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Final expense policies don’t expire like term policies because they are a type of whole life insurance. 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.

Enrollment is as easy as getting your free quote on this page and having one of our brokers contact you to finalize the application!

The average final expense policy costs between $30-$70 a month and depends on your age, sex, health, coverage amount, and life insurance company you choose. If you have significant health conditions or are over the age of 70, your premium will probably be higher and may cost between $70-$120 a month (though it may be less). Younger applicants who are in good health may qualify for rates in the $20-$50 range. Remember, a cheaper rate usually means fewer features and benefits for surviving loved ones. A few extra dollars a month could make a big difference in the support your family receives when you’re gone.

Cost is often the #1 factor people focus on…but it’s not the most important factor! Instead of focusing on how much the policy is going to cost, look at how many expenses will be left behind and how much they’ll cost your family. Common expenses include medical bills, credit card debt, and funeral costs. We’ll cover each of these costs below.

 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, 80% 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 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.

73% of 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 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.

Traditional life insurance is often used to leave your family enough money after you pass away and is often proportionate to the income your family would lose with your passing. Term insurance is the most common type of income replacement and can have face amounts in the millions of dollars.

Final expense life insurance is different. It’s uncommon for a final expense policy to be more than $20,000 because it focuses on paying for a very specific debt: funeral or cremation arrangements.

Families often expect their loved one’s estate will cover the cost of the funeral or that the funeral won’t cost much. But most families don’t realize the average cost of a funeral can be $9,000 or more. Final expense insurance can help reduce these costs and prevent families from emotionally overspending, especially when they know there’s a designated amount available.

 If you’re over 40 and need money to cover your final expenses and funeral costs, final expense life insurance is a perfect fit. Because the death benefit of the policy (typically $5,000-$20,000) tends to be less than the benefit of traditional insurance, the premiums tend to be more affordable for those on a fixed budget.

This makes it an attractive option for seniors looking to cover their end-of-life expenses. It’s a kind of permanent insurance – it doesn’t expire if premiums are paid – and it accumulates a cash value over time.

But this type of insurance isn’t just for seniors. Anyone concerned about leaving their loved ones unprepared when they pass should consider taking out a life insurance policy on themselves. Getting multiple quotes – including a final expense quote – can help you determine what type of life insurance is best for you.

If you’re independently wealthy or have enough set aside in savings, you may not need final expense insurance. Just keep an eye on rising funeral costs and always make sure you stay up-to-date on current costs.

If you’re over the age of 85, in hospice care, or currently hospitalized you may not be able to qualify. Certain health conditions such as terminal illness or AIDS may also prevent you from qualifying.

 This type of life insurance is best for seniors because of its focus on covering funeral costs and other end-of-life expenses. You may have seen this type of coverage offered as burial insurance or funeral insurance, but these are the same as final expense insurance.

Final expense is best for seniors because it’s affordable, usually offers a no-medical exam qualification, and can help with planning certain aspects of their final arrangements (choosing a funeral home, flowers, music, etc.).

• Focuses on after-life preparedness. 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.
• Final expense insurance is a type of whole life policy. 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.
• It’s more affordable than many other insurance policies. Because it’s typically used to cover funeral costs, the coverage amount is usually much smaller than traditional policies. On average, people insure themselves for $10,000 – $20,000, making the premiums for a final expense policy more affordable than larger policies.
• Easy qualification. 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.