Navigating Final Expense Insurance: A Senior’s Guide to Understanding Cash Value

If you were wondering about the Cash Value of Final Expense Insurance, you came to the right place! We are the experts.

It’s natural to worry about the financial burden your family may have to bear once you’re gone. As a senior, it’s prudent to explore all options to protect your loved ones from such stress.

Final expense insurance is one such avenue that ensures your final expenses don’t weigh heavily on your family.

This guide explores final expense insurance, its cash value, benefits, and its potential worth for you.

What is Final Expense Insurance?

Final expense insurance, also called burial or funeral insurance, covers your end-of-life costs. It’s a special life insurance policy.

These costs might include funeral expenses, medical bills, legal fees, or any other debts that you leave behind. Keep in mind every state may be different.

Final expense insurance aims to alleviate the financial strain on your loved ones during an already emotionally challenging time.

Unlike term or traditional whole life insurance policies, final expense insurance typically offers lower coverage amounts – often ranging from $5,000 to $25,000.

Given the smaller benefit size, final expense insurance policies usually have more affordable premiums, making them a popular choice among seniors, especially those with limited income or savings.

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The Cash Value of Insurance

When you’re exploring different types of insurance policies, one feature that might come up is ‘cash value.’ It’s a term that’s commonly associated with whole life insurance policies.

But does final expense insurance have a cash value? The short answer is typically no or not like traditional whole life insurance.

In a whole life insurance policy, a portion of your premiums goes into a cash value account.

This account grows over time on a tax-deferred basis and can be accessed during your lifetime under certain circumstances.

However, final expense insurance doesn’t usually have this feature. It’s primarily designed to provide a death benefit to help cover end-of-life expenses.

So the cash value portion of the policy does not accelerate.

One reason behind this is that the goal of final expense insurance is simplicity. It’s meant to be an uncomplicated product that provides straightforward benefits without the complexity of cash value accumulation or investment components.

Although it does accumulate cash value after two years, it will never equal what hte premiums will be paid.

Benefits of Final Expense Insurance

While final expense insurance doesn’t accumulate cash value, it doesn’t mean it’s devoid of benefits. Here are some key advantages:

  1. Affordable Premiums: Final expense insurance typically offers lower premiums compared to other types of life insurance. It’s a cost-effective way for seniors to ensure that their loved ones aren’t burdened by funeral costs and other end-of-life expenses.
  2. Simplified Application Process: Most final expense insurance policies offer simplified underwriting. This means you won’t have to undergo a medical exam to get coverage. Some policies might ask a few health-related questions, but it’s generally easier to qualify for final expense insurance than for other types of life insurance.
  3. Fixed Premiums and Death Benefit: The premiums for final expense insurance usually stay the same throughout the life of the policy. Likewise, the death benefit doesn’t decrease over time. This means you can budget for your premium payments, and your beneficiaries will know exactly what to expect when the time comes.
  4. Peace of Mind: Perhaps the biggest benefit of all is the peace of mind that comes with knowing your loved ones won’t have to bear the financial burden of your final expenses. This can relieve a significant amount of stress for both you and your family.

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Is Final Expense Insurance Worth It?

Whether or not final expense insurance is worth it depends on your personal circumstances and financial goals. If you have sufficient savings to cover your end-of-life expenses and leave behind a substantial inheritance, you might not need final expense insurance.

However, if you don’t have enough savings to cover these costs, or you don’t want to deplete your estate to pay for them, final expense insurance could be a wise investment.

The premiums are generally affordable, and the death benefit can significantly ease the financial burden on your family.

Another factor to consider is your health. If you have a serious medical condition that disqualifies you from traditional life insurance, final expense insurance could be an excellent alternative due to its simplified underwriting process.

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Q1: How does final expense insurance compare to life insurance with a cash value?

While both types of insurance provide a death benefit, life insurance with cash value can also serve as an investment or savings vehicle, as it accumulates value over time.

On the other hand, final expense insurance solely provides a fixed death benefit to cover end-of-life costs with the cash value being minimal and not tied to a investment, or dividend.

Q2: Can I use the death benefit of my final expense insurance before I pass away?

Typically, the death benefit from final expense insurance is only accessible to beneficiaries after the policyholder’s death. The small cash value that is accumulated, you can borrow or surrenender the policy.

However, some policies may offer living benefits, allowing policyholders to access funds under certain conditions, such as being diagnosed with a terminal illness.

Remember, it’s essential to speak with a licensed insurance expert or financial advisor to determine the best course of action for your individual circumstances.

You deserve peace of mind, and final expense insurance can provide exactly that by securing your family’s financial future.


Getting your head around insurance can feel like a big challenge, but when you break it down, it’s easier to see the benefits. Take final expense insurance as an example. Unlike some life insurance policies, it doesn’t increase in value the longer you have it.

But that doesn’t make it less valuable. It’s straightforward, cost-effective, and provides a set amount of money to your loved ones when you’re gone, ensuring they won’t face financial hardship.

So, is final expense insurance a wise choice? For lots of older folks, the answer is absolutely. We hope this guide has shed some light on the topic. But remember, everybody’s situation is unique.

Consulting a professional aids in making the right insurance choice for your family. After all, insurance is about caring for our loved ones, bringing peace of mind.

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