At What Age Should You Not Buy Final Expense Insurance For Funeral Expenses?

We are frequently asked if an elderly person should buy final expense insurance for funeral expenses. Is there a cut-off age where it makes sense to purchase final expense insurance or not?

You can use the official Social Security site to calculate your life expectancy

According to data compiled by the Social Security Administration:

A man reaching age 65 today can expect to live, on average, until age 84.3.
A woman turning age 65 today can expect to live, on average, until age 86.6.

How To Purchase Final Expense Insurance

Generally, depending on your health, as you get over 65 years of age, your monthly premiums sky-rocket. If you haven’t acquired final expense insurance by then, you might be better off reviewing your assets and determining if you have adequate funds to cover a funeral and the related costs.

Also, understand that according to the National Funeral Directors Association the current average cost for an adult funeral was $8,300.

So, the quick answer is that you can buy final expense insurance, but it most likely doesn’t make any sense for an elderly individual.

There are several reasons for this:

1) As you get older you (surprise) get closer to death. The closer to death which you are will result in a higher monthly premium. At an advanced age, the premium can result in expenditures equal to or higher than the actual burial expenses you would incur.

2) Many insurance plans have a minimum vesting period, say six months. The carrier installs this ‘waiting period’ because they don’t want to sell a plan then immediately pay on it.

3) If the deceased as life insurance or an estate, either of those can pay for funeral costs.

As an aside – plan ahead and acquire either life insurance or final expense insurance before you need it.

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