What is final expense life insurance?

Final expense, also called burial insurance, is a permanent policy that pays a fixed death benefit to a beneficiary. The benefit is small by design, just enough to cover a funeral, outstanding medical bills, or other final costs.

Because the coverage is small and the policy is whole life, premiums stay level and coverage never expires as long as you pay. Many policies build a small amount of cash value.

Final expense is most popular with seniors and people with health conditions who want to spare their family the cost of a funeral, which averages several thousand dollars. The simplified application often means approval in days rather than weeks.

Some policies use guaranteed issue, which asks no health questions at all, but they come with a graded benefit that pays less if you die in the first two years.

A standard term or whole life policy can provide much larger coverage for a similar or lower cost if you are young and healthy. Final expense is best when you need a modest amount for end-of-life costs and want easy approval.