Final Expense Insurance

Small whole life policies of roughly 5,000 to 25,000 dollars designed to cover funeral and end of life costs.

Overview

Acceptance is simplified or guaranteed, meaning no medical exam and often no health questions, with guaranteed issue versions charging more and grading benefits: if death occurs within the first two or three years, payout may be limited to returned premiums plus interest. Premiums are level for life and the policy builds modest cash value. It is sold mainly to seniors who lack other coverage or want to spare family burial costs, which average around 8,000 dollars in the United States with funeral and plot. Because coverage per premium dollar is poor compared to medically underwritten life insurance, healthier applicants often do better with a small standard whole life policy.