Final expense insurance is a small whole life policy ($5,000–$25,000) designed to cover end-of-life costs: funeral, burial, medical bills, final debts. Permanent — never expires. Most policies are simplified issue or guaranteed issue. Premiums are fixed for life. Average funeral cost: $7,000–$12,000 in 2026.
Key Points
- Coverage amounts: typically $5,000–$25,000
- Permanent coverage — never expires as long as premiums are paid
- Most policies: simplified issue (health questions) or guaranteed issue (no questions)
- Premiums are fixed for life — no rate increases
- Death benefit paid directly to beneficiary — can be used for anything
- Designed for seniors 50–85 who want to cover end-of-life costs
- Average funeral cost: $7,000–$12,000 (2026)