Final expense insurance, also called burial insurance, is a small whole life policy designed specifically to cover funeral costs, medical bills, and other end-of-life expenses. Coverage amounts typically range from $5,000 to $25,000.
These policies are popular among seniors who want to ensure their families aren’t burdened with funeral costs.
Simplified Qualification
One of the biggest advantages of final expense insurance is easy qualification. Most policies use simplified underwriting with just a few health questions — no medical exam required. This makes coverage accessible to people who might not qualify for traditional life insurance.
Acceptance rates are high, and some guaranteed issue policies accept everyone regardless of health status.
What Final Expense Covers
The average funeral in the United States costs between $7,000 and $12,000, and that doesn’t include burial plots, headstones, or other expenses. Final expense insurance ensures these costs don’t fall on your family during an already difficult time.
The death benefit can also cover outstanding medical bills, credit card debt, or other small obligations.
Cost Considerations
Because coverage amounts are small and qualification is easy, premiums are generally affordable — often $30 to $70 per month for seniors. However, on a per-dollar-of-coverage basis, final expense insurance costs more than traditional life insurance.
If you’re healthy enough to qualify for a standard policy, you’ll get better value with a small term or whole life policy instead.