What Is Final Expense Insurance?
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What is final expense life insurance?
Final expense insurance is a small whole life insurance policy that’s meant to cover your funeral and burial costs, as well as other end-of-life expenses like medical and legal bills.
Also known as burial insurance, these policies are typically open to people 50 and older and capped at low coverage amounts. They usually start at $1,000 and max out at $25,000, though some insurers sell policies worth more. While these policies are marketed as a way for your life insurance beneficiaries to cover your end-of-life costs, they can spend the money however they wish.
There are two main types of policies to choose from, and the application process is slightly different:
Simplified issue policies skip the life insurance medical exam, but you’ll have to answer questions about your health and lifestyle.
Guaranteed issue life insurance offers coverage without an exam or questionnaire.
Since final expense policies are geared toward seniors and insurers don’t have a complete picture of the applicants they’re covering, the premiums tend to be expensive.
» MORE: Is burial insurance worth it?