Final expense insurance costs vary based on age, health status, gender, the death benefit amount, and whether the policy is simplified issue or guaranteed issue. Because final expense policies offer smaller death benefits (typically $5,000 to $50,000) and simplified underwriting, the monthly premiums are lower in dollar terms than traditional life insurance, though the cost per dollar of coverage is higher due to the limited underwriting and older applicant pool.
For simplified issue final expense policies (health questions, no medical exam), a 65-year-old non-smoker might pay an illustrative $40 to $80 per month for a $15,000 policy, or an illustrative $80 to $150 per month for a $25,000 policy. Guaranteed issue policies (no health questions, no medical exam) cost more, with the same 65-year-old potentially paying an illustrative $60 to $120 per month for a $15,000 policy. Guaranteed issue policies also include a graded death benefit during the first two to three years.
Age significantly impacts final expense costs. A 55-year-old will pay substantially less than a 75-year-old for the same coverage. Gender also plays a role, with women generally paying less. Health conditions affect simplified issue rates but not guaranteed issue, which accepts all applicants within the eligible age range. Tobacco use increases premiums for both product types.
When evaluating final expense insurance costs, consider the total premium outlay relative to the death benefit. For older applicants, the total premiums paid over time may approach or exceed the death benefit amount. However, the purpose of final expense insurance is peace of mind and immediate availability of funds at death, not return on investment. All premiums are illustrative. Actual costs vary by carrier and individual underwriting. Guarantees are backed by the financial strength and claims-paying ability of the issuing insurance carrier.