s financial strength, customer service ratings and policy offerings.
Frequently Asked Questions
What is the average cost of final expense insurance?
The cost of burial insurance varies depending on an applicant’s state of residence, age, gender, health status, and coverage amount.
Generally, policies start at around $10 per month for a small policy with limited benefits. For larger policies that provide more comprehensive coverage, premiums can range from $50 to $100 or more per month.
It is important to shop around and compare quotes from different insurers in order to find the best value for your money.
Is final expense life insurance worth it?
Yes, almost always, final expense or burial insurance is worth it. It can be a valuable asset for seniors over the age of 50.
This type of life insurance provides peace of mind that their loved ones will not have to bear the financial burden associated with end-of-life expenses such as funeral costs and medical bills.
Final expense policies are generally more affordable than traditional life insurance policies, making them an attractive option for those on a fixed income or limited budget.
Additionally, they offer coverage without having to undergo medical exams.
At what age should you buy final expense insurance?
Final expense insurance is designed to cover the costs associated with end-of-life expenses, such as funeral and cremation costs.
The best time to buy coverage was yesterday. The second-best time to buy final expense is today. As long as someone depends on you financially, or you do not have funds to pay for your funeral, you need a policy.
It is typically recommended that individuals purchase final expense insurance when they reach their 50s or 60s. This is because this type of policy can help ensure that your loved ones are not burdened with these expenses in the event of your passing.
Additionally, premiums for final expense policies tend to be lower at a younger age, so it makes sense to purchase coverage sooner rather than later.
What happens if you can’t afford a funeral in California?
If you cannot afford a funeral in California, there are several options available. Don’t feel like you need to search for free burial places.
The first is to apply for financial assistance through the Department of Social Services or other government programs such as Medi-Cal.
Additionally, some charities and non-profit organizations may be able to provide financial help with funeral costs.
Final expense policies are more affordable than you may think and can go a long way in providing funds to pay for your funeral.
Finally, if all else fails, it is possible to negotiate payment plans with the funeral home that can make it easier to pay for a funeral over time.
Next Steps
Final expense coverage provides peace of mind knowing that your loved ones will not be burdened with the price of a funeral and other final expenses.
When shopping for California final expense life insurance, it’s important to compare rates from different carriers and make sure you are getting the best coverage at the lowest possible price.
Knowing what kind of policy you need, understanding burial laws in California, and being aware of leading causes of death among seniors can help you make an informed decision when selecting a policy.
Seniors in California need to plan for the future and secure their financial security. iSeniorBenefits offers a range of life insurance products tailored specifically to meet the needs of seniors, including final expense, Medicare, health and cancer plans.
With these solutions, you can be sure that your loved ones are taken care of when you’re gone. Don’t wait any longer – contact us today to find out how we can help protect your family’s financial future.