Final Expense

Many people use their life insurance to replace their lost income and provide for their loved ones in the event of their death. These policies can amount to hundreds of thousands or even millions of dollars.

Some individuals, however, only want enough of a death benefit to cover their funeral expenses. For these people, final expense life insurance can provide a solution.

What is final expense life insurance?

Final expense life insurance is a type of whole life insurance (meaning that the policy is in effect no matter how long you live) that covers your burial and related expenses when you die.

Final expense insurance can also be called funeral insurance or burial insurance, although its benefits extend beyond paying for the funeral. Most final expense policies include the following features:

Simplified Issue

You receive fast approval based on answering just a few medical questions. No medical exam is required.

Fixed Premiums

Premiums remain the same as long as you pay them on time every month.

Flexibility

Your loved ones can use the death benefit as they wish, including for expenses such as debts, casket, cremation, trips to spread ashes, post-funeral celebrations of life, and more.

What are the downsides to final expense life insurance?

The primary downside to final expense life insurance is its low coverage amounts. Typically, this type of life insurance does not exceed $25,000. If you think you will need more money for your funeral expenses, or you wish to leave your loved ones with more of a financial cushion, you may want to opt for a different type of life insurance policy.

Why consider final expense life insurance?

There are several reasons people choose final expense life insurance.

Affordability

Because the death benefit of a final expense policy is lower than other types of policies, the rates tend to be lower as well, making final expense insurance affordable even for small budgets.

Supplemental Insurance

If you have a term life insurance policy, your policy will expire when the term is up. If you want your loved ones to have the resources needed to pay for your funeral expenses even after your term life insurance policy ends, you may want final expense life insurance.

Pre-existing Conditions

If you are in poor health or are of advanced age, you may benefit from purchasing final expense insurance because it does not require a medical exam and has lower rates than does no-exam life insurance.