Final expense insurance 101
A plain-English guide to burial insurance for seniors, what it covers, what it costs, and how to pick the right plan without the sales pitch.
What is final expense insurance?
Final expense insurance is a small whole life policy, usually $2,000 to $50,000, built to cover the bills your family is left with when you pass away.
Unlike traditional life insurance, it's designed for seniors on a fixed income. No medical exam. Just a few health questions. Your rate is locked in for life, and your coverage never expires as long as premiums are paid.
Every policy has the same four parts:
- Insured
- The person the policy covers, usually you.
- Beneficiary
- The person (or people) who receive the payout. Most seniors name a spouse or adult child.
- Premium
- The monthly payment that keeps the policy active. Miss payments and the policy lapses.
- Death benefit
- The tax-free lump sum paid to your beneficiary, typically within days of a claim.
What does it actually pay for?
The average funeral in the U.S. runs $7,000 to $12,000. Final expense covers that and more:
- •Funeral, burial, or cremation
- •Cemetery plot and headstone
- •Outstanding medical and hospice bills
- •Credit card balances and small debts
- •Everyday bills your family shouldn't inherit
What are my options?
Nearly every senior qualifies for one of these three plan types. The right one depends on your health.
Level benefit
Full coverage from day one. Best rates. For seniors in reasonably good health, no major recent hospitalizations.
Graded benefit
Partial payout in year one and two, full payout after. For seniors with some health conditions who don't qualify for level.
Guaranteed issue
No health questions. Everyone approved ages 45 to 85. Two-year waiting period before full benefit is paid.
How much does it cost?
A monthly premium depends on five things:
- Age, the younger you buy, the lower the lifetime rate.
- Gender, women typically pay less.
- Health, determines which plan tier you qualify for.
- Tobacco use, non-smokers pay significantly less.
- Coverage amount, most seniors choose $10,000 to $25,000.
A healthy 65-year-old woman can usually get $10,000 of level coverage for around $35 to $50 per month. Your rate never goes up.
How much coverage do I need?
Add up funeral costs, outstanding medical bills, and any debts you'd leave behind. Subtract what's already in savings. The gap is what your policy should cover.
Why work with us?
We're independent, so we shop nearly every A-rated insurer in your state and bring back the lowest rate you qualify for. You pay nothing for our help, the insurance company pays us if you decide to buy.
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