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Is final expense insurance a good deal?

May 8, 2020 4 Minute Read

You’re always planning for the next phase in your life: college, career, buying a house, starting a family. But what about the last phase of life – and beyond? No one likes to think about their final days, but when they come, it’s important to make sure your family isn’t stuck with big financial burdens.

When it comes to ensuring financial peace of mind for your family, final expense life insurance is a way to cover funeral costs or other expenses for older adults who no longer need a traditional life insurance policy. Those bills can get pretty big, with the average funeral costing roughly $10,000. That can be a lot for a family to deal with, especially while grieving your loss, which is why final expense insurance is a good option for many families. If you’re wondering “What is final expense insurance?” or where to start, here’s what you need to know.

Why do I need final expense insurance?

Term or permanent life insurance is important in the prime of life to help replace your income or cover big expenses. As you get older, you may not need such a big policy, but you do need to plan for one big cost: your funeral. Final expense insurance, also called burial insurance or funeral insurance, is designed to do just that.

If you’re looking for insurance specifically to cover those costs, burial insurance could be a good fit for your family. Here are some factors to consider when it comes to final expense insurance:

  • It’s designed for adults 50-85 years of age
  • It’s a type of permanent life insurance, which means it will stay in effect through your whole lifetime
  • No medical exam is required, so it’s easy to qualify
  • It’s relatively affordable because of lower coverage amounts, which typically range anywhere from $5,000 to $40,000

Once you’re gone, your loved ones can use the payout to cover whatever they wish, including any funeral costs or medical debts that health insurance doesn’t cover. You can also assign a funeral home directly as your beneficiary of your funeral insurance policy if you choose.

Is final expense life insurance worth it?

If you’re older and looking for a smaller policy to just cover final costs, final expense insurance can be a simple, affordable solution.

When you’re deciding whether to take out a policy, consider whether you have enough set aside to cover necessary costs. It’s likely you won’t want these kinds of costs to fall to loved ones or on a credit card. If you do have this kind of spending ability, you may not need it. Also, if you’re younger or need a bigger policy, look into term life insurance instead: some carriers will qualify you up to the age of 70. For people who need a way to protect their family from end-of-life expenses, though, final expense life insurance is a cost-effective way to get peace of mind, rather than a term life insurance policy.

Planning for the future and beyond

It’s normal to be apprehensive about planning ahead for final expenses, but preparing now can help make sure your loved ones can take care of themselves both emotionally and financially. eFinancial is here to help answer your questions about getting covered with funeral insurance – and finding the right policy. Give one of our dedicated agents a call today to get started.


At eFinancial, our goal is to make life insurance simple, affordable, and understandable for everyday families. This content is intended for educational purposes only. Each post is carefully fact-checked, reviewed and updated regularly to ensure the information is as relevant as possible.