💐 What Is Final Expense Insurance?
Final expense insurance (also called burial insurance or funeral insurance) is a small whole life policy designed to cover end-of-life costs so your family isn't burdened.
Typical Coverage
$5K-$25K
Average Funeral Cost
$10,000-$15,000
Monthly Premium
$30-$70
What Final Expense Covers
⚰️ Funeral & Burial
Casket, embalming, service, burial plot, headstone—average $10,000-$15,000.
🏥 Medical Bills
Unpaid hospital bills, hospice costs, medications from final illness.
💳 Outstanding Debts
Credit cards, personal loans, or other debts that could burden family.
⚖️ Estate/Legal Costs
Probate fees, attorney costs, estate administration.
Best Final Expense Companies
Mutual of Omaha
Industry leader in final expense. Level premiums, no waiting period if you qualify for simplified issue.
Gerber Life
Guaranteed acceptance option available. Known for straightforward policies.
Colonial Penn
Guaranteed acceptance, no health questions. Popular from TV ads but more expensive.
Simplified vs Guaranteed Issue
Simplified Issue (Recommended)
- How it works: Answer health questions, no exam
- Premiums: Lower than guaranteed
- Death benefit: Full amount from day one
- Best for: Most seniors without major conditions
Guaranteed Issue (Last Resort)
- How it works: No questions, everyone accepted
- Premiums: 2-3x higher than simplified
- Death benefit: 2-year waiting period*
- Best for: Those who can't qualify elsewhere
*If you die in years 1-2, family gets premiums back + interest, not full benefit
Is Final Expense Insurance Worth It?
✓ Consider It If:
- • You have no savings for funeral costs
- • You don't want to burden your family
- • You're over 50 and can't get term insurance
- • You have specific end-of-life wishes
✗ Skip It If:
- • You have savings/investments for final costs
- • You have existing life insurance
- • Your family can afford your funeral
- • You'd rather prepay funeral directly
FAQs
What's the difference between final expense and term life?
Final expense is permanent whole life (lasts forever, builds tiny cash value). Term life is temporary (10-30 years). Final expense covers smaller amounts ($5K-$25K) while term covers larger amounts ($100K-$1M+). For seniors who can't get term, final expense is often the only option.
Is prepaying a funeral better than final expense insurance?
Prepaid funeral plans lock in today's prices and guarantee services. However, they're not portable if you move, and the funeral home could go out of business. Final expense insurance gives your family flexibility to choose any provider. Many people do both—prepay basic services and have insurance for extras and unexpected costs.
The Bottom Line
Final expense insurance makes sense if you want to spare your family the $10K-$15K funeral burden. Simplified issue (Mutual of Omaha) is the best value—full benefits from day one. Guaranteed issue costs more and has a 2-year waiting period, but accepts everyone. If you have savings for final costs, you may not need it.