What Is Final Expense Insurance?

Updated · Jun 18, 2022

Most people don’t like to think about their own mortality, but the fact is we all die at some point.

And when that time comes, unless you have planned ahead, your loved ones will have to deal with the financial stress on top of everything.

That’s where final expense insurance comes in.

It can cover funeral costs and other expenses that can arise after your death.

What Is Final Expense Insurance?

Final expenses insurance is a type of whole life coverage.

It’s designed to cover funeral costs rather than larger expenses like outstanding debt. As such, the death benefit is smaller, too.

That means insurance companies typically pay it out relatively quickly after the policyholder’s death.

Plus, this type of policy is cheaper than traditional life insurance.

How Does End-Of-Life Insurance Work?

Final expense life insurance is designed to cover end-of-life expenses. Most often, that's burial costs.

That said, the death benefit comes with no strings attached. Your family can use it to cover any type of final expenses.

Premiums are typically much lower than those of traditional life insurance policies. Then again, the coverage is also smaller.

The exact amount can vary depending on the provider, your age, and in some cases—your health. On average, the coverage is $10,000 to $20,000.

Lastly, most final expense policies have no medical exam requirement.

As such, they are a good alternative for people with health problems that may be ineligible for traditional life insurance.

Do I Need Burial Insurance?

According to the National Funeral Directors Association (NFDA), the median cost of a burial in 2021 was $7,848.

Unless you have a comprehensive life insurance plan, you'll need to save that money from your salary or pension. And that isn't always easy.

If that isn't enough of a reason, here are a few more reasons why funeral insurance is important.

You Need Affordable Coverage

Since the scope of this type of insurance is narrow, it offers a small coverage.

As a result, its premiums are much lower than those required for whole life policies.

So, if you can't afford a comprehensive life insurance plan, burial coverage is a viable alternative.

You Don’t Want to Burden Your Family

Final expense insurance is an essential part of ensuring that you won’t burden your loved ones with funeral expenses.

You Have Pre-existing Medical Conditions

If you have pre-existing medical conditions, it might be difficult to get life insurance.

Plus, some types of insurance have an age limit for applications.

This makes final expense insurance a great option for seniors.

Typically, it doesn't require a medical exam and is available to people between 50 and 85.

Benefits of Final Expenses Life Insurance

You and your family will have peace of mind knowing that end-of-life expenses will be covered.

What else is final expense insurance good for?

The list is long.

Here are the main benefits it has over other types of insurance.

  • No medical exam
  • Quick approval
  • Low premiums
  • Coverage starts immediately

If you’ve already made up your mind, start comparing offers.

Wrap Up

While there is no way to shield our loved ones from the pain of our passing, we can ease the financial burden they may face.

That is what final expense insurance does.

It’s affordable, easy to get, and doesn’t require a medical exam.

Plus, the death benefit can be used for any purpose, giving your loved ones the flexibility they need to cover your end-of-life expenses.

To give yourself and your family peace of mind, start comparing burial insurance offers for seniors.

Aleksandra Yosifova
Aleksandra Yosifova

With an eye for research, Aleksandra is determined to always get to the bottom of things. If there’s a glitch in the system, she’ll find it and make sure you know about it.