Final expense insurance cost in Pennsylvania can vary considerably from one person to another. There isn’t a single price that applies to every Pennsylvania resident because insurance companies consider factors such as age, health, tobacco use, coverage amount, and the type of policy you choose.
For many families, the goal of final expense insurance is fairly straightforward: provide a manageable amount of life insurance that can help loved ones handle expenses after a death.
Understanding what affects the cost can help you determine whether final expense insurance makes sense for your situation.
Before comparing costs, you may want to start with our guide to final expense insurance in Pennsylvania to understand how this type of coverage works.
What Determines Final Expense Insurance Cost in Pennsylvania?
Funeral and burial expenses can vary considerably. The Federal Trade Commission provides consumer guidance on funeral costs and explains consumer rights when purchasing funeral goods and services.
Several factors can influence what you may pay for final expense coverage.
Age
Age is typically one of the biggest factors affecting life insurance premiums.
Generally, purchasing coverage at a younger age can result in a lower premium than purchasing the same amount of coverage later in life.
For example, the cost for someone applying at age 55 may be different from the cost for someone applying at age 70, even if they are seeking a similar death benefit.
Health
Your health can also affect the policies and rates available to you.
Many final expense policies use simplified underwriting. Instead of requiring an extensive medical examination, the application may ask a series of health questions and review other information permitted as part of the underwriting process.
Depending on the policy, certain health conditions could affect your eligibility, premium, or benefits.
Tobacco Use
Insurance companies commonly distinguish between tobacco and non-tobacco applicants.
Because tobacco use is associated with additional health risks, tobacco users may pay higher premiums for comparable coverage.
Coverage Amount
The amount of insurance you purchase matters as well.
A policy providing a $20,000 death benefit will generally cost more than a comparable policy providing a $10,000 death benefit for the same person.
This is why determining how much coverage you actually need should come before simply shopping for the largest policy available.
How Much Final Expense Coverage Do You Need?
There is no universal amount of final expense insurance that’s appropriate for everyone.
Instead, think about the expenses your family might have to handle if you passed away.
Those could include:
- Funeral, burial, or cremation expenses
- Outstanding medical bills
- Credit card balances or other debts
- Household expenses
- Other financial obligations you don’t want to leave entirely to your family
Final expense insurance is generally designed around relatively modest death benefits compared with larger traditional life insurance policies.
Someone who needs to replace years of income, pay off a substantial mortgage, or provide long-term financial support for dependents may need to consider other types of life insurance as well.
Does Final Expense Insurance Get More Expensive as You Age?
Age can have a significant effect on the premium offered when you purchase a policy.
Insurance companies are evaluating the risk of insuring someone based partly on life expectancy. As an applicant gets older, purchasing new life insurance generally becomes more expensive.
That doesn’t necessarily mean an existing policy’s premium will automatically increase every year.
Many final expense products are whole life insurance policies with premiums designed to remain level once the policy is issued, provided the required premiums continue to be paid. The exact terms depend on the individual policy and insurer.
That’s an important distinction.
The price of buying a new policy at age 70 may be higher than buying one at age 60, but that doesn’t necessarily mean a policy purchased at 60 increases in price every year.
Always review the actual policy terms before purchasing coverage.
Can You Get Final Expense Insurance With Health Conditions?
Potentially, yes.
One reason final expense insurance is popular among older adults is that some policies have less extensive underwriting than traditional life insurance.
There are several approaches insurers may use.
Simplified-Issue Life Insurance
Simplified-issue policies generally require applicants to answer health questions but may not require a traditional medical examination.
Eligibility and pricing depend on the insurer’s underwriting guidelines.
Graded-Benefit Policies
Some applicants who don’t qualify for immediate full benefits may be offered a graded-benefit policy.
These policies can limit the full death benefit during an initial period for certain causes of death. Because provisions vary, it’s particularly important to understand how the policy works before enrolling.
Guaranteed-Issue Life Insurance
Guaranteed-issue policies may accept applicants without health questions, subject to the insurer’s eligibility requirements.
However, these policies can have higher premiums relative to the coverage provided and may include a waiting or graded-benefit period.
Being able to qualify for a policy doesn’t automatically mean that policy is the best option.
Final Expense Insurance vs. Traditional Life Insurance
Final expense insurance is only one type of life insurance.
For some Pennsylvania residents, it may be appropriate. For others, a term or different permanent life insurance policy may provide a better solution.
Final expense coverage tends to focus on a smaller death benefit intended to help with end-of-life expenses and other financial obligations.
Term life insurance can provide substantially larger amounts of coverage for a specific period and may make more sense for someone who needs to protect income, cover a mortgage, or provide for children.
Other permanent life insurance products may be appropriate for people looking for lifelong coverage with different features.
The right choice depends on what you’re actually trying to accomplish.
Is Final Expense Insurance Worth It?
That depends on your financial situation and goals.
Someone who already has sufficient savings or life insurance may not need an additional final expense policy.
Someone who doesn’t have money specifically set aside for end-of-life expenses may value having coverage in place so family members don’t have to handle the entire financial burden themselves.
Before purchasing a policy, consider:
- How much life insurance you already have
- Savings available to your family
- Outstanding debts and obligations
- Expected funeral or burial preferences
- Your monthly budget
- Whether another type of life insurance provides better value
The objective shouldn’t simply be to buy a policy. It should be to find coverage that solves an actual financial need.
Comparing Final Expense Insurance in Pennsylvania
Insurance rates and underwriting requirements can vary among companies.
That means the first policy you encounter isn’t necessarily the best option available to you.
Comparing policies can help you evaluate differences in:
- Premiums
- Death benefits
- Health requirements
- Waiting or graded-benefit periods
- Policy guarantees
- Available coverage amounts
A licensed Pennsylvania insurance professional can help explain those differences and determine which available options may fit your needs.
If you’re just beginning your research, read our guide to What Is Final Expense Insurance? to learn more about how this type of coverage works.
Get Help Comparing Life Insurance Options in Pennsylvania
Choosing life insurance doesn’t have to start with selecting a company or policy.
It should start with understanding what you want the coverage to accomplish.
Keystone Coverage Advisors helps Pennsylvania residents understand their life insurance options and compare coverage based on their needs, budget, and circumstances.
Whether you’re considering final expense insurance or exploring other forms of life insurance, we can help you understand the differences before you make a decision.
Ready to explore your options? Contact Keystone Coverage Advisors for personalized guidance.
