No one likes to think about end-of-life expenses, but planning ahead can spare your loved ones from financial stress during an already difficult time. Final expense insurance—also called burial insurance or funeral insurance—is designed specifically to cover these costs.
What Is Final Expense Insurance?
Final expense insurance is a type of whole life insurance with smaller coverage amounts, typically ranging from $5,000 to $50,000. It is designed to cover:
How Final Expense Insurance Works
Final expense policies are permanent life insurance, meaning they do not expire as long as you pay your premiums. Key features include:
Guaranteed Acceptance Options: Many policies accept applicants regardless of health conditions, though premiums may be higher.
Fixed Premiums: Your monthly payment stays the same for life—it will never increase.
Cash Value Growth: Like other whole life policies, final expense insurance builds cash value over time that you can borrow against if needed.
Quick Payout: Benefits are typically paid within days, helping families cover immediate expenses.
Types of Final Expense Policies
Level Benefit Policies: Full death benefit is available immediately. Requires some health questions but offers the best value for those who qualify.
Graded Benefit Policies: For those with moderate health issues. Full benefit kicks in after 2-3 years; partial benefits available before then.
Guaranteed Issue Policies: No health questions asked—acceptance is guaranteed. However, there is usually a 2-3 year waiting period before full benefits apply, and premiums are higher.
Who Should Consider Final Expense Insurance?
Final expense insurance is particularly valuable for:
How Much Coverage Do You Need?
Consider these typical costs when determining your coverage amount:
Most financial experts recommend $10,000-$25,000 in final expense coverage to adequately protect your family.
Final Expense vs. Traditional Life Insurance
Choose Final Expense If:
Choose Traditional Life Insurance If:
Tips for Buying Final Expense Insurance
The Gift of Planning Ahead
Purchasing final expense insurance is not about dwelling on mortality—it is about giving your family one less thing to worry about during a difficult time. It is a final act of love and responsibility.
At UPointLife, we understand these decisions are deeply personal. We are here to provide information and guidance—never pressure. When you are ready to explore your options, we can help.
