Final Expense Insurance
What is Final Expense Life insurance?
Essentially, it’s a type of whole life insurance with smaller face amounts (the amount your loved ones will receive if you pass away, also known as the death benefit)— usually $40,000 or less in coverage4, though a few insurers may offer up to $50,000 in coverage.5 You might even hear these policies referred to as “burial insurance” or “funeral insurance,” since the idea is to use the death benefit to pay for end-of-life arrangements. In reality, there aren’t any restrictions on how the death benefit can be spent.5
This type of life insurance tends to be easier to qualify for than others.4 In most cases, final expense life insurance policies don’t require medical exams, so they can be a good option for someone with a pre-existing condition who can’t qualify for other types of life insurance.5 And since these are smaller face amounts, the monthly premiums are also less expensive relative to policies with larger death benefits.5
What does final expense insurance cover?
While this type of insurance is designed to cover the costs associated with a person’s death — caskets, cremations, receptions, burial costs, etc. — the death benefit can truly be spent on anything. There aren’t any rules mandating what the money must cover, so the beneficiary is free to use it for mortgage payments, taxes, medical bills, savings, college tuition, or anything else.6
Who Should Consider Final Expense Insurance
Final Expense plans are perfect for:
Seniors looking to leave a financial safety net
Individuals who want simple, affordable life insurance
Families who wish to prevent financial hardship after loss
Benefits of Final Expense Insurance
Some important benefits are:
Covers funeral, medical, and other end of life expenses.
Easy approval with no medical exam and fixed premiums.
Lifetime coverage that protects your family from financial stress.