What Is Final Expense Insurance? A Complete Guide for Seniors
Final expense insurance, sometimes called burial insurance, is a type of life insurance designed to cover funeral costs and other end-of-life expenses. If you're a senior or someone planning ahead to ease the financial burden on your loved ones, this guide will walk you through everything you need to know—from how final expense insurance works to how to choose the right policy.
Table of Contents
- What Is Final Expense Insurance?
- How Final Expense Insurance Works
- Average Costs and Coverage Amounts
- Who Should Consider It?
- Pros and Cons
- How to Choose a Final Expense Policy
- Top Final Expense Insurance Providers
- Frequently Asked Questions
- Conclusion
What Is Final Expense Insurance?
Final expense insurance is a small whole life insurance policy that's intended to cover the costs associated with a person's death—such as funeral services, cremation or burial, and unpaid medical bills.
Unlike traditional life insurance, final expense policies have:
- Lower coverage amounts (typically $5,000–$25,000)
- Easier approval (often no medical exam required)
- Fixed premiums that never increase
These policies are often marketed to seniors who want to ensure their families aren't left with unexpected costs.
How Final Expense Insurance Works
Here's how it generally works:
- You apply—usually online or over the phone, with minimal health questions.
- Get approved quickly, often within a few days.
- Pay a fixed monthly premium for the life of the policy.
- When you pass away, your beneficiary receives the lump sum death benefit.
- They can use the money for funeral costs, medical bills, debts, or anything else.
Many policies offer guaranteed acceptance for those aged 50–85, regardless of health history.
Average Costs and Coverage Amounts
| Age | Coverage Amount | Monthly Premium (Est.) |
|---|---|---|
| 55 | $10,000 | $25–$35/month |
| 65 | $10,000 | $35–$50/month |
| 75 | $10,000 | $60–$85/month |
Tip: Rates vary by gender, smoker status, and state.
Who Should Consider Final Expense Insurance?
This type of policy is ideal for:
- Seniors age 50–85
- Individuals without life insurance
- People with limited savings
- Those who want to avoid burdening family members
Even if you have savings, final expense insurance ensures your funeral is covered and allows loved ones to grieve without financial stress.
Pros and Cons
Advantages
- No medical exam required
- Fixed premiums for life
- Payouts are tax-free
Considerations
- Higher premiums per $1k of coverage
- Lower payout than term or whole life
- Some policies have a 2-year waiting period
How to Choose a Final Expense Policy
- Decide your coverage need (e.g. $10K for a simple burial or $20K for additional expenses)
- Compare quotes from 3–5 trusted insurers
- Look for fixed premiums and fast approval
- Read the fine print—watch for waiting periods or exclusions
- Check reviews and financial ratings of the insurer (A.M. Best, Trustpilot)
Top Final Expense Insurance Providers
Here are some well-known companies offering final expense coverage:
100% online with instant decision
No medical exam, flexible plans
Competitive rates, quick approval
Includes member benefits
Wide coverage options
Frequently Asked Questions
Conclusion
Final expense insurance provides peace of mind and a financial cushion for your family when they need it most. Whether you're just starting to plan or shopping for the best policy, understanding how it works is the first step toward making a smart decision.