A Guide to Final Expense Life Insurance
Thinking about end-of-life planning may feel uncomfortable, but it is one of the most caring steps you can take for your family.
Final expense whole life insurance can help reduce the financial stress on your loved ones after your passing. With a plan in place, your family can focus on honoring your wishes instead of worrying about how to pay for final arrangements.
What Is Final Expense Life Insurance?
Final expense life insurance, often called burial insurance or funeral insurance, is a whole life policy designed to help your family cover the costs that come at the end of life. This may include:
- Funeral or memorial services
- Cremation or burial
- Medical bills or other final expenses
Coverage generally ranges from $5,000 to $50,000, though different insurance providers can offer different face amounts.
Final Expense vs. Traditional Whole Life Insurance
Final expense life insurance focuses on costs your family may face right after your passing. This product generally has a lower face amount than traditional whole life insurance, so final expense premiums are also generally lower. Final expense is typically easier to qualify for, too, often without a medical exam.
Traditional whole life insurance, on the other hand, is typically part of a long-term financial plan. It tends to have a larger death benefit and is generally meant to replace income or cover large expenses, such as a mortgage or college tuition. Traditional whole life insurance can be a reliable way to protect your family’s financial future while you aim to meet other financial goals.
Funeral Costs
End-of-life expenses can come as a surprise and may place an unexpected burden on families already coping with loss.
According to Funeralocity, the average cost of a traditional full-service burial is $8,593, while a full-service cremation averages $6,251.
Costs can include:
- Basic funeral home services
- Visitation or memorial services
- Casket or urn
- Burial plot or cremation fees
- Transportation
- Flowers or printed materials
Without a plan in place, families may need to make hard decisions during a difficult time. With final expense life insurance, families can grieve without the stress of wondering how they will pay for funeral services.
How Final Expense Life Insurance Works
Final expense life insurance is designed to help make planning easier for you and your family.
1. Choose your coverage amount
People on average choose between $5,000 and $50,000 of coverage.
2. Apply without a medical exam
Final expense policies are generally easy to apply for and quick to receive.
Many policies use simplified underwriting. Insurers rely on a medical questionnaire, which means:
- No invasive medical exam
- No needles
- No swabs
3. Pay a steady monthly premium
Premiums generally stay the same throughout the life of the policy, which can make budgeting easier.
4. Your loved ones receive the payout
When you pass away, those you designate as beneficiaries will receive the benefit directly.
Read More: What Is Final Expense Life Insurance and How Can It Help Your Loved Ones?
How Much Final Expense Coverage Do You Need?
The coverage amount you choose depends on the type of arrangements you prefer.
Common cost areas to consider:
- Funeral or memorial services
- Burial or cremation
- Transportation
- Ceremony details
- Small final expenses
A helpful way to estimate your coverage needs:
+ Burial plot or urn
+ Transportation or ceremony extras
+ Final small bills or expenses
= Your recommended coverage amount
Final Expense Life Insurance FAQs
Can it cover cremation costs?
Yes. Final expense life insurance can be used for cremation, burial, or any other final arrangements.
Is this the same as burial insurance?
Yes. These are different names for similar small whole life policies.
Is it the same as preneed life insurance?
No. While both are life insurance policies, preneed life insurance is assigned to a specific funeral provider and only covers your funeral expenses. Preneed insurance pays for your funeral in advance, guaranteeing services at today’s prices. However, plans may not be transferable and are limited to funeral and burial expenses.
What happens if I miss a payment?
Most policies include a grace period. If the policy lapses, you may need to reinstate it, depending on the terms. If you do not reinstate it, then your policy will end and your coverage will cease.
How fast does it pay out?
Final expense policies generally pay out quickly once the required documents are submitted.
Do I need a medical exam?
Usually no. Most people only answer a few health questions.
Is it only for senior citizens?
No. While it is most common for older adults, some younger people choose to apply for coverage as they plan for the future.
Is Final Expense Life Insurance a Good Fit for You?
Final expense life insurance may be right for you if:
- You want to protect your family from unexpected end-of-life costs.
- You have limited savings set aside for final arrangements.
- You prefer predictable monthly premiums.
- You want coverage that does not require a medical exam.
- You want to reduce financial stress for your loved ones.
Plan for the Future Now
Planning ahead gives your family comfort and can help prevent financial stress.
WoodmenLife offers up to $50,000 of final expense whole life insurance coverage, depending on eligibility. If you are unsure how much coverage you may need, our online tool can guide you. It walks you through average inputs for burial or cremation and helps estimate what your final arrangements might cost. Learn more at WoodmenLife.org/Final-Expense.
Written by: Diana Henry, Senior Digital Copywriter
This blog is intended for general educational purposes only and may reference products, features, or options not currently offered by WoodmenLife. Availability of products and features can vary by company and state.
Final Expense Level Whole Life: Forms ICC25 9017 5-25, 9017 5-25 (XX). Final Expense Graded Whole Life: Forms ICC25 9018 5-25, 9018 5-25 (XX).
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