Final Expense Insurance: A dignified plan for end-of-life costs.

Losing a loved one is emotionally devastating. Worrying about how to pay for their funeral shouldn’t add to that burden.

Final Expense Insurance (often called “Burial Insurance” or “Funeral Insurance”) is a specialized type of whole life insurance designed to solve one specific problem: paying for end-of-life costs so your family doesn’t have to.

Unlike a large term policy intended to replace a breadwinner’s income for 20 years, final expense policies are smaller (typically $5,000 to $40,000) and easier to qualify for.

Why Do You Need It? The Real Costs in 2026

Many families assume their savings or Social Security will handle funeral costs. Unfortunately, the reality is often quite different:

• Social Security Death Benefit: A one-time payment of only $255 (if eligible).
• Medicare/Medicaid: Pays $0 toward funeral costs.
• Average Funeral Cost: According to the NFDA, a traditional funeral with viewing and burial now averages over $8,300—not including the cemetery plot, which can add another $2,000–$5,000.

How Final Expense Policies Work

These policies are built for stability. Many final expense policies provide three common features that term life insurance does not:

1. Fixed Premiums: Premiums are typically level and do not increase as you get older.
2. Permanent Coverage: The policy can stay in force for life as long as premiums are paid.
3. Fixed Benefit: The payout amount is generally level once the policy is active.

”Simplified Issue” Underwriting

Many final expense plans use simplified underwriting. A medical exam is often not required, and approval is based on health questions plus electronic records.

• The Process: You answer a few health questions on the application.
• The Check: The carrier may run an electronic prescription check and MIB (Medical Information Bureau) scan.
• The Decision: Some approvals are same‑day or within a few business days.

Types of Plans: Immediate vs. Graded

Not all policies pay out immediately. It is crucial to understand which tier you qualify for:

1. Level Benefit (Immediate Coverage)

• Who it’s for: People in good to fair health (e.g., controlled high blood pressure is fine).
• How it works: Coverage typically begins once the policy is active and premiums are paid.
• Cost: Lowest rates.

2. Graded Benefit (Waiting Period)

• Who it’s for: People with serious recent health issues (e.g., heart attack in last 12 months, recent cancer treatment).
• How it works: If you die from natural causes in the first 2 years, the carrier refunds your premiums plus interest (usually 10%). After 2 years, the full benefit is paid.
• Exception: Accidental death is usually covered 100% from Day 1.

3. Guaranteed Issue (No Questions)

• Who it’s for: People who cannot qualify for other coverage due to terminal illness or severe conditions.
• How it works: No health questions. Acceptance is typically guaranteed for eligible ages, with a waiting period before full benefits apply.
• Cost: Most expensive option with a common 2-year waiting period.

Sample Monthly Rates (Estimates)

Pricing depends heavily on age, gender, and tobacco use. Here are typical monthly estimates for $15,000 of Level coverage (Day 1 protection):

Age	Male (Non-Smoker)	Female (Non-Smoker)
55	$45 - $55	$35 - $42
60	$58 - $68	$44 - $52
65	$75 - $88	$55 - $65
70	$98 - $115	$72 - $85
75	$135 - $155	$98 - $115

Note: Smokers often pay more. Rates vary by carrier and are subject to underwriting approval.

The “Beneficiary” Advantage

One often overlooked benefit is speed. When beneficiaries are named, life insurance proceeds often avoid probate and can be paid more quickly than many other assets.

• Timeline: Most final expense claims are paid within 3-5 business days of receiving the death certificate.
• Use of Funds: The beneficiary can use the money for anything—funeral home deposits, cemetery costs, or even flying family members in for the service.

Next Steps: How to Secure Coverage

1. Estimate Your Need: Use our Burial Cost Estimator to calculate the total cost of your desired service.
2. Determine Budget: A policy you cancel because it’s too expensive helps no one. Pick a monthly premium you can comfortably afford forever.
3. Apply: Complete the Quote Form. Our licensed specialists will call to ask the health questions and match you with the right carrier for your specific medical history.

Expert Tip: If you have decent health, avoid “Guaranteed Issue” plans found on late-night TV. They are often 40% more expensive than the “Simplified Issue” plans we offer. Always check if you qualify for Level coverage first.