Final expense insurance (sometimes called burial insurance or funeral insurance) is a small whole life insurance policy designed to cover end-of-life costs so your family isn’t left with the financial burden.

Here’s how it works, step by step:

1. You Buy a Policy

• Typically purchased by seniors (ages ~50–85)

• Coverage amounts are usually $5,000 to $50,000

• Premiums are fixed and never increase

• Policy stays in force for life as long as premiums are paid

2. Premiums Are Paid

• Paid monthly, quarterly, or annually

• Cost is based on:

  • Age

  • Gender

  • Health (for simplified or guaranteed plans)

• Many policies don’t require a medical exam, just health questions

3. Coverage Builds Cash Value

• Final expense is a whole life policy

• Part of your premium builds cash value

• Cash value:

  • Grows tax-deferred

  • Can be borrowed against if needed

4. When the Insured Passes Away

• The insurer pays a tax-free death benefit to your beneficiary

• Funds are usually paid within days to weeks

5. Money Is Used for Final Expenses

Your beneficiary can use the money for:

• Funeral and memorial services

• Burial or cremation costs

• Medical bills

• Outstanding debts

• Legal or estate costs

• Any other immediate expenses

There are no restrictions on how the money is used.

Types of Final Expense Insurance

1. Simplified Issue

• Health questions

• No medical exam

• Immediate full coverage

2. Guaranteed Issue

• No health questions

• Higher premiums

• Usually includes a 2–3 year waiting period

  • If death occurs during this period, premiums plus interest are returned

Who Final Expense Insurance Is Best For

• Seniors on a fixed income

• Those who don’t qualify for traditional life insurance

• Anyone wanting to:

  • Protect family from funeral costs

  • Leave a small legacy

  • Lock in affordable coverage later in life

Key Advantages

• ✔ Lifetime coverage

• ✔ Fixed premiums

• ✔ Fast payout

• ✔ No medical exam options

• ✔ Peace of mind for loved ones