Ultimate Guide For Final Expense Life Insurance

It is never too early to start planning for the future, but it can be hard to know where to start. We are here to help!

This guide will tell you everything you need to know about final expense life insurance including how much coverage you should get, who should buy it, and what questions you need to be answered before buying.

Get the facts today so that when the time comes, your family won’t have any regrets!

What is a Final Expense Insurance Policy

Final expense insurance is a type of simplified whole life policy that covers medical bills and funeral expenses when the insured passes, making it popular with seniors.

It’s also known as burial or funeral insurance because most plans have these features:

  • Whole life insurance provides coverage for an individual’s entire lifetime, as long as they continue to make the required monthly payments. If premiums are paid, cash value can be accumulated within a policy.
  • Fixed premiums exist until these policies become payable-in-full (PIF) or insureds may withdraw funds using a policy loan .
  • A simplified issue is one where no medical exam is required; just health questions on the application process must be answered by applicants.
  • As whole life has fast approvals and affordable rates , this type of insurance makes sense for those who need financial assistance later in their lives without waiting months before receiving large sums of money from traditional sources like bank loans or credit cards

Final Expense Life Insurance For Seniors

The affordable price and smaller benefit amounts of final expense life insurance make it a popular choice among seniors.

The policies are typically used to cover funeral expenses, which is why they focus on this aspect alone rather than trying to replace any income lost due to the death of an individual.

Retired people are not in need of life insurance since they have already paid off their mortgages and children no longer depend on them.

Left behind expenses, however, can be expensive when someone passes away; funeral costs alone may cost more than $9000 according to the National Funeral Directors Association (NFCDA). This is why it’s important for retired individuals to invest in a way that covers these funerary expenses which happen after one’s death.

If you’ve experienced the death of a loved one, then you know how stressful it is. Grieving and funeral planning can take up all your time along with financial obligations that need to be paid off as well.

It’s an unbearable thought for our spouses or children to go through this same experience after we pass away too. So what does final expense life insurance have to do about this? This form of protection will ensure they aren’t left dealing with piles of bills when we don’t make it back from heaven either!

Burial insurance can be a great way for seniors to protect their loved ones from the rising costs of funerals. It’s usually very easy to obtain because they’re issued based on health questions- in many cases, you don’t even need a medical exam!

How Much Does Final Expense Insurance Cost (Sample Rates)

As shown in the table below, rates are lower when one is younger. Many seniors thus get coverage as early as possible to lock low rates before they rise substantially with age or medical condition.

$10,000 In Final Expense Coverage (Female/Male)

AgeFemale Monthly RateMale Monthly Rate

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Common Questions You May Have About Final Expense Life Insurance

Though qualifying for a final expense policy is often easier than qualifying for other types of life insurance, there are still important questions to ask such as:

How do I know when my final expense insurance expires?

Life insurance can be divided into two types: term and whole life. Since final expense policies are a type of whole life, your coverage won’t ever expire so long as you continue to pay the premiums on time!

Can I get life insurance without a medical exam?

If you are looking to get a small amount of coverage, for example under $50,000 then it is possible that an exam isn’t required. Smaller amounts of insurance usually rely on the answers given by applicants during interviews or questionnaires rather than actual medical exams.

What features are included in a final expense policy?

The final expense policy you choose will depend on the life insurance company. Some companies offer additional benefits such as child riders, accidental death, and dismemberment.

If your goal is to create a policy with extra protection against all risks that could arise after your passing then be sure to review each benefit carefully before choosing one because they are not always included in every single plan available from different insurance providers.

What can the death benefit from a final expense insurance policy be used for?

Even though final expense insurance focuses on covering funeral costs, the death benefit can be used for anything: medical bills, credit card debt, mortgage payments etc.

How the death benefit is spent is ultimately up to your beneficiary so they know it will not go to waste.

What is The Average Cost of Final Expense Insurance

There is a wide range of prices for final expense policies. The average cost falls in the $30-$ 70-month range, but it depends on factors like your age and health conditions such as diabetes.

If you have significant health problems or are over 70 years old, expect to pay between $70-$120 a month (but this doesn’t mean that rates under or over these ranges aren’t available).

Younger applicants who don’t have any major medical issues may qualify for premiums around the low end of this scale at about $20-50 per month. Remember though: A cheaper rate usually means fewer features and benefits for surviving loved ones!

Getting an extra few dollars here could make all the difference in what kind of support your family receives after passing away.

In addition to looking at how much the policy will cost, it’s important to look at what else you’ll be responsible for. You may still have expenses that your family must pay after a loved one dies including medical bills and credit card debt.

We’ll cover each of these costs below:

Cost of Medical Bills

In the United States, 2.6 million people died in 2014 and eighty percent of them were on Medicare before they passed away.

Spending for healthcare was higher than expected as chronic conditions lead to expensive medical procedures and health insurance doesn’t always cover consumer needs during the last year of life when significant expenses occur due to hospitalizations or hospice care costs.

Medicare and Medicaid only cover two-thirds of healthcare costs for the elderly. Healthcare spending per person is $18,424 a year.

In 2016, Medicare paid an average of $153 per day to cover hospice care. This included:

  • $193 for routine home care
  • $41 for continuous home care
  • $173 in respite care
  • $744 in general hospital services

Final Expense Life Insurance is a great way for families to protect themselves from any unexpected medical expenses incurred by their family members, who might not be able to afford the costs of end-of-life care.

Final Expense Insurance Can Take Care Of The Debt Left Behind

The average American dies with an estimated $61,554 in debt. The estate pays off as many debts as possible before distributing any assets to surviving family members. 73% of Americans die with this burden.

These may include:

  • Student loans account for 25,391 of the average person’s debt. This means that many students are taking on a lot of bills to pay off their school costs. However, they might not have enough money left over once everything has been paid out because student loan payments can be quite high and college is incredibly expensive!
  • Auto loans make up 17,111 dollars worth of debt
  • Personal loans come in at 14,793 and
  • Credit card debts bring $4,531

Although family members may need more resources after a loved one passes away due to funeral expenses etc., it seems like there isn’t much leftover when all these transactions clear from someone’s bank statement as most people owe around 100K+.

The most common type of life insurance is term, which can have face amounts in the millions. However, a final expense policy only focuses on paying for funeral arrangements and it’s uncommon to be over $20k.

Families don’t realize that funeral costs average $9,000 or more. Final expense insurance can help reduce the emotional cost of overspending on a loved one by providing an actual amount instead of guessing what they will need for all expenses.

It Does Cover Funeral Costs (Funeral Cost Breakdown)

The median cost of an adult funeral with viewing and burial was $8,755 in 2017.

Funeral expenses can be thousands of dollars depending on the material used for a casket or opening/closing costs at the gravesite.

This is why insurance companies offer final expense plans to cover these costs which are typically referred to as “funeral” or “burial” insurance policies.

The rising costs of funerals have been well-documented over the years. In 1960, an average funeral without a vault had only cost $700 – in 2019 that number rose to at least $7,640 with grave markers averaging around 200$-$400 each and additional expenses for obituaries or memorial services pushing the total closer to 10k.

The following is a list of the average costs included within that total:

Funeral ItemCost Of Item
Funeral home’s basic service Cost$2,195
Transporting remains to funeral home$350
Preparing the body, such as makeup and hairstyling$255
Staff to manage a viewing$425
Facility to manage a funeral ceremony$500
Cost of Hearse$340
Cost of Service Car$150
Basic memorial printing$175
Traditional Metal casket$2,500
The median cost of a funeral and burial$7,640
Including a Vault
Cost of Vault$1,495
Overall Cost with Vault$9,135

Grave vaults and concrete grave boxes are required by many cemeteries to ensure that the ground will not buckle over a person’s coffin.

Although this may seem like an unimportant detail, when planning funeral costs you should always budget for these items as they can be expensive.

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Shopping For A Final Expense Insurance Quote Online

There are many factors that contribute to what final expense insurance costs. Every company calculates rates in a different way, so the most affordable policy with one company may not be the best option for you when compared to another policy.

To determine which is right for you, speak with an agent who can provide free quotes based on your needs and requirements since they know all of these companies inside and out!

Before choosing a final expense plan, there are several important questions to consider.

How will the provider protect your family? What is their average claim payout time? Will they cover funeral arrangements or leave it up to you and your loved ones?

Only after considering these factors can one choose which company provides them with peace of mind during this difficult time.

Danny Ray, Founder of InsuranceForBurial.com has been specializing in final expense life insurance for almost 30 years and is known for their fast application process that requires just health questions on a one-page application with no medical exam necessary to qualify.

However, what truly sets us apart from other providers is our assistance after the person who took out the policy passes away. We help ease things along when it comes time to make burial arrangements since there’s less stress during such an emotional time as losing someone close.

What are the Pros & Cons of Final Expense Life Insurance

After-life expenses are expensive, but you can save your loved ones the trouble with a final expense policy. Caskets alone can cost up to $10,000 depending on their style and material so it’s not surprising that funeral costs overall typically total well above $10,000.

If left unpaid or unplanned for by life insurance policies families often experience financial burdens as they prepare for funerals which is why getting a more affordable final expense plan will protect those closest to you from such an unfortunate event occurring in their lives too.

Whole life insurance is a type of permanent insurance policy. For most traditional whole life policies, the death benefit and premium remain constant for as long as you hold onto your policy; some accumulate cash value.

Whole life insurance is often called “permanent” because it doesn’t have an end date like term or temporary insurances do—it lasts until you pass away.

The average cost of a funeral is $10,000 – $20,000. A final expense policy costs less than other insurance policies because it covers smaller amounts for funerals and doesn’t need to cover the same range of expenses that traditional life insurances do.

Above all, final expense policies are easier to qualify for because they have lower coverage amounts. They don’t require a medical exam and can be issued based on health questions in the application.

The main drawback of a final expense policy is that the face amount on this type of life insurance policy is much lower than other types like term.

However, keep in mind that beneficiaries can use it for anything which means you could even take out a policy to help cover your funeral costs and still get reimbursed by them later!

Why Do You Need Final Expense Insurance

Final expense life insurance might be a good fit for those over 40 who need money to cover their final expenses and funeral costs.

This type of policy typically has a death benefit between $5,000-$20,000 (and larger as you age) with lower premiums compared to traditional policies since the benefits tend to be less than other types of coverage.

A permanent life insurance plan, one that doesn’t expire if premiums are paid on a monthly basis, accumulates cash value over time.

This makes it an attractive option for seniors looking to cover their end-of-life expenses as the benefits of this type of insurance won’t have any expiry date and can accumulate until they exceed its costs which are usually very long term from policyholders’ perspective.

Life insurance isn’t just for the elderly; anyone who wants to leave their loved ones protected when they die can take out an affordable life insurance policy over 50.

It’s also possible for children to buy a life insurance plan on their parents or grandparents, and getting multiple quotes – including one that includes funeral costs – will help you determine which type of coverage is best suited to your needs.

If you have a lot of money saved up, enough to cover funeral costs without taking out an insurance plan, or if you’re in hospice care and can’t be insured for final expenses then this may not apply.

Otherwise, there’s nothing stopping the government from declining your claim.

Who Is Final Expense Insurance Best For

When seniors are ready to purchase a life insurance policy, there is no better option for them than final expense coverage. This type of coverage focuses on covering funeral costs and other end-of-life expenses that can be difficult for loved ones left behind to handle financially after the loss of a family member or friend.

You may have seen this type of product offered as burial insurance, but these policies are one and the same with their focus on final arrangements.

Final expense is also affordable (usually offers no medical exam), which makes it easier for senior consumers who aren’t always considering finances when they make decisions about new financial products.

How Do You Apply For Final Expense Life Insurance

Every life insurance policy requires a quick application. It can be one to two pages long and contain questions about your height, weight, family history of diseases, or activities you engage in on a daily basis.

Other companies have longer applications with dozens of health-related questions that require medical tests such as blood analysis and urine samples.

However, InsuranceForBurial.com is different from other companies because it only asks the standard health-related questions so the applicant doesn’t need any testing done for them before getting approved by their company’s standards!

The process for applying for coverage can vary depending on the type of insurance, but most often you will need to fill out a form online or over the phone.

The quote provided by your insurer is free and should also include all available discounts associated with it. There are some cases where policies may be sold over the phone without needing further interaction;

However, in these instances, face-to-face interactions are still recommended before purchasing any policy as there could potentially be additional questions answered at this time.

What Are the Pre-Qualifying Questions

Above all, most final expense applications have time frame questions. In fact, most final expense carriers only look back for 2 years. Here are some of the most common Pre-existing conditions questions.

Have you ever been diagnosed with any of the following:

  • bedridden,
  • hospitalized in a care facility or receiving hospice care?
  • Do you have heart disease such as stroke and congestive heart failure?
  • Have had alcohol abuse within last 2 years.
  • Has it been over two years since your diagnosis for cancer?
  • Alzheimer’s Disease?

One or more of the following questions may apply to you.

  • Do you want coverage even if your health has declined?
  • Are there family members that depend on your income for survival?
  • Is final expense life insurance a good way to cover burial expenses and other costs associated with dying, including medical bills or debts owed by loved ones after death is imminent?

Do you have health issues like type 2 diabetes that prohibit coverage? With final expense life insurance, most people can get coverage even if they’ve had medical conditions.

What Are The Coverage Levels For Final Expense Insurance

Most policies are under $50,000 but the average is closer to $10-20k. The amount depends on your health and what you want to be covered; it can be less than a traditional final expense policy if you qualify for an adjusted plan.

The applicant is issued a modified plan that has an extended waiting period. If the insured passes, they will receive all of their premiums paid plus a small percentage bonus to show appreciation for loyalty.

The final expense industry offers a range of plans to meet the needs and budgets of people who have passed away. Some companies offer 10-year or 20-year payment options that allow applicants to pay their policy in full within ten years.

These will come with higher premiums than other plans but is more affordable as it covers costs associated with burial expenses such as casket and vault fees.

Insurance Tips For End Of Life Preperation

Being dishonest about your health or medical history can get you denied coverage when the time comes.

When applying for end-of-life insurance, it is best to answer questions honestly and disclose everything. If there are any discrepancies between what’s on paper vs. in person, companies will likely find out during a review of the records after death so honesty is key!

It is important to plan ahead and understand funeral costs in your area. You can request a general cost list from any local funeral home, which will give you an idea of how much final arrangements can end up costing those close to you.

It’s also helpful if the person who takes care of your affairs has copies of all relevant documents; share what flowers or songs that would like at their services as well for convenience sake down the line so loved ones won’t be trying to guess last wishes on such short notice.

It’s important to review your coverage often so you have enough money to protect surviving family members.
Life insurance is not a one-time purchase, and funeral costs are rising all the time.

As you get older, your health could change suddenly as well! It pays off in dividends when it comes to protecting those who depend on us most for survival.

What Types Of Beneficaries Are There

When you pass, who gets to receive your life insurance benefits?

There are three main types of beneficiaries:

  • Primary (the first person the insured names as a beneficiary),
  • Contingent (if something happens to the first two within 30 days after death), and
  • Tertiary

When it comes time for someone else besides these people or groups that rely on one another’s survival dates to be notified about receiving money from an account, they will call in Tertiary Beneficiaries.

There are multiple ways to split your death benefit and it is important that you specify the percentages each should receive.

Notify these individuals about how much of a percentage they will get beforehand so there’s no confusion when the time comes!

It is important to include your adult children as primary beneficiaries on life insurance policies because this will simplify the distribution of death benefits.

Make sure you provide relevant information about them (their address, phone number, date of birth) so that when a claim needs to be submitted their identity can easily be verified by an insurance company representative.

Life insurance is important to have, but it’s even more essential that your beneficiaries are updated along the way. It’s also crucial for you to always notify them of any changes in your address or phone number so they can update their records accordingly.

Are Pre-Paid or Pre-Need a Good Option

Before pre-paying for your funeral, check to see how the money will be held and what services it can cover. You might lock in a certain rate if you purchase the service ahead of time so keep detailed documentation as well.

Funeral pre-paying is not always a smart choice, above all, you must know exactly how it works.

In most cases, prepaying for your funeral has less flexibility than getting final expense insurance because the prepaid plan can only be used to cover funerals and not other desired wishes (ex: cremation).

For example: if someone moves or changes their goals (example: they decided they wanted to get buried), then that person will lose all of the money paid in order to do so when using this payment method.


We’ve provided a comprehensive guide, but if you know someone who may need to purchase final expense life insurance and would like more information on the best options for them, we can help. Give us a call today at (855) 380-3300 or fill out the form on the right and we will be in touch with your free quote right away!

For those of you reading this article looking for general knowledge about what is covered by final expense life insurance policies, remember that they vary from company to company so it’s always good to compare prices before making any decisions. The power of hindsight tells people how important planning ahead can be – especially when it comes down to money.

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