Final Expense Insurance Cost: What You Need to Know

Final expense insurance is an affordable way to ensure your loved ones are not burdened with the high costs of end-of-life expenses. Whether it’s funeral costs, medical bills, or other outstanding debts, this type of insurance provides a small but sufficient payout to cover these expenses.

If you’re considering purchasing final expense insurance, understanding the costs involved is crucial. In this article, we’ll break down the factors that influence the price of final expense insurance, provide cost estimates, and help you determine how much coverage you need.

1. What is Final Expense Insurance?

Final expense insurance, also known as burial insurance or funeral insurance, is a type of whole life insurance designed to cover end-of-life costs. These policies typically have coverage amounts between $5,000 and $50,000 and are easier to qualify for than traditional life insurance.

Unlike term life insurance, final expense policies last your entire lifetime, ensuring that your loved ones receive a payout when you pass away.

2. How Much Does Final Expense Insurance Cost?

The cost of final expense insurance depends on several factors, including age, health, gender, coverage amount, and tobacco use. Below are estimated monthly premium costs based on a $10,000 policy:

Estimated Monthly Premiums for a $10,000 Final Expense Policy

These are estimated costs and may vary based on the insurance provider and underwriting process.

3. Factors That Affect the Cost of Final Expense Insurance

Several factors determine how much you’ll pay for final expense insurance:

1. Age

• The older you are, the higher your premium will be.

• Premiums increase because insurers take on more risk as you age.

2. Health Condition

• Many final expense policies do not require a medical exam, but your health status still plays a role in the cost.

• If you opt for a simplified issue policy (which asks a few health questions), you may get lower rates.

• Guaranteed issue policies (no health questions) have higher premiums and a waiting period.

3. Gender

• Women tend to pay lower premiums than men because they have longer life expectancies.

4. Tobacco Use

• Smokers pay significantly more for final expense insurance because of the higher health risks associated with tobacco use.

5. Coverage Amount

• The more coverage you purchase, the higher your premium will be.

• Most policies range from $5,000 to $50,000, so selecting a lower amount can help you save money.

6. Type of Policy

• Simplified Issue Final Expense Insurance (health questions, no exam) is more affordable.

• Guaranteed Issue Final Expense Insurance (no health questions, no exam) costs more due to the higher risk for the insurer.

4. How to Choose the Right Coverage Amount

To determine how much final expense coverage you need, consider the following costs:

1. Funeral & Burial Costs

• Traditional funeral with burial: $7,000 – $12,000

• Cremation: $4,000 – $7,000

2. Outstanding Medical Bills

• Unpaid hospital expenses, hospice care, or long-term care.

3. Debt & Other Expenses

• Credit card debt, personal loans, or other outstanding bills.

• Family support if your loved ones depend on you financially.

Example Calculation:

If you want to cover a $10,000 funeral and $5,000 in medical bills, a $15,000 final expense policy would be a good choice.

5. Ways to Lower Your Final Expense Insurance Costs

Even though final expense insurance is generally affordable, here are some tips to reduce costs:

✔ Buy Sooner – The younger you are, the lower your premiums will be.
✔ Choose Simplified Issue Policies – If you are in decent health, these policies are cheaper than guaranteed issue.
✔ Compare Providers – Different companies offer different rates, so shop around for the best deal.
✔ Opt for a Lower Coverage Amount – If you only need to cover funeral costs, a $10,000 – $15,000 policy may be sufficient.
✔ Maintain a Healthy Lifestyle – Avoid smoking, eat well, and exercise to qualify for better rates.

6. Is Final Expense Insurance Worth the Cost?

Final expense insurance is worth considering if you:
✅ Don’t want your family to struggle with funeral costs.
✅ Have health conditions that make other life insurance policies too expensive.
✅ Need a small, permanent policy that lasts a lifetime.
✅ Prefer a policy with fixed premiums and no expiration.

However, if you already have sufficient savings or a traditional life insurance policy, you may not need a separate final expense policy.

7. How to Get a Final Expense Insurance Quote

Getting a final expense insurance quote is easy and can often be done online or over the phone. Here’s what you need to do:

1️⃣ Determine How Much Coverage You Need – Decide if you need $10,000, $20,000, or more.
2️⃣ Compare Quotes from Multiple Insurers – Check for competitive rates.
3️⃣ Choose a Simplified or Guaranteed Issue Policy – Based on your health condition.
4️⃣ Apply & Get Approved – Many policies don’t require a medical exam.
5️⃣ Start Paying Your Premiums – Once approved, your coverage begins.

Final Thoughts

Final expense insurance is an affordable way to plan for end-of-life expenses and provide financial peace of mind for your loved ones. While costs vary based on age, health, and coverage amount, it remains a budget-friendly alternative to traditional life insurance.

If you’re considering purchasing a policy, compare quotes from different providers and choose a plan that meets your needs. Taking action today can help ensure that your family is financially secure when they need it most.

👉 Get a final expense insurance quote today to find a policy that fits your budget!