A Guide to Canada Protection Plan’s Final Expense Life Insurance

In an uncertain world, it’s important to plan for the unexpected. One aspect of life that many people fail to consider is the financial burden that can be left behind after their passing. Final expense insurance is a crucial component of any comprehensive financial plan, providing peace of mind and financial security for loved ones during a difficult time. 

Canada Protection Plan (CPP) understands the importance of this type of insurance and offers tailored solutions to meet the unique needs of individuals and families across the country. With their extensive experience and commitment to customer satisfaction, CPP has become a trusted name in the insurance industry. Whether it’s covering funeral expenses, outstanding debts, or simply leaving a financial legacy, their comprehensive range of final expense insurance products ensures that your loved ones are taken care of when it matters most.

In this article:

• What is final expense insurance?
  • The importance of final expense insurance
  • Comparison to other types of life insurance
• Understanding the coverage
• Who should consider final expense insurance
• How to choose the right policy
  • Common misconceptions 
  • Application process
• Frequently Asked Questions (FAQs) about Final Expense Insurance from CPP

What is final expense insurance?

Final expense insurance, also known as burial insurance or funeral expense insurance, is a type of life insurance that is specifically designed to cover the costs associated with end-of-life expenses. These expenses may include funeral and burial costs, medical bills, outstanding debts, and other financial obligations that may arise upon the policyholder’s death. Unlike traditional life insurance policies, final expense insurance is typically purchased in smaller amounts, usually ranging from $5,000 to $25,000.

Final expense insurance provides individuals and their families with a way to ensure that these costs are taken care of, relieving the financial burden on their loved ones during an already emotionally challenging time. By securing a final expense insurance policy, individuals can have peace of mind knowing that their funeral expenses and other end-of-life costs will be covered, allowing their family members to focus on grieving and healing without the added stress of financial obligations.

The importance of final expense insurance

Final expense insurance plays a crucial role in providing financial protection and stability for individuals and their families. Many people underestimate the costs associated with end-of-life expenses, assuming that their savings or traditional life insurance policies will be sufficient to cover these costs. However, the reality is that funeral and burial expenses alone can quickly add up, often amounting to several thousand dollars or more.

By having a final expense insurance policy from CPP in place, individuals can ensure that their loved ones are not burdened with these costs. This type of insurance coverage can help ease the financial strain on family members, allowing them to focus on mourning and honoring the memory of their loved one, rather than worrying about how to pay for the funeral or other expenses.

Additionally, final expense insurance can be particularly beneficial for individuals who do not have substantial savings or who do not qualify for traditional life insurance policies due to health conditions or other factors. Final expense insurance policies are often available to individuals regardless of their health status, making it an accessible option for those who may have difficulty obtaining other forms of life insurance.

Final expense insurance vs. other types of life insurance

While final expense insurance offered by Canada Protection Plan shares similarities with other types of life insurance, there are some key differences that set it apart. Traditional life insurance policies, such as term or whole life insurance, are typically designed to provide a significant death benefit to beneficiaries upon the policyholder’s death. These policies are often purchased with the intention of replacing the policyholder’s income or ensuring the financial security of their dependents in the event of their passing.

On the other hand, final expense insurance is specifically geared towards covering the costs associated with end-of-life expenses. The death benefit provided by a final expense insurance policy is typically smaller compared to traditional life insurance policies, as it is intended to cover funeral and burial expenses, outstanding debts, and other immediate financial obligations.

Another key difference is the underwriting process. Traditional life insurance policies often require applicants to undergo a thorough medical underwriting process, which may include a medical examination, blood tests, and a review of their medical history. Final expense insurance, on the other hand, typically has simplified underwriting, making it more accessible for individuals with pre-existing medical conditions or other health concerns.

Understanding the coverage of final expense insurance

Final expense insurance policies provide coverage for a wide range of end-of-life expenses. These expenses may include funeral and burial costs, cremation expenses, memorial services, medical bills, outstanding debts, and even legal fees. The specific coverage and benefits provided by a final expense insurance policy can vary depending on the insurance provider and the policyholder’s chosen coverage options.

Funeral and burial costs can be significant, CPP states that they often range from $5,000 to $15,000 or more, depending on factors such as location, type of service, and additional expenses such as flowers and transportation. Final expense insurance can provide the necessary funds to cover these costs, ensuring that the policyholder’s final wishes are carried out without placing a financial burden on their loved ones.

In addition to funeral and burial expenses, Canada Protection Plan’s final expense insurance can also cover medical bills incurred during the policyholder’s final illness or injury. This can include hospital stays, medical procedures, medications, and other related costs. By having this coverage in place, individuals can ensure that their medical expenses are taken care of, preventing any additional financial strain on their family members.

Furthermore, final expense insurance may also provide coverage for outstanding debts, such as credit card balances, personal loans, and other financial obligations. This can help prevent creditors from pursuing the deceased’s estate or placing a burden on family members who may be left responsible for these debts.

Who should consider final expense insurance?

Final expense insurance is suitable for individuals of all ages who want to ensure that their end-of-life expenses are covered and their loved ones are not burdened with these costs. While it may be more commonly associated with older adults and retirees, final expense insurance can also be beneficial for younger individuals who want to plan ahead and protect their families from financial hardship in the event of their untimely passing.

Young professionals starting a family or individuals who have dependents may find final expense insurance particularly valuable. By securing this type of coverage, they can have peace of mind knowing that their loved ones will not be left with the financial burden of funeral and burial expenses, medical bills, and other immediate financial obligations.

Additionally, final expense insurance can be a suitable option for individuals who do not have substantial savings or who cannot qualify for traditional life insurance due to health conditions or other factors. Final expense insurance policies often have simplified underwriting processes, making them more accessible for individuals with pre-existing medical conditions or other health concerns.

How to choose the right final expense insurance policy from CPP:

Choosing the right final expense insurance policy is crucial to ensure that your loved ones are adequately protected. Here are some key factors to consider when selecting a policy:

1. Coverage amount: Determine the amount of coverage you need to cover your anticipated end-of-life expenses. Consider factors such as funeral and burial costs, outstanding debts, and any specific requests or preferences you may have.
2. Premiums: Compare the premiums offered by different insurance providers. Ensure that the monthly or annual premium fits within your budget and is affordable in the long term.
3. Policy terms: Understand the terms and conditions of the policy, including any exclusions or limitations. Familiarize yourself with the policy’s renewal options and any potential changes in premiums over time.
4. Insurance provider: Research different insurance providers and their reputation in the industry. Look for providers with a strong track record, positive customer reviews, and a history of prompt claims payment.
5. Additional benefits: Some final expense insurance policies may offer additional benefits, such as accelerated death benefits or options to add riders for additional coverage. Consider these options and determine if they align with your needs and preferences.

By carefully considering these factors and comparing different policies, you can select a final expense insurance policy that best meets your needs and provides the necessary financial protection for your loved ones.

Common misconceptions about final expense insurance:

1. “I already have life insurance, so I don’t need final expense insurance.” 

While traditional life insurance policies may provide a death benefit that can be used for funeral and burial expenses, final expense insurance offers specific coverage for these costs. By having a separate final expense insurance policy, you can ensure that these expenses are adequately covered without depleting the death benefit of your traditional life insurance policy.

2. “I’m young and healthy, so I don’t need final expense insurance.”

Final expense insurance is not limited to older adults or individuals with health conditions. Accidents and unexpected events can happen at any age. By securing final expense insurance early on, you can protect your loved ones from the financial burden of end-of-life expenses, regardless of your age or health status.

3. “Final expense insurance is too expensive.”

Final expense insurance policies are typically affordable, with premiums that fit within most budgets. By comparing different insurance providers and coverage options, you can find a policy that suits your financial situation.

4. “I can rely on my savings to cover end-of-life expenses.” 

While it’s important to have savings, relying solely on them to cover funeral and burial costs may not be sufficient. By having a final expense insurance policy, you can ensure that your savings are preserved for other financial goals or emergencies.

The application process for final expense insurance by CPP:

The application process for final expense insurance is typically straightforward and streamlined compared to traditional life insurance policies. 

Here are the general steps involved:

1. Research and compare insurance providers: Start by researching different insurance providers that offer final expense insurance. Look for providers with a strong reputation, positive customer reviews, and competitive coverage options, such as Canada Protection Plan
2. Request quotes: Contact CPP and request quotes for their final expense insurance policies. Provide them with the necessary information, such as your age, gender, and any pre-existing medical conditions.
3. Review the quotes: Compare the quotes you receive, taking into account the coverage amounts, premiums, and any additional benefits or riders offered. Consider the overall value and suitability of each policy.
4. Complete the application: Once you have chosen a policy, complete the application form provided by CPP. Be thorough and accurate when providing personal and medical information.
5. Underwriting process: CPP will review your application and may require additional information or medical records. Depending on the insurance provider and the coverage amount requested, a medical examination may be required.
6. Approval and policy issuance: If your application is approved, you will receive your final expense insurance policy documents. Review the policy carefully to ensure that all the details are accurate and meet your expectations.
7. Pay premiums: Once you have received your policy, you will need to start paying the premiums as outlined in the policy terms. Ensure that you understand the payment schedule and method.

By following these steps and working with a reputable insurance provider such as Canada Protection Plan, you can navigate the application process smoothly and secure the final expense insurance coverage that suits your needs.

Frequently Asked Questions (FAQs) about Final Expense Insurance from CPP

Find a solution for what you’re looking for

Canada Protection Plan is a trusted provider of final expense insurance in Canada, offering comprehensive coverage options and competitive rates. Whether you are a young professional starting a family or a retiree planning for the future, final expense insurance can provide the necessary financial security to ensure that your loved ones are not burdened with end-of-life expenses. 

If you’re uncertain about the ideal insurance plan or company for your needs, working with a life insurance specialist can assist in finding the optimal solution for your unique circumstances. Protect Your Wealth has been offering professional guidance on various life insurance options since 2007. As your reliable life insurance broker and financial planner, we collaborate with you to develop a tailored plan that effectively addresses the requirements of your family or business.

Contact Protect Your Wealth or call us at 1-877-654-6119 to talk to an advisor today. We’re proudly based out of Hamilton, and service clients anywhere in Ontario, British Columbia, and Alberta, including areas such as Mississauga, Richmond, and Edmonton.