What Is Final Expense Insurance?

Final Expense Insurance, also known as burial insurance or funeral insurance, is a type of whole life insurance policy designed to cover the costs associated with one's funeral and other related expenses. This can include not just the funeral service, but also burial or cremation costs, outstanding medical bills, and even legal fees. These policies are especially targeted towards easing the financial burden on families during a difficult time.

Age Range: Most final expense insurance policies are aimed at individuals typically between the ages of 40 and 80, though some insurers may offer policies to people outside this age range.
Health Considerations: Final expense insurance often requires no medical exam, making it an attractive option for those who might not qualify for traditional life insurance due to health issues. However, insurers may ask a few health-related questions to determine eligibility and premium rates. There are also "guaranteed issue" policies where no health questions are asked, but these typically come with higher premiums and possibly a graded death benefit (meaning the full benefit might not be available until after a certain period of policy ownership, often two years).

Age: Older applicants generally pay higher premiums.
Gender: Typically, women pay lower premiums than men due to longer life expectancies.
Health Status: Though no medical exam is required, health questions can influence premiums. Those in better health may receive lower rates, while guaranteed issue policies, which ask no health questions, are more expensive.
Coverage Amount: The death benefit for final expense insurance is usually between $2,000 and $25,000, with premiums increasing for higher coverage amounts. Most people choose a benefit amount that covers their expected funeral expenses and any other small debts they wish to settle.