What it is designed to cover
The death benefit is paid in cash to the beneficiary you name, who can use it for any purpose. Families most often use it for the costs that arrive right after a death.
- Funeral, burial or cremation costs
- Unpaid medical bills
- Credit card balances and other small debts
- Travel and household costs for surviving family
How applications work
Most final expense policies do not require a medical exam. Simplified issue policies ask health questions and can decline an applicant. Guaranteed issue policies ask no health questions, cost more for the same benefit, and usually limit the payout during the first two or three years.
What to check in the policy
Before you apply, ask the agent to confirm the following in writing or in the policy documents.
- Whether the full death benefit is payable from the first day
- Whether the premium is fixed for life
- The age range the insurer accepts
- Any exclusions or waiting periods
Common questions
Is final expense insurance the same as a prepaid funeral plan?
No. A prepaid plan is a contract with a funeral home. Final expense insurance pays cash to your beneficiary, who decides how to use it.
How much final expense coverage do people buy?
Policies commonly range from a few thousand dollars to around $50,000, depending on the insurer. An agent can help you match the amount to expected costs.
This page is general information, not insurance, legal or tax advice. Policy terms, eligibility and pricing vary by insurer and state. A licensed insurance agent can explain the specific products they offer.