When planning for the future, it’s natural to think about what will happen to your loved ones when you’re gone. One of the most important decisions to make is how your final expenses—like your funeral, burial, or even medical bills—will be covered. This is where final expense life insurance comes in. Often referred to as “burial insurance,” final expense insurance is a whole life insurance policy designed specifically to cover the costs associated with end-of-life services. It provides peace of mind for you and your family by ensuring that financial burdens won’t fall on your loved ones during a difficult time.
This can include everything from the casket, cremation, funeral home services, to the actual burial or cremation.
If there are outstanding medical expenses from a recent illness or hospitalization, the insurance proceeds can help settle those.
In cases where family members need to travel for a funeral, final expense insurance can cover some of those costs as well.
Now that we’ve covered the basics, let’s break down what you can expect from a typical final expense life insurance policy.
Unlike term life insurance, which only covers you for a certain period, whole life insurance offers coverage for your entire life—as long as you continue to pay the premiums. This means you won’t have to worry about the policy expiring before you need it.
One of the biggest benefits of final expense life insurance is that your premiums remain fixed. Unlike some types of life insurance, where the cost can increase as you age, the premiums for a whole life policy are consistent. This helps you budget and plan for the future without worrying about rising costs.
As your whole life insurance policy matures, it accumulates cash value. This is essentially a savings component that grows over time. You can borrow against it, use it to pay premiums, or even cash it out if needed. However, any loans or withdrawals will affect your death benefit, so it’s important to manage it carefully.
One of the most attractive features of final expense life insurance is that it typically doesn’t require a medical exam. Instead, you’ll just need to answer a few health-related questions on the application. This means faster approvals and fewer hurdles when securing coverage.
Most final expense life insurance policies are designed for ease of access, meaning you can get approved in just a few days. Additionally, these policies are generally quite affordable, especially for those who are looking for basic coverage to help cover end-of-life expenses.
Final expense insurance is especially beneficial for:
Who may not qualify for traditional life insurance due to age or health concerns.
Without burdening their family members.
Without the complexities of larger whole life or term life insurance.
Final expense life insurance can be an excellent way to ensure your loved ones won’t have to bear the financial weight of your passing. With guaranteed coverage, fixed premiums, and no medical exams, it’s a practical solution for those who want to make their final days as stress-free as possible.
Qualifying for a final expense policy is often easier than qualifying for other types of life insurance (such as term insurance). But there are still important questions to ask, such as:
Final expense policies don’t expire like term policies because they are a type of whole life insurance (learn how whole life insurance works). Your coverage won’t expire as long as you pay your premiums.
In most cases, a medical exam isn’t required to qualify because the face amount is typically under $50,000. Coverage is usually issued based on the applicant’s answers to health questions on the application.
Depending on the life insurance company, your final expense policy may have added features such as child riders, accidental death and dismemberment, or support benefits for surviving loved ones such as funeral price shopping. Not all policies are the same, so make sure you review the policy’s benefits carefully.
The hardest thing we must ever face is the death of a loved one. On top of this, surviving loved ones are often left to handle any end-of-life medical expenses and funeral costs. These expenses can add to the sense of grief and stress surviving friends and family members feel. Final expense life insurance was created to prevent this added pressure.
Even though final expense insurance focuses on covering funeral costs, the death benefit can be used for anything: medical bills, credit card debt, mortgage payments, etc. How the death benefit is spent is ultimately up to the beneficiary of the life insurance policy.
Because you want to leave memories not bills; see if you qualify for up to $50,000 in death benefit to help cover funeral, burial and other final expenses
Medical Bills
The current state of the healthcare industry has led to higher prescription costs, expensive medical procedures, and health insurance that doesn’t always cover consumer needs.
Of the 2.85 million people who died in the U.S. in 2019, more than eighty percent were on Medicare before they passed. A disproportionate share of Medicare spending occurs in the last year of life, covering costs related to chronic conditions, inpatient hospitalizations, and hospice care.
But government programs like Medicare and Medicaid only cover about two-thirds of healthcare spending by the elderly, according to the National Bureau of Economic Research. The report, which is based on data collected through the Medicare Current Beneficiary Survey between 1996 and 2010, found that healthcare spending for people aged 65 and over was approximately $18,424 per person, per year.
Medicare paid an average of $153 per day, per person, in 2016 to cover hospice care, in the following categories:
Routine home care – $193 per day for services that patients need on a day-to-day basis.
Continuous home care – $41 per hour for services during crises or at least eight hours a day to manage acute symptoms.
Inpatient respite care – $173 per day to relieve unpaid caregivers on an occasional basis for no more than five days at a time.
General inpatient care – $744 per day for care that cannot be provided in other settings.
Patients may still be responsible for co-payments, prescription drugs, emergency care, inpatient facilities, nursing care, and other end-of-life expenses. This leaves many people with a significant financial obligation that they can’t always afford. Final expense life insurance can help protect loved ones from the financial responsibility of any outstanding medical bills.
Debt
73% of American consumers die in debt according to research from Experian FileOne and Credit.com. The average total balance left is roughly $61,554 (including mortgages). Unfortunately, this debt doesn’t just disappear. In most cases, the estate pays off as many debts as possible before any assets are distributed to the surviving family.
Here’s the average breakdown of consumer debt according to the research:
Student Loans = $25,391
Auto Loans = $17,111
Personal Loans = $14,793
Credit Card Debt = $4,531
Family members who count on the deceased’s assets to cover the final arrangements are often surprised to learn that there isn’t enough left over once all of the deceased’s bills have been paid.
Most life insurance policies aren’t designed to specifically address the many costs family members pay when preparing for a funeral. Caskets alone can cost up to $10,000 depending on the style and material. This doesn’t include other typical funeral costs like transportation, preparation of the body, grave liners, flowers, or the headstone. A final expense policy can help with these costs and protect your family from experiencing a financial burden.
For most traditional whole life policies, the death benefit and the insurance premium remain the same for the life of the policy. Most whole life policies last for the life of the policyholder and some accumulate cash value. Whole life insurance is often called “permanent life” because the term of the policy isn’t limited to a specific time frame like term insurance.
Because the coverage amount is lower than other types of life insurance, some final expense policies don’t require a medical exam to qualify. Most policies can be issued based on answers to health questions on the life insurance application. One of the main drawbacks of final expense is its face amount is much lower than other types of life insurance like term insurance. And keep in mind the beneficiary can use the death benefit for anything – even if you took out the policy to help cover your funeral costs.
Even if you have a preexisting condition we may be able to find coverage for you
Your beneficiary can use the death benefit for anything, but it’s typically used to cover funeral or cremation expenses.
Final expense is a type of whole life insurance and usually has a smaller face amount than traditional insurance. It focuses on covering end-of-life expenses while most life insurance policies focus on income replacement.
It works like most other types of life insurance: there’s an application process and a review/approval process by the insurer. The death benefit is paid to the primary beneficiary once the claim is approved.
It depends on the insurance company. Most people can get coverage until they turn 85. There are some companies that insure someone over the age of 85, but be prepared to pay a very high premium.
Final expense insurance doesn’t guarantee a certain amount of money towards funeral costs – 100% of the death benefit goes to the primary beneficiary. If you do any kind of funeral planning in advance, you can document your final wishes for your primary beneficiary and show how much of the policy benefit you want to go towards final arrangements.
The process is typically the same at every age. Most insurance companies require an individual be at least 30 days of age to apply for life insurance.
It’s difficult to say what the average premium will be. Your insurance rate depends on your health, age, sex, and how much coverage you’re taking out. A good estimate is anywhere from $40-$60 a month for a $5,000 – $10,000 policy.
Rates for smokers are usually 30% higher than a non-tobacco rate. Tobacco rates are higher no matter what type of life insurance you take out. The older you are, the higher your tobacco rate will be.
Final expense insurance lifts a financial burden from families grieving the loss of someone they love. If you want to provide those you care about a safety net during their time of grief, this policy type is a great option.
The cost of final expense insurance depends on a variety of factors, including.
Your age plays a significant role in determining the premium amount. As a general rule, the younger you are when you apply, the lower your premium will be. This is because younger individuals are considered to be at a lower risk of passing away soon, making their premiums more affordable.
For example, someone in their 40s will likely pay much less than someone in their 70s for the same level of coverage.
Your current health status also impacts the price of final expense insurance. If you are in good health, you’ll pay less. On the other hand, if you have serious health conditions (like diabetes, heart disease, or cancer), your premiums may be higher. Smokers, in particular, are charged higher rates due to the increased health risks associated with smoking.
In some cases, premiums for women may be slightly lower than those for men, as women tend to live longer than men on average. However, this difference isn’t as pronounced as other factors like age or health.
The amount of coverage you choose will also affect your premium. Higher coverage amounts (such as $20,000 or more) will generally cost more than lower amounts (such as $5,000). However, the cost difference can often be manageable, and a larger policy can give your family more financial security.
Different insurance providers may have different pricing models. That’s why it’s important to shop around for quotes and compare rates. While some companies may offer competitive pricing, others may offer better customer service or more comprehensive policy features.
Based on your age, gender, health, and coverage amount, the average cost for final expense life insurance ranges between $30 and $70 per month for healthy individuals.
However, premiums can rise if you have health issues or are over the age of 70. In these cases, your premiums could range from $70 to $120 per month, but this is not always the case—some people may still be able to get more affordable rates depending on their health status and the insurance company.
Remember, you should always check for free estimates to get a better idea of your potential costs. Many providers offer no-obligation estimates with no questions asked, so you can get an accurate figure without any commitment.
Most final expense insurance policies have age restrictions. Typically, the age range for applicants is 40 to 85 years old. You can apply for coverage at any age within that range, but as mentioned earlier, premiums will be much lower for younger applicants.
One of the biggest concerns people have when purchasing a final expense policy is the fear of paying more than the death benefit. It’s natural to wonder, “If I’m paying premiums for years, will the payout actually be worth it?”
This concern often prevents people from getting coverage when they should. The truth is, final expense insurance is designed to give you peace of mind, ensuring that your family won’t have to bear the financial burden of your final expenses. While the premiums may add up over time, they are usually much more affordable than a traditional life insurance policy, and the death benefit can relieve your loved ones from having to worry about covering your funeral, burial, or other end-of-life expenses.
It’s also important to note that final expense insurance is typically much easier to obtain than other forms of life insurance, so it’s worth considering even if you have concerns about costs.
If you’re concerned about the cost of final expense insurance, remember that the premiums are relatively low compared to the peace of mind you gain. When you choose the right coverage amount for your needs and work with an insurance provider that offers competitive rates, final expense insurance can be an affordable and practical solution.
For anyone worried about leaving behind financial burdens, this type of coverage can be a worthwhile investment. And don’t forget—free estimates are available, so you can explore your options without obligation or hassle.
Planning for end-of-life expenses can be overwhelming, but understanding the costs of a funeral service is an important part of that process. Whether you’re considering a traditional burial or cremation, knowing what to expect can help you make informed decisions and avoid unexpected financial burdens for your family.
This involves preparing the body, filing necessary paperwork (like death certificates), providing transportation to the cemetery, and conducting the service. Funeral homes usually handle these tasks.
This is the plot of land where the deceased will be buried. This part of the service is often handled by cemeteries, though some funeral homes also offer burial services.
While it may seem convenient to purchase both your funeral services and burial plot from the same cemetery, this option can often be more expensive than using a funeral home that isn’t directly associated with the cemetery. Cemeteries that sell both plots and services tend to mark up prices, so shopping around for a funeral home that works independently of the cemetery can help you save money while still getting the quality service you need.
This service involves cremation followed by a memorial ceremony. The ceremony typically takes place after the cremation, with the ashes present, often along with a portrait of the deceased. This option allows loved ones to gather and celebrate the life of the deceased, even after the cremation.
A cremation with ceremony provides a meaningful way to honor the deceased without the higher cost of a traditional burial.
Several factors can influence the cost of funeral services, including:
Funeral costs can vary significantly based on where you live. Urban areas tend to have higher prices compared to rural areas.
Prices can vary depending on whether you choose a larger funeral home, an independent one, or one that is affiliated with a cemetery.
The type of service you choose, whether it’s a direct cremation or a full traditional service, will directly impact the final cost.
The quality and style of the casket or urn you select can influence the total price.
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Final expense insurance is a whole life policy that pays medical bills and funeral expenses when you die. It’s also known as burial or funeral insurance. It’s a popular choice among seniors.