Let's talk about something nobody really wants to think about but everyone should plan for: what happens when you're gone. Final expense insurance exists to solve one specific problem—making sure your loved ones don't have to scramble for money to pay for your funeral and final arrangements when they're already grieving.
If you're between 50 and 85, you might have noticed that traditional life insurance either rejects you outright or charges premiums that make your eyes water. That's where final expense insurance comes in. It's designed specifically for seniors, with simplified approval and manageable monthly payments. And here's the thing that surprises most people: you can usually get approved even if you have health conditions that would disqualify you from other types of coverage.
What Final Expense Insurance Actually Is
Final expense insurance (also called burial insurance or funeral insurance—the terms are interchangeable) is a type of whole life insurance with smaller coverage amounts, typically between $5,000 and $30,000. Most people buy around $10,000 to $20,000 in coverage, which aligns pretty well with what funerals actually cost these days.
According to the National Funeral Directors Association, the median cost of a funeral with viewing and burial is now between $8,300 and $9,100—and that doesn't even include cemetery costs. Add in a burial plot, headstone, and other expenses, and families can easily face bills of $15,000 to $20,000. Final expense insurance ensures that money is there when it's needed, paid directly to your beneficiaries usually within days of filing a claim.
Unlike term life insurance that expires after a set number of years, final expense policies last your entire life as long as you pay the premiums. And those premiums? They're locked in. The rate you start with at age 65 will be the same rate when you're 85, even if your health deteriorates.
How Simplified Underwriting Makes This Accessible
Here's what makes final expense insurance different from traditional life insurance: the application process is dramatically simpler. There are two main types you'll encounter.
Simplified issue policies require no medical exam but do ask a few health questions—usually about five to ten yes-or-no questions about serious conditions like cancer, heart disease, or recent hospitalizations. If you're in relatively good health, you can qualify for immediate full coverage at a lower premium. Answer the questions honestly, and if you qualify, your full death benefit is available from day one.
Guaranteed issue policies are exactly what they sound like: guaranteed acceptance for anyone within the eligible age range (typically 50-85) with no health questions at all. These policies do come with a catch, though—a graded death benefit period.
Understanding Graded Benefits (And Why They Exist)
If you choose a guaranteed issue policy, there's usually a two to three year waiting period called the graded benefit period. During this time, if you pass away from natural causes (illness, old age, etc.), your beneficiaries won't receive the full death benefit. Instead, they'll get back all the premiums you paid plus interest—typically around 10%.
Here's an example: if you die from a heart attack in year one of a $10,000 policy, your family might receive 30% of the death benefit plus premiums. In year two, that might increase to 70%. After the waiting period ends (year three and beyond), they receive the full $10,000. However, accidental death is covered immediately at 100% from day one, no waiting period.
Why do insurance companies do this? Because they're taking on significant risk by accepting everyone regardless of health status. The graded benefit protects them from people who know they're seriously ill applying only to leave money to their families. It's a trade-off that makes coverage accessible when it otherwise wouldn't be.
What You'll Actually Pay
Premiums vary based on your age, gender, health status, coverage amount, and the insurance company you choose. For $10,000 in coverage, expect to pay between $30 and $120 per month, with most seniors paying around $50-$75 monthly. The national average sits at approximately $74 per month for seniors over 60.
Women generally pay less than men at the same age because of longer average life expectancy. A 75-year-old woman might pay around $88 per month for $10,000 in coverage, while a 75-year-old man would pay closer to $113 monthly for the same policy. If you're over 80, expect higher premiums—anywhere from $51 to $268 monthly depending on your specific age and health. By age 85-90, premiums can reach $300 or more per month.
If you have significant health conditions, you'll pay toward the higher end of these ranges. But remember: your premium is locked for life. A $90 monthly premium may feel steep now, but it's still $90 when you're ten years older, even though your age and health might have changed dramatically.
How to Get Started
Shopping for final expense insurance has gotten much easier. Over 40% of policies are now purchased online, and 70% of new policies are no-exam. Start by determining how much coverage you actually need. Add up expected funeral costs, outstanding medical bills, credit card debt, and any other expenses you don't want to leave behind. Most people find $10,000 to $15,000 hits the sweet spot.
Compare quotes from at least three companies because premiums can vary significantly—sometimes by $50 per month or more for the same coverage. Look at both simplified issue and guaranteed issue options. If you're in decent health, simplified issue will almost always offer better value with immediate full coverage and lower premiums.
Ask about the graded benefit period if you're considering guaranteed issue. Some companies have two-year waiting periods; others have three. Understand exactly what your beneficiaries would receive if something happened in year one versus year two. And finally, review the policy annually with your beneficiaries so they know it exists and how to file a claim. The best insurance in the world doesn't help if your family doesn't know about it.
Final expense insurance isn't glamorous, but it's one of the most thoughtful things you can do for the people you love. It transforms a potential financial crisis into a non-issue during an already difficult time. Whether you're 55 or 85, healthy or managing chronic conditions, there's likely a policy available that fits your needs and budget. The question isn't whether you can afford final expense insurance—it's whether your family can afford for you not to have it.
