Final expense insurance (also called burial insurance or funeral insurance) is a type of whole life insurance designed to cover end-of-life costs such as funeral and burial expenses, outstanding medical bills, and small debts. Coverage amounts are typically $5,000 to $25,000, with premiums that are lower in dollar terms than larger policies but higher per dollar of coverage due to the older age of most purchasers and simplified underwriting.
Illustrative monthly premiums for final expense insurance vary significantly by age, health, and whether the policy is simplified issue (health questions but no exam) or guaranteed issue (no health questions): Age 55 simplified issue: illustrative $25 to $50 for $10,000. Age 60 simplified issue: illustrative $35 to $65 for $10,000. Age 65 simplified issue: illustrative $45 to $85 for $10,000. Age 70 simplified issue: illustrative $60 to $110 for $10,000. Guaranteed issue premiums are typically 30% to 50% higher.
The average funeral cost in the United States is approximately $7,000 to $12,000, depending on the type of service, location, and specific choices. Additional end-of-life costs may include outstanding medical bills, credit card debts, legal and administrative costs, and other final obligations. A $15,000 to $25,000 final expense policy covers these costs for most families.
Final expense policies build cash value over time, though the primary purpose is the death benefit. Because they are permanent whole life policies, coverage continues for life as long as premiums are paid. Some final expense policies include riders such as an accelerated death benefit for terminal illness. Guarantees are backed by the financial strength and claims-paying ability of the issuing carrier. A licensed agent in our network can help determine the right coverage amount for your final expense needs.