What is Final Expense Life Insurance?

Final expense insurance is a type of whole life insurance designed to cover medical bills and funeral expenses when you pass. A final expense policy is also known as burial or funeral insurance and is popular with seniors.

Most final expense plans have these features:

What questions do seniors have about final expense insurance?

Qualifying for a final expense policy is often easier than qualifying for other types of life insurance (such as term insurance). But there are still important questions to ask, such as:

Does the policy expire?

Final expense policies don’t expire like term policies because they are a type of whole life insurance (learn how whole life insurance works). Your coverage won’t expire as long as you pay your premiums.

Do I have to take a medical exam?

In most cases, a medical exam isn’t required to qualify because the face amount is typically under $50,000. Coverage is usually issued based on the applicant’s answers to health questions on the application.

What features are included in the policy?

Depending on the life insurance company, your final expense policy may have added features such as child riders, accidental death and dismemberment, or support benefits for surviving loved ones such as funeral price shopping. Not all policies are the same, so make sure you review the policy’s benefits carefully.

How can the death benefit be used?

The hardest thing we must ever face is the death of a loved one. On top of this, surviving loved ones are often left to handle any end-of-life medical expenses and funeral costs. These expenses can add to the sense of grief and stress surviving friends and family members feel. Final expense life insurance was created to prevent this added pressure.

Even though final expense focuses on covering funeral costs, the death benefit can be used for anything: medical bills, credit card debt, mortgage payments, etc. How the death benefit is spent is ultimately up to the beneficiary of the life insurance policy.

How Much Does Final Expense Insurance Cost?

The average final expense policy costs between $30-$70 a month and depends on your age, sex, health, amount of coverage, and the life insurance company you choose. If you have significant health conditions or are over the age of 70, your premium will probably be higher and may cost between $70-$120 a month (though it may be less). Younger applicants who are in good health may qualify for rates in the $20-$50 range. Remember, a cheaper rate usually means fewer features and benefits for surviving loved ones. A few extra dollars a month could make a big difference in the support your family receives when you’re gone.

Cost is often the #1 factor people focus on…but it’s not the most important factor! Instead of focusing on how much the policy is going to cost, look at how many expenses will be left behind and how much they’ll cost your family. Common expenses include medical bills, credit card debt, and funeral costs. We’ll cover each of these costs below.

Funeral Costs

In 2017, the median cost of an adult funeral with viewing and burial was $8,755 (including a vault). Funeral and cremation expenses can cost families thousands of dollars, often within days of their loved one passing. Caskets alone can cost $2,000 or more depending on the material and style used. Simply opening and closing the grave can cost families anywhere from $300 – $1,000 depending on the funeral home. Final expense insurance – often referred to as burial insurance or funeral insurance – is designed to cover these costs.

The rising costs of funerals have been well-documented over the years: