What is Final Expense Insurance?

Final Expense Insurance, sometimes called burial insurance (which is technically a sub-category of final expense insurance), provides coverage for end of life expenses such as a funeral, cemetery plot, headstone, caskets, loans, credit card debt and estate expenses such as debts. While many people save for final expenses, they can easily exceed consumers' original cost estimates, and loved ones may not have immediate access to funds needed to cover the expenses. Final expense insurance is a useful tool to help consumers cover this gap and pay off these debts, ensuring that everything will be taken care of if you pass.

Final expense needs are usually covered with a whole life insurance policy. The benefits of whole life insurance include a guaranteed level premium that can never be increased, guaranteed cash value and a guaranteed death benefit that can never be decreased. The cost of final expense whole life insurance is very affordable, even if you have some health problems. The application process is quick and easy. You can apply for final expense insurance coverage without having to undergo any medical examination – you simply answer the questions on the application.

Why is Final Expense Insurance so Important?

A standard life insurance policy can take weeks, months, even years to pay out sometimes, but a final expense policy will likely pay out within 48 hours. This is vital when making burial and funeral arrangements for a loved one.

The traditional funeral cost in the United States is approximately $10,000 and that’s just for the essential items. There could be additional expenses such as lawyer fees, an obituary for the newspaper, flowers, unpaid medical bills, and unpaid debts. It is important that the family isn’t left behind to cover all these costs out of pocket.

A surviving spouse will receive a death benefit of $255 from Social Security and if you are a spouse of a veteran, the Veterans Administration will pay around $450-$800.