Sara Routhier, Managing Editor and Outreach Director, has professional experience as an educator, SEO specialist, and content marketer. She has over five years of experience in the insurance industry. As a researcher, data nerd, writer, and editor she strives to curate educational, enlightening articles that provide you with the must-know facts and best-kept secrets within the overwhelming world o...

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Leslie Kasperowicz holds a BA in Social Sciences from the University of Winnipeg. She spent several years as a Farmers Insurance CSR, gaining a solid understanding of insurance products including home, life, auto, and commercial and working directly with insurance customers to understand their needs. She has since used that knowledge in her more than ten years as a writer, largely in the insur...

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Reviewed by Leslie Kasperowicz
Farmers CSR for 4 Years Leslie Kasperowicz

UPDATED: Mar 28, 2022

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The Brief

  • Open care final expense plans are designed for funeral and other expenses at the end of life of the insured
  • The premiums paid under this plan remain unchanged during the policy period
  • The policyholder should ensure the death benefit payout is used according to their wishes

We know it’s a tough subject to discuss end-of-life expenses, but it’s worth it.

The basic idea of open care final expense plan is to provide money to your beneficiaries after you pass to cover the costs of your funeral and other end-of-life expenses.

These plans are great for those planning to spare their families the slap of huge funeral expenses. They also allow you to determine how much you want your plan to cost and how much money you want your beneficiaries to receive.

Does it sound interesting? 

Well, this article discusses how open care final expense plans work and all you need to know. Let’s jump right in. 

Understanding the Open Care Final Expense Plans

Open final expense insurance is a low-cost life insurance policy designed to cover final expenses and funeral fees. It’s meant for older adults who are ready to make end-of-life plans.

The final expense plan gives your family peace of mind in knowing that when you pass, there will be no extra financial burden on them. The policy provides a lump sum cash payment for funeral expenses, outstanding debts, and other end-of-life costs. Therefore, final expense insurance is an easy way to make sure that your family doesn’t strain with the financial burden associated with your death and funeral. 

Death is an inevitability in life. Funeral homes and cemeteries can charge exorbitant prices for services, However, with an open care senior plan, you can make sure that these costs don’t fall onto the shoulders of your family or loved ones. 

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The Working of Final Expense Insurance Plan

The open care final expense plan can offer death benefits of up to $50,000. In addition, many open care reviews show comprehensive plans for both young and old.

The open final expense insurance plan provides death benefits to the beneficiaries of the insured. It helps the families of a deceased person in paying for their funeral expenses, medical bills, and various other obligations.

Final expense insurance covers the costs of a funeral which can be quite expensive. These plans are used as alternative burial insurance and do not require any medical examination at the time of applying for this plan.

The working of this insurance plan is quite simple. As per the terms and conditions of your policy, you start paying the monthly premiums at a fixed rate — continue paying them until your death. The beneficiaries of your policy receive a lump sum amount after your death. This amount will be used by your family members for paying your funeral charges, hospital bills, and other expenses.

An important advantage of open final expense insurance is that it does not require any medical examination at the time of applying. However, if you have not filled out the application form truthfully and honestly, there are chances that the insurer rejects the claim application at a later stage when you have died. 

What does open care cost?

The premiums could be anywhere between $30 and $70 per year. The cost of an open care plan depends on several factors, including:

  • The type of plan you choose
  • Your age
  • Gender
  • The amount and type of cover you choose
  • Whether you include a funeral benefit rider or not

Your insurance premiums may be higher if you are under 70. Younger applicants with good health can get rates up to $50. Remember that lower prices usually equal better chances of survival. 

Benefits of Open Care Final Expense Plans 

A final expense plan is a guaranteed acceptance life insurance policy. It’s easy to qualify for and provides protection to cover the cost of funeral expenses and other debts.

The benefits of final expense coverage include:

Permanent Coverage

Open Care Plans offer permanent coverage (whole life). As long as the premiums are paid, they stay in force. Most policies also have a guarantee that premiums will never increase.

Cash Value Growth

The policy builds guaranteed cash value that’s accessible at any time. Policies have both a death benefit and cash value to protect loved ones while they are alive. After the death benefit is paid out, those left behind can use the remaining cash value to pay for outstanding medical bills, funeral expenses, or other final expenses.

Immediate coverage

Your policy is effective immediately. Coverage is effective as soon as your application and first premium payment are received.

Also, your family will receive the full death benefit if you die soon after acquiring insurance. This means your family doesn’t have to raise finances for your final expenses.

Simplicity

No health questions on the application. You’re guaranteed to be accepted. Also, no insurance underwriting test.

Greater Age Limit

Many seniors miss out on insurance options due to their age. Basically, as people age, their insurance options shrink, and if any,  the premiums rise.

However, with an open care plan, the program offers insurance policies even to seniors well in excess of 90 years. This means that you have options even if you’re getting older.

Stable Premiums 

This insurance plan features set premiums. Other final insurance systems’ rates rise over time depending on some factors. That means if you get insurance for $5 today, you can $7 next month due to factors such as inflation. 

But with open care final expense plan, the premiums remain constant regardless of changing factors. The constant premiums help you budget without worrying about rising insurance costs.

How to Ensure Your Death Benefit Is Used As Intended

Think about it. You buy burial insurance to cover your funeral and burial costs. But what if your family spends your death benefit on vacation instead? Or on the stock market?

However, you can make sure your death benefit is used as planned. Here’s how: 

Get a Trustworthy Beneficiary

Many seniors make this error and choose an unreliable beneficiary. In such situations, some beneficiaries do not pay for the funeral after the insurer dies.

Therefore, you must appoint a trustworthy individual. It is the greatest way to plan ensure that your death benefit goes as planned.

Also, the beneficiary should be a close relative, probably a son or your spouse. The idea is that such a person doesn’t take death as an opportunity to enjoy the lumpsum. So they will use the benefit to honor the deceased wishes. 

Use Funeral Homes 

If you don’t have reliable people to appoint as beneficiaries, there are other choices.

You can engage funeral homes to help with planning and executing your final expenses. When you die, the death benefit goes directly to the funeral home which implements the plans as per your wishes. 

Write Final Wishes 

Final wishes are another way to ensure your death benefit is spent as planned. Discuss your wishes with your preferred person so they can incorporate them into your final spending plans.

The best way is to write your final wishes down. Make plain how you want the death benefit used during and after your funeral. It will be difficult for people to deviate from the written wishes. 

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What else to know about open care final expense plans?

Here are some points to note concerning open care final expense plans:

The final open care final expenses include:

  • Funeral costs, including embalming and transportation
  • Casket or urn
  • Memorial service or wake
  • Burial plot or cremation fees

Also, you need to note that, unlike other insurance plans,  final expense insurance has a cash value. This means that your policy accumulates a tax-deferred savings component over time, which you can access through withdrawals and loans.

Lastly, note that smoking does affect your open care final expense premiums. If you are a smoker, the cost of open care will be more expensive than if you were not a smoker. This difference in rates is because insurers consider smokers to have a higher risk of death. Hence, they raise their premiums accordingly.

Final Remarks 

Your life insurance quotes are very easy to get. You want to look at the plan that suits your needs and budget so you can get the most out of it. Your family will be protected if something happens to you and they will not have to worry about your final expenses. Find out what top-rated companies are offering now and choose from many open care final expense plans.