01
Choose a coverage amount
Most policies range from $5,000 to $25,000. Coverage up to $100,000 is available with some carriers for buyers who want a larger benefit.
What it is
A whole life policy, typically $5,000 to $25,000, sized for funeral and end-of-life costs. Higher coverage amounts up to $100,000 are available with some carriers.
Final expense insurance is a whole life policy designed to cover the immediate costs that follow a death: funeral arrangements, burial or cremation, outstanding medical bills, and similar expenses. Most consumers buy between $5,000 and $25,000 in coverage, which aligns with average funeral and end-of-life costs. Some carriers offer final expense policies with coverage up to $100,000 for buyers who want a larger benefit for their family.
Unlike term life, final expense coverage does not expire. As long as premiums are paid, the policy stays in force for life. Premiums are locked at issue and never increase, and the policy builds a small amount of cash value over time. Most final expense policies use simplified underwriting, meaning no medical exam is required; eligibility is determined through a health questionnaire. For buyers with more significant health conditions, guaranteed-issue options are available.
How it works
Plain and simple.
02
Answer a short health questionnaire
No medical exam is typically required. A handful of yes/no health questions determines eligibility and rate.
03
Premiums are locked for life
The monthly premium never changes, and coverage cannot be canceled by the insurer as long as premiums are paid.
04
Beneficiary receives funds quickly
Most claims pay out within a few weeks, giving your family fast access to funds when they need them most.
Fit
Is this product right for you?
Likely a good fit
- Older adults, typically 50 to 85, without existing life insurance
- People wanting to ensure funeral and end-of-life costs are covered without burdening family
- Anyone with mild-to-moderate health conditions who may not qualify for traditional life insurance
- Buyers who want simple, predictable coverage with locked premiums
- People wanting a larger benefit (up to $100,000 with select carriers) to leave behind
Probably not the right fit
- Buyers needing coverage beyond what final expense policies offer
- Young adults, since term life is far less expensive at younger ages
- Anyone who already has adequate life insurance through work or a separate policy
- Households with significant ongoing income replacement needs
Key terms
The vocabulary you'll hear.
- Whole life
- Permanent insurance that does not expire and builds cash value.
- Simplified issue
- Underwriting based on a health questionnaire only, no medical exam required.
- Guaranteed issue
- A policy you cannot be denied for, available for buyers with significant health conditions.
- Cash value
- The savings component of whole life that grows tax-deferred over time and can be borrowed against.
- Locked premium
- A premium that is set when the policy is issued and never increases for the life of the policy.
FAQ
Common questions
Will my family wait long for the payout?
Most final expense claims pay within 14 to 30 days after the insurer receives the death certificate and claim form. This is significantly faster than estate-related payouts.
Can I qualify with health conditions?
Yes. Simplified-issue policies use a health questionnaire and accept most applicants, including those with mild-to-moderate conditions. For buyers with more significant health conditions, guaranteed-issue options are also available. Your agent can walk you through which option fits your situation.
Does it pay the funeral home directly?
No. The death benefit is paid as cash to your beneficiary, who can use it for any expenses, including the funeral. Some funeral homes offer pre-need contracts; final expense insurance is a separate product.
What happens to the premium if my health changes?
Nothing. Once the policy is issued, the premium is locked and cannot increase regardless of health changes.