Final expense is a small life insurance policy to pay for a funeral and last bills. It is often whole life with a small face amount.
Burial insurance or final expense? Burial insurance and final expense insurance are two names for the same kind of policy. Washington's insurance office says final expense insurance is also known as burial policies or senior life insurance. These are small policies that cover or prepay funeral costs.
Who it fits
People on a budget with little savings who want their family to have funeral money fast.
- Who buys it
- Ages 50 to 85
- Medical exam
- Usually noDepends on age, amount and company
- Coverage amounts
- Small face amounts. In New York, senior life plans with no medical exam are capped at $25,000. Nevada says funeral and burial costs can top $10,000.
- Ages
- New York senior life plans are sold at ages 50 to 75. Other limits vary by state and company.
What to know before you buy
Funeral coverage is meant to get money to family quickly, before an estate is settled.
These policies have small face amounts, mostly for burial costs.
They often cost more for each $1,000 of coverage than bigger policies.
Some policies for older buyers pay back only premiums, or a small benefit, if you die in the first 2 or 3 years.
If a funeral home sells it without a price guarantee, name your own beneficiary, not the funeral home.
Make sure what you pay in will not soon add up to more than the benefit.
Common questions
What does final expense cover?
The money goes to your beneficiary. It is often used for the plot, casket or urn, marker, cremation, and other funeral costs.
Is there a waiting period?
Some plans with no exam pay only premiums back, or a small benefit, in the first 2 or 3 years. Ask before you buy.
Is it more expensive than other life insurance?
Per $1,000 of coverage, it often is. You are paying for a small, easy to get policy.
