Final expense
Cover the bills your family shouldn’t have to.
A final-expense policy is a small permanent life-insurance contract, typically $5,000 to $50,000, designed to pay for funeral, burial, medical, and probate costs without your family fronting the cash.
Book a CallWhat it is
- Whole-life policy with a modest face amount, fixed premiums, and a guaranteed death benefit.
- Issued via simplified or guaranteed underwriting, usually no medical exam, just health questions or none at all.
- Pays tax-free to a named beneficiary under IRC §101(a), typically within days of a claim.
- Stays in force as long as the premium is paid; no term to expire and no premium increases.
Who it fits
- Adults age 50–85 who want to leave the money for their final expenses without the family writing checks from current cash flow.
- Households where a parent's existing coverage has expired or never existed, and a simple, fixed-premium policy is all that's needed.
- People with health conditions that make traditional life insurance harder to qualify for, guaranteed-issue final-expense is one of the few options.
- Anyone who wants funeral and burial costs prearranged separately from estate proceedings.
Common questions
What buyers usually want to know.
What is final expense insurance?
Final expense insurance is a small permanent life-insurance policy, typically $5,000 to $50,000, designed to pay for end-of-life costs: funeral, burial, outstanding medical bills, and probate expenses. It is a whole-life policy at heart, with fixed premiums and a guaranteed death benefit.
How much does final expense insurance cost?
Premiums depend on age, gender, health, and face amount. For a healthy 65-year-old, a $15,000 policy might run roughly $40–$80 per month; for an 80-year-old, the same coverage might be $150–$250 per month. Guaranteed-issue policies (no health questions) cost more than simplified-issue (with health questions).
What is the difference between simplified-issue and guaranteed-issue?
Simplified-issue final expense asks a short list of health questions. If you can answer no to the disqualifying ones, you're approved without a medical exam. Guaranteed-issue asks no health questions at all, anyone within the age band is accepted, but it has a graded death benefit (typically full benefit only after 2–3 years; before that, the carrier returns premiums plus interest).
Can I get final expense insurance with health conditions?
Yes. Final expense is often the most accessible permanent coverage for people who don't qualify for traditional life insurance. Simplified-issue plans tolerate many common health conditions; guaranteed-issue plans accept anyone within the age band (typically 50–85). The carrier and product choice depend on the specific condition.
Is the death benefit on a final expense policy taxable?
Under IRC §101(a), the death benefit paid to a named beneficiary is generally not subject to federal income tax. Final expense policies typically pay out within days of a clean claim, which is the practical advantage: the family has cash for funeral arrangements without waiting on probate.
Should I buy final expense or term life instead?
If you're under 60 and healthy, level term is usually a more efficient way to get a meaningful death benefit. Final expense is the right product when (1) you're older than the practical term ages, (2) you need permanent coverage, (3) you only need a modest face amount, or (4) health makes traditional underwriting difficult. We'll tell you straight on a strategy call which one actually fits.
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