The Basics
A final expense policy is whole life insurance, typically $5K-$25K. The beneficiary receives cash they can use however they want - including funeral costs, but not limited to them.
What People Forget
Funerals aren't the only end-of-life expense. Common uses of the death benefit:
- Funeral and burial (~$8K-$12K average)
- Remaining medical bills
- Outstanding utility / housing costs
- Travel for family members
- A small inheritance
The Graded-Benefit Question
Most final expense policies sold to older applicants have a graded benefit: full benefit only after year 2 or 3, with return-of-premium-plus-interest if death occurs earlier from non-accidental causes. Read closely.
What We Recommend
Be honest about your health when applying. Some final expense carriers use simplified underwriting with no graded period if you qualify; others apply graded benefits universally.