What Is Final Expense Insurance?
Final expense insurance is a type of whole life insurance with smaller coverage amounts (typically $5,000 to $50,000) designed specifically to cover funeral and burial costs, outstanding medical bills, and other end-of-life expenses. It features simplified underwriting, which means most applicants can qualify with just a health questionnaire and no medical exam.
How It Works
You answer a short health questionnaire (no medical exam required in most cases). Coverage amounts are smaller, typically $5,000 to $50,000. Premiums are fixed for life. The death benefit is paid directly to your beneficiaries, who can use it for any purpose, though it is designed to cover funeral costs, debts, and final medical bills.
Who Is It For?
- Seniors (50-85) who want to cover funeral and burial costs
- People who may not qualify for traditional life insurance
- Anyone who wants to avoid burdening family with final expenses
- Those looking for small, affordable permanent coverage
- People who want coverage without a medical exam
Pros & Cons
- No medical exam required (simplified underwriting)
- Easy to qualify — acceptance rates are high
- Fixed premiums that never increase
- Permanent coverage (does not expire)
- Quick application process
- Covers funeral costs so family is not burdened
- Lower coverage amounts ($5K-$50K)
- Higher cost per dollar of coverage compared to term
- Some policies have a graded benefit (reduced payout in first 2 years)
- Not suitable for large coverage needs
What Affects the Cost?
- Age at purchase (available up to age 85)
- Health questionnaire answers
- Coverage amount selected
- Whether policy is guaranteed issue or simplified issue
- Smoking/tobacco status
Typical cost: $30-100/month for $10,000-$25,000 in coverage
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