What Is Final Expense Life Insurance? Step-by-Step Guide to What You Need to Know in 2025 + YouTube Video
Senior life insurance policies can help cover funeral expenses and other final costs like medical bills, mortgage
payments, and credit card debt.
Planning for the future is crucial, especially for seniors and their families. One important aspect that is often overlooked is preparing for end-of-life expenses.
Final expense insurance, also known as funeral or burial insurance, is a valuable financial tool designed to provide peace of mind and ensure these costs are covered.
This step-by-step guide will explain what final expense insurance is, who needs it, the benefits it can offer, and how to choose the right policy.
Table of Contents
- Frequently Asked Questions & Answers
- Watch Our Informative YouTube Video
- Final Expense Sample Rates & Charts
- How Does Final Expense Work?
- Benefits of Final Expense Insurance
- Types of Policies to Consider
- Best Companies to Apply With
- Factors Affecting Premiums
- How Much Does a Funeral Cost?
- Our Final Thoughts
Frequently Asked Questions – Final Expense Life Insurance
Our frequently asked questions section will answer many of your questions.
1. What is final expense life insurance?
Final expense life insurance is a simple type of life insurance that helps cover the costs of your funeral, burial, and other end-of-life expenses. It’s meant to make things easier for your loved ones when you pass away.
2. How does final expense life insurance work?
You pay a small monthly amount, and when you pass away, your family receives a cash payment. They can use this money to pay for funeral costs, medical bills, or any other expenses.
3. Who should consider final expense life insurance?
This insurance is designed for seniors who want to make sure their family isn’t left with bills for funeral or burial costs. It’s especially helpful if you don’t already have life insurance or savings set aside for these expenses.
4. How much coverage do I need?
Most people choose coverage between $5,000 and $25,000, depending on the type of funeral or service they want. Think about what you’d like to do and any other bills you might want to help your family with.
5. How much does final expense life insurance cost?
The cost depends on your age, health, and how much coverage you want. Many plans are very affordable, with fixed monthly payments that won’t go up as you get older.
6. Do I need a medical exam to qualify?
Most final expense policies do not require a medical exam. You’ll usually just need to answer a few simple health questions, making it easy and stress-free to apply.
7. How quickly does the coverage start?
Many policies start right away or within a few days after you’re approved. Some plans have a short waiting period before full benefits are paid, so it’s good to ask about this.
8. How does this help my family?
When you pass away, your family receives money to help pay for your funeral and other bills. This means they won’t have to worry about coming up with money during a difficult time.
9. Is final expense insurance different from regular life insurance?
Yes. Final expense insurance is usually less expensive and easier to get than traditional life insurance. It’s designed to cover funeral costs and is often more affordable for seniors.
10. Are there any common myths I should know about?
Yes! Some people think you can’t get life insurance if you’re older or have health problems, but final expense insurance is designed for seniors and is often available even if you have health issues. It’s also not just for burial costs—your family can use the money for any need.
11. Can I choose who receives the money?
Yes, you can name anyone you trust as your beneficiary. This person will receive the money and can use it as they wish.
12. What happens if I change my mind?
Most policies give you a short “free look” period (often 10–30 days) where you can cancel and get your money back if you decide it’s not right for you.
If you have more questions or want to talk about your own situation, I’m always here to help—no pressure, just friendly advice! 708-334-6226
Explore the Major Advantages of Working With an Independent Insurance Agent | YouTube Video
Don’t Let the Terminology Confuse You
Navigating through the variety of names for these life insurance products can be confusing, especially for seniors (and their agents).
It’s important to have clear information to make informed decisions without feeling overwhelmed.
Here is a list of names you’re going to see on internet commercials, blog posts and television and they all refer to the exact same product:
- Senior Life Insurance
- Final Expense Life Insurance
- Burial Insurance
- Funeral Insurance
- Pre-Need Insurance
- Senior Whole Life Insurance
Sample Monthly Premiums for Final Expense Life Insurance in (2025)
Below are sample monthly premiums for final expense (burial) life insurance policies for non-smoking males and females ages 65, 70, and 75, in average health.
Rates are estimates from five well-known insurance companies: Gerber Life, Mutual of Omaha, AIG, Foresters Financial, and Transamerica. Coverage amounts shown are $5,000, $10,000, $15,000, and $25,000.
Male – Sample Monthly Premiums
| Age | Company | Coverage | $5,000 | $10,000 | $15,000 | $25,000 |
|---|---|---|---|---|---|---|
| 65 | Gerber Life | $29 | $54 | $79 | $130 | |
| 65 | Mutual of Omaha | $28 | $53 | $78 | $129 | |
| 65 | AIG | $31 | $60 | $89 | $148 | |
| 65 | Foresters Financial | $30 | $58 | $86 | $144 | |
| 65 | Transamerica | $32 | $62 | $92 | $153 | |
| 70 | Gerber Life | $37 | $70 | $103 | $171 | |
| 70 | Mutual of Omaha | $36 | $70 | $104 | $173 | |
| 70 | AIG | $39 | $75 | $111 | $185 | |
| 70 | Foresters Financial | $38 | $73 | $108 | $180 | |
| 70 | Transamerica | $40 | $78 | $116 | $193 | |
| 75 | Gerber Life | $50 | $97 | $145 | $241 | |
| 75 | Mutual of Omaha | $50 | $97 | $144 | $240 | |
| 75 | AIG | $53 | $103 | $153 | $255 | |
| 75 | Foresters Financial | $52 | $101 | $150 | $250 | |
| 75 | Transamerica | $55 | $107 | $159 | $265 |
Female – Sample Monthly Premiums
| Age | Company | Coverage | $5,000 | $10,000 | $15,000 | $25,000 |
|---|---|---|---|---|---|---|
| 65 | Gerber Life | $22 | $41 | $60 | $99 | |
| 65 | Mutual of Omaha | $22 | $41 | $60 | $99 | |
| 65 | AIG | $24 | $45 | $66 | $109 | |
| 65 | Foresters Financial | $23 | $43 | $64 | $105 | |
| 65 | Transamerica | $25 | $47 | $70 | $115 | |
| 70 | Gerber Life | $28 | $53 | $78 | $129 | |
| 70 | Mutual of Omaha | $28 | $53 | $78 | $129 | |
| 70 | AIG | $30 | $57 | $84 | $139 | |
| 70 | Foresters Financial | $29 | $55 | $82 | $135 | |
| 70 | Transamerica | $31 | $59 | $88 | $145 | |
| 75 | Gerber Life | $38 | $72 | $107 | $178 | |
| 75 | Mutual of Omaha | $38 | $72 | $107 | $178 | |
| 75 | AIG | $41 | $78 | $115 | $191 | |
| 75 | Foresters Financial | $40 | $76 | $112 | $186 | |
| 75 | Transamerica | $43 | $82 | $121 | $201 |
About Final Expense Life Insurance Rates
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These are sample rates and your actual premium may vary based on your health, state, company underwriting, and other factors.
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Final expense policies are typically whole life insurance policies, which means your coverage lasts for life and your premium will never increase.
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There are no medical exams required—just a few health questions on the application.
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Final expense insurance is designed to help cover funeral, burial, and other end-of-life expenses, giving your loved ones peace of mind.
If you have questions or want a personalized quote, we can help you compare options and find the best fit for your needs.
Pros and Cons of Senior Life Insurance
The Pros –
Easy to Qualify:
Most final expense policies do not require a medical exam—just a few health questions—making them accessible for seniors and those with health issues.
Fixed Premiums:
Once approved, your premiums are locked in and will not increase for the life of the policy.
Lifetime Coverage:
A type of whole life insurance, final expense policies provide coverage for your entire life as long as premiums are paid.
Quick Payouts:
Claims are typically paid out quickly, often within days, helping families cover funeral expenses promptly.
Flexible Use of Funds:
Beneficiaries can use the death benefit for any purpose, including funeral costs, medical bills, debts, or other expenses.
Affordable for Small Amounts:
Premiums are generally lower compared to traditional whole life insurance, especially for modest coverage amounts.
Cash Value Accumulation:
Many of these policies build cash value over time, which can be borrowed against if needed.
No Expiration:
Policies do not expire as long as premiums are paid, unlike term life insurance.
Living Benefits:
Some policies include living benefit riders, allowing early access to a portion of the death benefit if diagnosed with a terminal illness.
The Cons –
Lower Coverage Amounts:
Death benefits are typically limited, usually ranging from $2,000 to $50,000, which may not be enough to cover all end-of-life expenses or debts.
Higher Cost Per Dollar of Coverage:
Although premiums are affordable for small amounts, the cost per $1,000 of coverage is higher than term or traditional whole life insurance.
Potential Waiting Periods:
Some policies, especially guaranteed issue plans, may have a waiting period (often two years) before the full death benefit is paid for natural causes.
Premiums Can Be High for Older Applicants:
If you purchase a policy at an older age or have health issues, premiums may be higher compared to other life insurance options.
May Not Be Necessary for Everyone:
If you already have adequate savings, a prepaid funeral plan, or another life insurance policy, final expense insurance may not be necessary.
Limited Investment Value:
While these policies build cash value, the savings component is modest compared to larger whole life policies.
Small Death Benefit Might Not Cover All Expenses:
Rising funeral costs may outpace the coverage amount, leaving some expenses unpaid.
Summary –
Final expense insurance offers simple, lifelong coverage with easy qualification and fixed premiums, making it a popular choice for seniors who want to ensure their funeral and other final expenses are covered.
However, coverage amounts are limited, and the cost per dollar is higher than other types of life insurance. It’s best suited for those who need a modest, guaranteed benefit and don’t want to undergo a medical exam.
Who Needs Final Expense Life Insurance?
Final expense insurance isn’t a one-size-fits-all solution, but it can benefit a wide range of individuals, such as:
Seniors With Limited Savings:
Those who haven’t built up sufficient financial reserves for funeral or medical costs.
Those Wanting to Cover Funeral Costs:
The average funeral can cost between $6,500 to over $10,000, and final expense insurance ensures these costs are managed without burdening loved ones.
Individuals Wishing to Leave a Legacy:
Some seniors use their policies to leave behind funds for their families, easing their financial strain.
If you belong to one of these groups or simply want peace of mind knowing your end-of-life expenses are covered, final expense insurance may be a smart choice.
How Does Final Expense Insurance Work?
Final expense insurance works similarly to other life insurance policies. You apply for a policy, pay premiums (either monthly or annually), and in return, the insurance company provides a death benefit when you pass away.
This lump-sum payment is given directly to the beneficiary you’ve selected, such as a family member. Your loved ones can then use these funds to pay for funeral arrangements or settle any final financial liabilities.
Tips for Choosing a Final Expense Life Insurance Policy
Selecting the best policy requires some research and careful consideration. Here are some practical tips to guide you:
Determine Your Coverage Needs:
Before shopping for senior life insurance policies, calculate your expected end-of-life expenses. Factor in the cost of burial or cremation, funeral services, and any outstanding debts you want to make sure are covered. Knowing this amount will ensure you choose the proper death benefit.
Compare Policies from Different Companies:
It’s crucial to shop around and compare offerings from the best life insurance companies. Look for differences in premium rates, coverage amounts, and benefit flexibility. Some companies may offer additional perks, such as free will-preparation services or discounts on funeral arrangements.
Check for Guaranteed Acceptance:
If you have health issues, consider policies with no medical exam requirements. While these typically cost more, they provide peace of mind by ensuring coverage without worrying about being declined.
Review the Provider’s Reputation:
Not all insurance companies are created equal. Look for providers with excellent customer reviews, a strong financial rating, and a history of paying claims promptly. This will save your loved ones from potential hassles down the line.
Understanding Policy Terms:
Always read the fine print. Understand what the policy covers, how long coverage lasts, any waiting periods, and whether premiums will remain fixed. This knowledge will help avoid surprises later on.
Get Multiple Quotes:
Requesting quotes for multiple companies will give you an idea of pricing and help you find the best policy for your budget. Our agency can provide you with quotes over the phone at no cost or obligation.
Benefits of Final Expense Life Insurance
Final expense insurance provides several advantages that make purchasing a policy an excellent benefit for virtually all seniors. Here are some of the valuable benefits:
Covers Funeral Costs and Debts:
Policies are designed to cover expenses such as burial and cremation, unpaid medical bills and any remaining financial liabilities.
Quick Payouts to Beneficiaries:
Beneficiaries typically receive payouts within 24 to 48 hours of claim approval, making it easier to manage immediate financial needs.
Peace of Mind for Seniors and Families:
Knowing these costs are taken care of allows seniors and their loved ones to focus on celebrating a life well-lived rather than worrying about expenses.
Flexible Policy Options:
Policies range from simplified issue to guaranteed issue, ensuring coverage for nearly everyone, even those with pre-existing health conditions.
Legacy and Financial Security:
Beyond covering funeral costs, this insurance can serve as a small financial gift for surviving family members.
Key Features of Final Expense Insurance
Guaranteed Acceptance Options:
Many insurance companies offer policies without requiring a medical exam, making it ideal for those with pre-existing health conditions.
Lifetime Coverage:
Most final expense policies are whole life insurance, meaning coverage lasts for your entire life as long as premiums are paid.
Fixed Premiums:
Premium rates typically don’t increase over time, so you won’t have to worry about costs going up as you age.
Cash Value Accumulation:
Some policies build up a cash value over time, which you can borrow against if needed.
Types of Final Expense Life Insurance
Understanding the types of final expense insurance available can help you make an informed decision. The most common include:
Whole Life Policies:
These policies provide permanent coverage that lasts a lifetime, accumulating cash value over time. Premiums remain fixed, offering stability.
Term Life Policies:
Less common for final expense needs, term life policies provide coverage for a specific period of time but do not accumulate cash value.
Guaranteed Issue Policies:
Designed for individuals with health issues, these policies do not require medical exams but typically come with higher premiums and a waiting period before full benefits apply.
Best Companies for Final Expense Life Insurance
When exploring final expense insurance, it can be helpful to know which companies are leading the market. Some well-
known providers include:
Mutual of Omaha:
Known for their affordable premiums and flexible policies.
Aetna:
Offers plans with no medical exam and competitive rates.
Colonial Penn:
Popular for guaranteed acceptance policies, albeit with a waiting period.
Globe Life:
Provides customizable coverage amounts and a simple application process.
Foresters Financial:
Offers unique member benefits, such as grief counseling services, along with their policies.
American-Amicable:
Provides guaranteed benefits and a cash value accumulation feature. Their policies cater to seniors with flexible options and riders.
These companies stand out for their financial strength, customer satisfaction, and benefit structures. For those seeking the best coverage, working with an experienced agent is also recommended.
Each of these companies has its strengths, so comparing quotes and policy details is essential to finding the right fit for your needs.
Factors That Could Affect Your Premiums
Premiums for final expense insurance are influenced by multiple factors:
Age:
Older applicants generally pay higher premiums. For example, a 70-year-old male could pay approximately $70 to $120 per month for a $10,000 policy.
Gender:
Women often have slightly lower premiums due to longer average life expectancies.
Health History:
Applicants with better health may qualify for lower rates, though guaranteed issue policies provide options for those with medical conditions.
Coverage Amount:
Higher coverage amounts result in higher premiums, so it’s essential to choose a policy that balances cost with your needs.
Alternatives to Final Expense Insurance
While final expense insurance is an excellent choice for many, other options may be worth considering:
Savings Accounts:
Setting aside funds specifically for funeral costs can eliminate the need for insurance, though it requires discipline and consistent contributions.
Trust Funds:
Establishing a trust allows you to earmark funds for specific purposes, such as funeral expenses.
Pre-Need Funeral Arrangements:
Arranging and paying for funeral services in advance ensures all final expenses will be handled and relieves families of decision-making during emotional times.
While these alternatives can be viable, they often require more planning and may not offer the same quick payouts as insurance.
Making the Right Choice When Applying for Senior Life Insurance
Final expense insurance can provide invaluable peace of mind for seniors and their families. By understanding your options and comparing quotes, you can find a policy that suits your needs and budget.
Explore your options and get personalized final expense insurance quotes for free, or contact an agent who can guide you through the process. Don’t wait to secure this crucial protection for yourself and your loved ones.
Funeral Life Insurance – How Much Does a Funeral Cost?
The cost of a funeral in the United States can vary significantly depending on the state and city you reside in. On average, a funeral with burial ranges from $7,500 to $13,500.
This typically includes services such as viewing of the deceased, burial expenses, transportation to the cemetery, and embalming.
If you opt for cremation services, you can expect a lower cost, generally ranging from $3,800 to $7,500.
Senior Life Insurance: Taking the Next Step
Get a No Obligation Quote:
Use our quote engine on the right to compare rates and policies from the top final expense life insurance companies tailored to seniors such as yourself.
Contact Us:
Speak with one of our friendly and experienced agents at (708-334-6226) for one-on-one guidance at no cost or obligation.
Share This Information with Your Loved Ones:
Please share this article with anyone who might benefit from learning about final expense insurance.
Exploring Your Policy Options:
Start exploring different plans and see which best fits your needs.
Preparing for the inevitable doesn’t have to be daunting. With the right policies, you can help your loved ones avoid financial stress when they need support the most.
Our Final Thoughts – Senior Life Insurance
Senior life insurance is a valuable tool for people who want to leave a legacy of financial security and peace of mind for
your loved ones. With the right policy, you can ensure your family isn’t left to face the high costs of funeral services and other end-of-life expenses alone.
By understanding how final expense insurance works, comparing policies, and choosing a top rated company, you can rest assured that your final wishes will be honored without placing a financial strain on your family.
Explore your options and secure a policy that fits your specific needs and budget. Feel free to contact us at 708-334-6226 seven days a week to get your questions answered at no cost or obligation.
All the Best,
Jack Venturi
