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Final Expense Insurance to Ease the Burden on Your Family
A funeral, burial or cremation, and final bills can cost thousands of dollars. Final expense insurance is a smaller whole life policy designed to help your loved ones cover those costs, so they can focus on each other instead of the bill.
What Is Final Expense Insurance?
Final expense insurance, sometimes called burial insurance, is a type of permanent whole life insurance with a smaller death benefit than a traditional life insurance policy. It is designed to help your family pay for end-of-life costs such as a funeral, burial or cremation, a headstone, outstanding medical bills, or other final debts.
When you pass away, the death benefit is paid directly to the beneficiary you choose. Your beneficiary decides how to use the money. It is not paid to a funeral home unless you or your beneficiary arrange that.
What Do Final Expenses Cost?
$8,300
National median cost of a funeral with a viewing and burial (2023)
$6,280
National median cost of a funeral with a viewing and cremation (2023)
$255
One-time Social Security death payment, available only to an eligible spouse or child
Funeral medians do not include cemetery plots, vaults, headstones, flowers, or an obituary, which can add thousands more. Sources: National Funeral Directors Association, 2023 General Price List Study; Social Security Administration.
How Final Expense Coverage Works
Coverage That Lasts
Final expense policies are whole life insurance, so coverage is designed to last your lifetime as long as premiums are paid.
Premiums That Typically Stay Level
Many final expense policies are designed with premiums that do not increase as you age. Your policy will state its exact premium terms.
A Simpler Application
Most final expense policies do not require a medical exam. Instead, you answer health questions on the application, and the insurer may review prescription and medical records.
Money Your Family Controls
The benefit goes to your chosen beneficiary, who can use it for the funeral, medical bills, or any other need.
Types of Final Expense Policies
How a policy pays in the first few years depends on how it is underwritten. Insurers use different names and terms, so always check the actual policy.
Level Benefit
For applicants who qualify based on their health answers. The full death benefit is generally available from the first day the policy is in force.
Graded or Modified Benefit
For applicants with certain health conditions. If death from natural causes occurs during an initial period, often the first two or three years, the policy pays a reduced amount or a return of premiums with interest instead of the full benefit. Accidental death is often covered in full from the start.
Guaranteed Issue
No health questions, within the insurer's age limits. These policies usually cost more for the same coverage and typically have a waiting period of two to three years before the full benefit applies for natural-cause deaths.
My approach is to look for the strongest option you can qualify for first, so you are not paying for a waiting period you may not need.
Who Is Final Expense Insurance For?
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Adults, typically between 50 and 85, who want to keep funeral costs from falling on their family. Age limits vary by insurer.
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People who want a smaller, more affordable amount of coverage instead of a large life insurance policy.
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Those who have found other life insurance hard to get because of their health.
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People whose existing coverage through work may end at retirement.
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Adult children helping a parent plan ahead. The parent being insured must take part in and sign the application.
Final Expense Insurance
vs. a Prepaid Funeral Plan
A prepaid (preneed) funeral plan is arranged with a specific funeral home and is usually tied to the goods and services you select there. Final expense insurance pays your beneficiary directly, who can then choose any funeral provider and use any remaining money for other bills.
Both can play a role in planning. Whichever you choose, federal rules give you the right to itemized price information from funeral providers, so you can compare options.
Common Questions
Do I need a medical exam?
Usually not. Most final expense policies use health questions instead of an exam. Guaranteed issue policies ask no health questions.
How much coverage should I get?
Many people choose an amount based on the type of service they want, plus any medical bills or debts they expect to leave behind. We can estimate a number together during your review.
Will my premium go up as I get older?
Many final expense policies are designed with level premiums, but terms vary. Your policy will spell out exactly how premiums work.
Can I qualify if I have health problems?
Often, yes. Depending on your health, you may qualify for a level, graded, or guaranteed issue policy. Approval is always up to the insurance company.
Can I buy a policy for my parent?
An adult child can help a parent apply and may be able to pay the premiums, but the parent must agree to the coverage and take part in the application.
Is final expense insurance the same as a prepaid funeral plan?
No. A prepaid funeral plan is tied to a specific funeral home. Final expense insurance pays your chosen beneficiary, who decides how to use the money.
Give Your Family One Less Thing to Worry About
A short, no-pressure conversation is all it takes to see your options. I serve families in Virginia, Maryland, Washington, DC, and North Carolina by phone or video.
Important Information
Final expense insurance is whole life insurance. Product availability, eligibility, issue ages, premiums, benefit amounts, and waiting periods vary by insurer, policy, and state. Policies may include graded or modified benefits and exclusions. Coverage is subject to underwriting and becomes effective only when approved and issued by the insurance company. This page is general educational information and is not a recommendation of a specific product. Requesting information or scheduling a consultation does not create or bind coverage.