Differences life insurance and final expenses insurance
Planning for your future doesn’t have to be complicated. If you’re thinking about how to take care of your loved ones or you just want to make things easier when the time comes, choosing the right insurance policy can give you peace of mind and confidence.
If you’re wondering how life insurance compares to final expenses insurance, this guide walks you through the key differences to help you make the choice that could be right for your needs, lifestyle and values.
What is life insurance?
Life insurance can support your family financially long-term, and can often include larger coverage amounts that can be used for mortgages, education, or to replace your income.
Life insurance offers broad protection, and is often used earlier in life when financial responsibilities and commitments are higher.
What are the main differences between life insurance and final expenses?
If you’re thinking about whether you should choose life insurance or final expenses insurance, it can be helpful to see the key differences side-by-side. While both types of insurance can provide financial support after you pass away, they serve different purposes and can be structured in different ways.
| Factors | FiftyUp Life Insurance | FiftyUp Final Expenses Insurance |
|---|---|---|
| Purpose | Supports ongoing financial needs | Covers funeral and end-of-life costs |
| Coverage amount | Up to $250,000 | $3,000 - $25,000 |
| Application process | No medical or blood tests required to apply, just answer 8 simple health questions over the phone | Guaranteed approval, no health exams |
| Benefits | Optional yearly cover increase (automatically increases by 3%) Advanced funeral payout of up to $15,000 (subject to approval) Coverage for terminal illness (receive 100% of your benefit upfront if you’re diagnosed with a terminal illness with less than 12 months to live) Any cause of death covered Double payout for accidental death | Guaranteed acceptance for Canadian residents (excluding residents of Quebec) aged 20 to 80 Immediate coverage for accidental death and for any cause after 12 months (excluding suicide for 24 months) Fast, quick payout No premium payments after 90 Triple payout for accidental death Early cash out, meaning once you turn 85 you can choose to end your policy and receive 75% of your benefit amount |
| Best suited for | Individuals with ongoing financial dependents | Canadians 50+ seeking simple coverage |
Depending on what you’re looking for, either type of coverage, or a combination, may be the right fit for you. Consider what you’re looking to protect and how much coverage you might need to help you inform your decision — and consider seeking our personal financial advice, too.
What is final expenses insurance?
Final expenses insurance (also known as funeral insurance) is an insurance policy designed to cover the immediate costs that can come with saying goodbye.
This can include:
- Funeral or cremation arrangements
- Memorial services
- Transportation and paperwork
- Small remaining bills or expenses
For example, FiftyUp’s Final Expenses Insurance offers coverage from $3,000 to $25,000, with guaranteed acceptance for Canadian residents aged 20 to 80 (excluding residents of Quebec). There are no medical exams or complicated forms required to apply, just a straightforward and simple application process designed to make you feel at ease.
What are the benefits of final expenses insurance?
Final expenses insurance can be a practical way to make sure your end-of-life expenses are taken care of even after you’re gone. It helps take some pressure off your family and loved ones during a difficult time, and also gives you peace of mind knowing the basics are covered.
Here’s what to expect from securing final expenses insurance directly from FiftyUp:
- It’s easy to apply: There’s no medical, blood test or long list of questions to answer. You don’t have to jump through hoops to secure coverage.
- Approval is guaranteed: If you’re between 20 and 80 and live in Canada (excluding residents of Quebec), you’re eligible for final expenses insurance
- Funds are accessible fast: Your loved ones won’t be left in the lurch or navigating end-of-life expenses alone.
- Premiums are affordable: What you pay depends on your age and the amount of coverage you choose — it’s designed to be manageable.
- The level of coverage is flexible: From $3,000 to $25,000, you can decide what makes sense for you and your situation.
Final expenses insurance isn’t about planning for the worst-case scenario; it’s about taking proactive action to care for your family and whoever you’re leaving behind.
What are some of the drawbacks to final expenses insurance that I should be aware of?
Final expenses insurance is designed to cover immediate end-of-life costs like funeral fees, cremation costs, or other final expenses.
It’s a clearly defined product, and there are a few things to be aware of when deciding if it could be right for you:
- The coverage amount can be limited: Policies can range from $3,000 to $25,000. This can usually be enough for final expenses, but it’s not designed for larger financial commitments like repaying a mortgage or replacing income.
- It doesn’t include a savings component: Unlike some life insurance policies, final expenses insurance isn’t an investment product, and doesn’t build cash value over time.
For a lot of people, this level of coverage can be a helpful way to put a reliable plan in place to ensure your end-of-life expenses are covered in the event of the unexpected.
Can I have both life insurance and final benefits insurance?
If it feels right for you, you can hold both types of insurance at the same time. That means you can have life insurance in place to pay a substantial lump sum to support your family financially, along with final expenses insurance to ensure your family don’t have to worry about funeral costs.
If your focus is solely on peace of mind and making things easier for your loved ones, final expenses insurance may be all you need. It’s an important step you can take to be proactive and make life easier for your family after you’re gone.
Find the right coverage for you
There’s no right answer for everyone when it comes to insurance. The right type of coverage depends on your personal situation, your financial goals, and what kind of support you want to leave behind.
For some, that might mean a larger life insurance policy to help with long-term planning. For others, a more focused approach, like final expenses insurance, can be exactly what they need.
Get a free quote today
FiftyUp is here to make this part of end-of-life planning feel calm and clear. Final expenses insurance and life insurance is built for Canadians over 50 who want a reliable way to take care of their final expenses.