Yes, there is such a thing as a $5,000 life insurance policy. There are over 10 different companies that offer a $5,000 whole life insurance policy. Globe Life is the only company that offers a $5,000 term life insurance policy. In this article we are going to go over the type of policies available to you, how much it costs, best companies, the benefits and much more.
Table of contents
- $5,000 Life Insurance Policy Types & Options Compared
- Cost of $5,000 Final Expense Life Insurance
- Best Final Expense Life Insurance Companies for $5,000 Policy
- $5,000 Life Insurance for Seniors Enough Coverage?
- Health & Underwriting for a $5,000 Whole Life Final Expense Policy
- Your Needs Determine The Type of Life Insurance To Purchase
- Term Life Insurance & Whole Life Insurance Differences
- Benefits of a $5,000 Final Expense Insurance Policy
- Best Life Insurance Tips for Saving Money on Funeral Insurance
- How to Get a Final Expense Insurance Plan
- Common Policy Riders for Final Expense Coverage
$5,000 Life Insurance Policy Types & Options Compared
Now the only real options for a $5,000 life insurance policy are going to be final expense whole life insurance. Final expense life policies(burial insurance, funeral insurance, cremation insurance etc.) is permanent life insurance that never expires. These policies have level premiums (premiums never increase) and level death benefit (death benefit never decreases).
They do not require a medical exam to qualify and build cash value in addition to the policy coverage amount. They are designed to cover the cost of end of life expenses(burial expenses, funeral expenses, cremation expenses etc.). When you die the policy pays a tax free benefit amount to your beneficiary.
The beneficiary then uses the money to pay for final expenses and keeps anything left over to do as they see fit. $1,000 is actually the minimum amount of death benefit for final expense life insurance. The maximum amount of coverage when comparing companies is $50,000 for a burial policy.
Now the only other option you have for a $5,000 life insurance coverage is Globe Life. Globe sells a $5,000 term life insurance policy however seniors should beware of this plan. We have thoroughly reviewed them and that plan is an increasing term policy every 5 years. That means Globe will increase your monthly premiums on the policy every 5 years. If it becomes unaffordable you are forced to drop the coverage.
There is no benefit to buying life insurance with Globe for a $5,000 policy. The policy may start cheaper than a funeral insurance plan but over time will become far too expensive and has no cash value built into it.
Two Types of Final Expense Insurance
Now there are 2 different types of life insurance for a $5,000 funeral life insurance policy.
Simplified Issue Whole Life
This type of insurance has the lowest rates available to seniors in addition to no waiting periods. An applicant simply answers health questions on the application. This life insurance company will look at your health and prescription history to see if it matches up with your answers to the health questions.
If everything checks out you will be approved for coverage.
Guaranteed Issue Life Insurance
Life insurance rates for this type of permanent policy will always be higher. This is due to the fact that these policies don’t require a medical exam & no health questions. It is guaranteed burial insurance however since coverage is guaranteed there is a two year waiting period.
Now there is a return of premium feature built into guaranteed issue whole life policies. This means if you die within the two year waiting period the policy will pay the premiums you paid into it plus a certain percentage (typically 10%).
Cost of $5,000 Final Expense Life Insurance
Below is a table rate chart with sample monthly rates for a $5,000 burial life insurance policy for each age. Age, health and life style are the primary factors that determine your life insurance costs.
|Age||$5,000 Male Non Smoker||$5,000 Female Non Smoker||$5,000 Male Smoker||$5,000 Female Smoker|
Best Final Expense Life Insurance Companies for $5,000 Policy
The best final expense insurance companies for seniors are listed below.
Mutual of Omaha
Estimated Cost: $5,000 life insurance Monthly is $14-$50 for ages 50-80 years old.
American Amicable final expense coverage has very favorable underwriting and tobacco rates.
Estimated Cost: $5,000 life insurance Monthly is $15-$59 for ages 50-80 years old.
Transamerica burial insurance is perfect for obese applicants applying for life insurance. They do not have height and weight charts for their coverage.
Estimated Cost: $5,000 life insurance Monthly is $14-$52 for ages 50-80 years old.
Prosperity New Vista final expense insurance is perfect for seniors with heart conditions in most cases.
Estimated Cost: $5,000 life insurance Monthly is $18-$52 for ages 50-80 years old.
Aetna Accendo final expense insurance is great for applicants with breathing conditions.
Estimated Cost: $5,000 life insurance Monthly is $15-$52 for ages 50-80 years old.
Gerber Life Insurance
Gerber life final expense insurance is one of the lowest priced guaranteed issue policies on the market.
Estimated Cost: $5,000 life insurance Monthly is $18-$89 for ages 50-80 years old.
$5,000 Life Insurance for Seniors Enough Coverage?
Yes, a $5,000 life insurance policy for seniors is enough to cover the costs associated with a funeral and other final expenses. That being said it is ideal only for a cremation funeral service, if you want to do a burial with a casket we recommend a higher amount of life insurance coverage.
Health & Underwriting for a $5,000 Whole Life Final Expense Policy
In order to help you find the best funeral policy for your health profile use our table below. The table has each different health condition listed and will tell you if that specific condition will require a waiting period or no waiting periods.
|Health Condition||Eligible for No Waiting Period||Eligible Only for a Waiting Period|
|ADL’s(Assistance of Daily Living Eating, Dressing, Toileting, Bathing)||Yes||No|
|AIDS & HIV||No||Yes|
|Alzheimers & Dementia||No||Yes|
|Amputation Caused by Accident (No ADLS Needed)||Yes||No|
|Amputation Caused by Accident(ADL’s Needed)||No||Yes|
|Amputation Caused by Diabetes or Disease(No ADL’s Needed)||Yes||No|
|Amputation Caused by Diabetes or Disease(ADL’s Needed)||No||Yes|
|Assisted Living Facility||Yes||No|
|AFIB (Atrial Fibrillation)||Yes||No|
|Brain Tumer(Non Cancerous)||Yes||No|
|Coronary Bypass Surgery||Yes||No|
|COPD Chronic Obstructive Pulmonary Disease||Yes||No|
|Congestive Heart Failure||Yes||No|
|Drug & Alcohol Abuse||Yes||No|
|Obesity & Under Weight||Yes||No|
|Kidney Disease Stage 1 – 3||Yes||No|
|Kidney Disease Stage 4 – 5||Yes||No|
|Sickle Cell Anemia||Yes||No|
|TIA Mini Stroke||Yes||No|
Life Insurance for Parents & Family
If you are looking for final expense life insurance for parents you must have their consent to purchase burial insurance on them. In addition to this they must be present to answer health questions and perform signatures on the application. The same goes for burial insurance for siblings and other family.
Electronic signatures are the method used when buying a burial policy online.
Your Needs Determine The Type of Life Insurance To Purchase
Now keep in mind that your needs are what ultimately determine the type of coverage you need. Whole life and universal life have different features depending on what you intend to use them for. Universal life is typically used to build cash value in the policy as a funding vehicle for retirement. In addition to this it provides a higher amount of coverage but they typically require a medical exam for those types of permanent life insurance policies.
Below is our table listing the different uses each different type of whole life insurance as well as term insurance. Keep in mind traditional life insurance for seniors is difficult to get approved if you have pre-existing health conditions.
|Features & Requirements||Life Insurance||Burial Insurance|
|Definition||Broad term encompassing various types (term,universal,whole,final expense,indexed universal life insurance)||Final Expense Whole Life Insurance|
|Coverage Duration||Term or permanent||Permanent|
|Face Amount Range||$50,000 – $1,000,000 or more||$1,000 – $50,000|
|Purpose||Various purposes (income replacement, debt coverage, mortgage protection etc.)||Cover funeral and burial expenses|
|Medical Exam Requirement||Often required for higher amounts of coverage||No medical exam required|
|Underwriting||More strict due to higher coverage amounts||Liberal underwriting for seniors|
|Additional Riders||Available, depending on the policy||Available, such as accidental death, grandchildren, etc.|
|Cash Value||Varies based on policy type||Builds cash value|
|Payout Timing||Varies; can be immediate or based on policy terms||Typically pays out within 24 – 48 hours of death certificate|
|Beneficiary Usage of Payout||Flexible usage (burial, income replacement, inheritance, mortgage protection etc.)||Specifically for funeral expenses and related costs|
|Qualification Criteria||Health Assessment, age, lifestyle factors etc.||Health questions and checking of medical information|
Term Life Insurance & Whole Life Insurance Differences
Term life policies are typically more affordable than whole life policies. That being said they do not last your entire life which is why premiums are more affordable. Term means temporary while whole life insurance plans are permanent coverage that never expire.
So when it comes to Term insurance vs whole life insurance it is all dependent upon your needs. If you want to make sure a 20 year mortgage is covered incase you die unexpectedly a term policy would be perfect for you. If you want to build cash value at a high rate for retirement then Indexed Universal Life Insurance is the product for you.
This is why when purchasing life insurance it is important to know all your insurance options. You should have an idea of how much life insurance you need for your situation.
Benefits of a $5,000 Final Expense Insurance Policy
Now the benefits of a $5,000 life insurance for final expense also known as burial insurance are going to be listed in our table below. This type of whole life policy is very simple and straight forward providing peace of mind knowing your family will ne covered when you die.
This type of coverage is the best option for seniors on a fixed income wanting to cover funeral costs.
Best Life Insurance Tips for Saving Money on Funeral Insurance
Working with an independent insurance agent/broker is the best way to save money on burial insurance. Brokers shop the market with multiple companies based on your health & your needs. This means they can find you the most affordable policy that will approve you for coverage.
They can provide life insurance quotes from multiple companies to help you see the savings. Their knowledge of underwriting helps them determine exactly which policy is right for you. You do not pay anything extra by working with an agent vs policy providers.
If you work with a life insurance company directly they will only offer 1 policy to you (their only product) and if you cannot get approved for it you have nowhere else to look.
How to Get a Final Expense Insurance Plan
Work with us to get a burial policy by filling out our quoting widget for a burial insurance quote online. You can also call our number listed on our site and an agent will assist you. Below is a table detailing how our agents will help you apply for life coverage.
|Steps to Apply||Description|
|1. Speak with a Licensed Insurance Agent or Agency||In order to buy burial insurance you must speak with a licensed life insurance agent that sells the product. You cannot apply for majority of burial insurance products on your own.|
|2. Answer Health Questions & Provide Your Prescriptions||You must answer the health questions on the burial insurance application & provide your medications. The Life Insurance company will look at the Medical Information Bureau Health Report and run a Script Check on you using your Social Security Number provided on the application. This allows them to asses your risk and determine if they will approve you.|
|3. Provide the Name of your Doctor||The life insurance company will want to know the name of your doctor. In most cases they will never contact your doctor however, in some rare cases they can depending on what is found in the MIB reports.|
|4. Electronically Sign your Life Insurance Application||When applying for burial insurance online you will sign for your application using an electronic signature. Depending on the company you apply it will be a voice signature, e-mail signature or Text message signature.|
|Instant Decision of Approval or Denial||Burial insurance does not require a medical exam which means when you submit your application to the life insurance company it is the last step. Depending on which company you applied with you will receive an instant decision on your application. Some companies or situations may take a few days for a decision.|
Common Policy Riders for Final Expense Coverage
Policy riders are additional add-ons to your life policy that provide additional benefits. We have listed a few of them below keep in mind that not all companies offer these same riders. Some are exclusive to a specific plan and company.
Accelerated Death Benefit Rider
This what we would call living benefits which means you can borrow from your policy’s face amount. The rider usually only becomes active if you are diagnosed with a terminal illness.
Accidental Death Benefit Rider
Now this rider doubles the amount your policy pays out in the even of accidental death.