Here's something nobody likes to think about: when you die, someone has to pay for your funeral. And if you think your family will just figure it out, consider this—the average funeral costs nearly $10,000 in 2024. That's a huge burden to drop on your loved ones when they're already grieving. Final expense insurance exists to solve exactly this problem. It's a small life insurance policy designed to cover funeral costs, burial expenses, and other end-of-life bills so your family doesn't have to scramble for cash during the worst week of their lives.
If you're in your 50s, 60s, or older, or if you have health issues that make traditional life insurance impossible to get, final expense insurance might be your best option. Let's walk through everything you need to know.
What Is Final Expense Insurance?
Final expense insurance—also called burial insurance or funeral insurance—is a type of whole life insurance with a small death benefit, usually between $5,000 and $25,000. Unlike term life insurance that expires after 10, 20, or 30 years, final expense coverage lasts your entire life as long as you pay the premiums. And here's the best part: you don't need a medical exam to qualify. Just answer a few basic health questions, and most people get approved within days.
The policy works exactly like regular life insurance. You pay a monthly premium, and when you die, your beneficiary receives a lump sum payment tax-free. They can use that money for funeral expenses, cremation, burial plots, headstones, medical bills, or anything else they need. There are no restrictions on how the money gets spent—it's theirs to use as they see fit.
Think of it as a financial safety net specifically sized for end-of-life expenses. Most people don't need a million-dollar policy at age 70—they just need enough to ensure their kids or spouse aren't stuck with a $10,000 funeral bill on top of everything else they're dealing with.
How Much Does Final Expense Insurance Cost?
Your monthly premium depends on three main factors: your age, your gender, and how much coverage you buy. As a general rule, expect to pay between $30 and $150 per month for a typical policy. Women pay less than men (about 30% less on average) because statistically, women live longer. And obviously, the older you are when you apply, the higher your premium will be.
Here's what real numbers look like based on 2024-2025 data: a 50-year-old woman can get $10,000 of coverage for around $30 per month, while a 50-year-old man pays about $40 per month for the same policy. By age 65, a woman pays roughly $111 per month for $25,000 in coverage, and a man pays $145 per month. At age 75, expect to pay around $113 per month for a $10,000 policy if you're male.
Yes, that's more expensive per dollar of coverage than traditional life insurance. But here's the thing—if you're 70 years old with diabetes and high blood pressure, you probably can't get traditional life insurance at any price. Final expense insurance might be your only option. And once you lock in your rate, it never goes up. You'll pay the same premium at 85 that you paid at 65, which is huge when you're living on a fixed income.
How Much Coverage Do You Actually Need?
Let's talk about funeral costs, because that's what drives how much coverage makes sense. According to the National Funeral Directors Association, the average funeral costs $7,848 without a vault and $9,995 with one. Cremation is cheaper at around $6,280, but you still need to factor in memorial services, urns, death certificates, and other administrative costs that add up fast.
Most people buy between $10,000 and $20,000 in coverage. A $10,000 policy covers a basic funeral with a little cushion for unexpected costs. A $15,000 to $20,000 policy gives your family breathing room to pay for a nicer service or handle other expenses like outstanding medical bills, credit card debt, or even just groceries and rent for a month while they sort everything out.
Think about what you want for your own funeral, then add 20% for inflation and surprise costs. If you want a traditional burial with a viewing and casket, you're probably looking at $10,000 minimum. If you want cremation and a simple memorial, $7,000 to $8,000 might be enough. Remember, funeral costs have increased 11% in just the past five years, so building in some extra cushion is smart.
Who Should Consider Final Expense Insurance?
This type of insurance makes the most sense for seniors and people with health issues who can't qualify for traditional life insurance. If you're over 60, if you have pre-existing conditions like heart disease or cancer, or if you've been denied coverage elsewhere, final expense insurance is designed for you. The application process is simple—no medical exams, no blood tests, no doctor visits. Just answer a handful of health questions honestly, and you'll likely get approved.
It's also a good fit if you don't have much savings or if you're worried your kids will have to go into debt to pay for your funeral. Even if you have some money in the bank, do you really want your family draining your savings account in the first week after you're gone? A final expense policy keeps those funds separate and designated specifically for end-of-life costs.
On the flip side, if you're young and healthy, traditional term life insurance is almost always a better deal. You'll get more coverage for less money. Final expense insurance is specifically for people who are older or have health problems that make standard policies too expensive or impossible to obtain.
How to Get Started with Final Expense Insurance
Shopping for final expense insurance is straightforward, but you need to compare multiple quotes because prices vary wildly between companies. Start by deciding how much coverage you need—most experts recommend at least $10,000, but $15,000 to $20,000 gives you more flexibility. Then get quotes from at least three different insurers.
Look for policies with immediate full coverage. Some companies offer graded benefit policies where if you die in the first two years, your beneficiary only gets back your premiums plus interest instead of the full death benefit. Those policies are cheaper, but they're only worth it if you have serious health issues and can't get immediate coverage anywhere else.
When you apply, answer the health questions honestly. Lying on your application can void your policy, which means your family gets nothing when you die—exactly the outcome you're trying to avoid. Most applications ask about major health conditions from the past few years, current medications, and whether you've been hospitalized recently. Be truthful, and you'll get approved for the coverage level that matches your health profile.
Final expense insurance isn't the cheapest form of life insurance, but it serves a specific purpose: making sure your family doesn't face financial stress when you die. For seniors and people with health conditions, it's often the only realistic option. If you've been putting off life insurance because you think you're too old or too sick to qualify, final expense coverage is worth exploring. Your family will thank you for taking this burden off their shoulders.
