What Is Final Expense Insurance?
Final expense insurance, sometimes called burial insurance or funeral insurance, is a small whole life policy designed specifically to cover end-of-life costs. The death benefit is usually between $5,000 and $25,000. It provides your loved ones with the quick cash they need to pay for a funeral, cremation, medical bills, or small outstanding debts without having to dip into their savings.
How Does It Work?
Because it is a type of whole life insurance, the premiums remain locked in for life, and the coverage never expires as long as you pay the bill. The application process is incredibly simple—most policies are either simplified issue (answering a few health questions) or guaranteed issue (no health questions at all). You do not need to take a medical exam.
Who Needs Final Expense Insurance?
This type of insurance is geared toward older adults (typically ages 50 to 85) who do not have enough savings to cover funeral costs, which can average $8,000 to $10,000. It's also a good option for individuals whose health issues prevent them from qualifying for standard term or whole life insurance policies.