What is final expense insurance?
Final expense insurance is permanent life insurance with a smaller death benefit intended to help beneficiaries cover funeral costs and other expenses after your death. Policies are commonly sold on a simplified or guaranteed issue basis, so you may not need a medical exam or answer medical questions. Coverage amounts, premiums, and health requirements vary by insurer and product.
Final expense policies commonly fall into two underwriting categories:
Simplified issue: You don't take a medical exam, but you answer health questions. The insurer approves or declines you based on your answers and other permitted underwriting information.
Guaranteed issue: You don't take a medical exam or answer health questions. If the policy's basic eligibility requirements are met, acceptance is guaranteed. These policies often have lower coverage limits and a graded death benefit for nonaccidental death during the first two years.
Who should buy final expense insurance?
Final expense insurance is a good fit if you mainly need life insurance to cover funeral costs and other small bills rather than to replace years of income. It's especially worth considering if you're older, have limited savings, or have health problems that make it difficult to qualify for traditional life insurance.
We recommend getting final expense life insurance if:
- You’re a senior or retired. If you’re in your golden years and no longer eligible for traditional coverage, final expense insurance ensures that your funeral, burial, and other related expenses are taken care of without depleting your savings or retirement funds.
- You have limited savings. If you haven’t saved enough to cover end-of-life expenses, final expense insurance can provide a financial safety net for your family.
- You have serious health concerns. Even people with serious medical conditions are eligible for final expense insurance, making it a viable option for people with health conditions that prohibit them from getting traditional coverage.
You should opt for traditional life insurance if:
- You’re young and in good health. Younger, healthier individuals who qualify for traditional term or whole life insurance can get more extensive coverage at a more affordable price. Final expense insurance costs more for less coverage.
- You have significant savings or investments. If you have substantial savings, investments, or other financial assets set aside, you likely don’t need a separate final expense insurance policy. Your existing funds can cover these costs without the need for additional insurance.
- You need substantial coverage. Final expense insurance typically offers lower coverage amounts, up to $50,000. If you need a policy with a higher payout, traditional life insurance — which can go into the millions — is a better fit.
How much does final expense insurance cost?
A $25,000 final expense policy costs an average of $1,760 a year for a 70-year-old female and $2,351 a year for a 70-year-old male. For 65-year-olds, the average annual cost is $1,364 for females and $1,770 for males, according to Compulife 2026 data.
The table below shows average annual rates by age for a $25,000 final expense policy, based on Compulife data.
| Age | Female | Male |
|---|---|---|
| 65 | $1,364 | $1,770 |
| 70 | $1,760 | $2,351 |
| 75 | $3,289 | $2,438 |
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Pros and cons of final expense insurance
Final expense insurance provides lifelong coverage with a relatively small death benefit and fewer underwriting requirements than many traditional life insurance policies. It may help your family pay funeral costs, medical bills, and other final expenses, but it usually costs more per dollar of coverage. Guaranteed-issue policies may also limit the nonaccidental death benefit during the first two policy years.
Pros:
- Simplicity. You can quickly buy a final expense insurance policy online or over the phone.
- Guaranteed acceptance. There is no medical exam for most policies.
- Available to older applicants. Most companies will sell policies up to age 80 or 85.
- Level premiums. Premiums don’t increase over time; as long as you pay them, coverage won’t expire.
Cons:
- Limited benefit period. There is usually a two-year period during which benefits under the policy are limited.
- Coverage limits. Final expense policies have smaller death benefits, so they aren’t a good fit for anyone needing a larger death benefit.
- You could overpay. Life insurance that doesn’t require a medical exam is more expensive because it’s a blind risk for the insurance company. If you’re healthy and young, you’ll likely get a better rate through the exam.
- It’s not the best investment. You might do better to put the money into another type of investment and have more than enough for final expenses by the time you die.
If you want to ensure your funeral expenses are covered and don't have a better way of putting money aside, final expense insurance might be the right choice.
FAQ: Final expense life insurance
When should I buy a final expense insurance policy?
You can purchase a final expense insurance policy anytime between the ages of 45 and 85, but should buy as young as you can to get lower rates. However, you may be better served by a different type of policy at a younger age.
When does final expense insurance coverage start?
Final expense insurance coverage starts as soon as your policy is issued and in force, but the full death benefit isn't always immediately available. Simplified-issue level-benefit policies provide full coverage from the start, while guaranteed-issue or graded-benefit policies often limit nonaccidental death benefits during the first two years.
What are considered final expenses?
Funeral and related costs are the main final expenses. Others may include medical bills, debts, long or short-term care expenses that were outstanding when the insured died, and any other expenses left behind.
