Are Final Expense Policies Renewable?

Final expense policies are permanent, so you shouldn’t have to worry about renewing.

How Final Expense Works

Final expense is a type of whole life insurance policy. This just means that, like a whole life insurance policy, your final expense coverage will last until you, the policyholder, pass away.

In exchange for this coverage, you’ll pay a monthly premium at an average of $40-$60 a month. As long as you keep up with these payments, your coverage is permanent.

There are two types of final expense policies — simplified issue and guaranteed issue. To be eligible for simplified issue, you will fill out a short 10-15 question medical questionnaire. As long as you have no terminal or pre-existing conditions, you’ll easily qualify. For guaranteed issue, you don’t have to disclose any health information to qualify — final expense, then, is a great option for older individuals without pristine health to get the coverage they need.

If you’re covered by a final expense policy and pass away, your beneficiaries will receive your death benefit. This is a payout issued on your behalf to cover your end-of-life costs like funeral planning and other payments. For final expense, this payment ranges from $2,000 to $50,000.

Do You Need to Renew?

As long as you pay your monthly premium, your policy will remain active. So, no, you shouldn’t ever have to renew your final expense policy.

What if you do miss your premium payments? One accidental missed payment will not automatically cancel your policy. Typically, you’ll receive a missed payment notice the first month, a warning the second month, and cancellation in the third or fourth month without payment.

If your policy is canceled, you may still be able to re-up your coverage. While not technically a “renewal,” knowing your options with missed payments may be helpful in case something unexpected happens.

You can also purchase riders to influence your death benefit. If you’re concerned about facing a serious illness or incident that leaves you unable to pay your premiums, you can add a waiver of premium rider. That way, you can still receive coverage if you’re unable to pay premiums due to health issues.

So, while you shouldn’t ever have to worry about renewing your final expense policy, you still have options surrounding your premium payments.

The Best Route for Your Coverage — Call Memorial

We have the insight to get you the final expense coverage you need. To learn more, reach out to the Memorial Insurance Group by sending us an email with our contact form.