What Is Final Expense Insurance?
Final expense insurance — also called burial insurance or funeral insurance — is a type of whole life insurance policy designed specifically to cover end-of-life costs.
How It Works
Final expense insurance pays a death benefit directly to your named beneficiary upon your passing. Unlike term life insurance, it never expires as long as premiums are paid, and the benefit amount never decreases. Your beneficiary can use the funds for any purpose — funeral costs, burial or cremation, outstanding medical bills, credit card debt, or any other final expenses.
Who It's For
Final expense insurance is designed for adults typically between ages 45 and 85 who want affordable, permanent life insurance coverage. It's especially valuable for those who may not qualify for traditional life insurance due to age or health conditions, and for those who want a simple, straightforward policy without large premiums.
Coverage Amounts
Most final expense policies offer coverage from $2,000 to $35,000. The most common coverage amounts chosen are $10,000–$15,000, which is sufficient to cover the average funeral cost plus additional expenses. Some carriers offer up to $50,000 for healthier applicants.
Types of Final Expense Policies
There are three main types: Level benefit (immediate full coverage, best rates, requires health questions), Graded benefit (partial coverage for first 2 years, then full benefit — for moderate health issues), and Guaranteed issue (no health questions, everyone qualifies, but higher premiums and graded benefit period).
