Pros and Cons of Final Expense Insurance: Is It the Right Choice for You?
Written by Daniel Ray, Life Insurance Expert |
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Fact Checked by
Lisamarie Monaco |
Editorial Disclosure
Are you considering final expense insurance but wondering if it’s a smart financial decision? Many seniors seek affordable, no-medical-exam insurance to cover funeral costs and outstanding bills. But is final expense insurance the best option, or are there better alternatives?
This guide breaks down the pros and cons of final expense insurance, its costs, and how it compares to other policies to help you make an informed decision.
What Is Final Expense Insurance?
Final expense insurance is a whole life insurance policy designed to cover end-of-life expenses, such as funeral costs, medical bills, and small debts.
Key Features of Final Expense Insurance:
✅ Coverage amounts range from $2,000 to $50,000.
✅ No medical exam required—approval based on basic health questions.
✅ Fixed premiums—monthly payments never increase.
✅ Lifetime coverage—policy never expires as long as premiums are paid.
✅ Cash value accumulation—a portion of your premiums builds savings that can be borrowed against.
Final expense insurance is commonly used for funeral and burial costs, which can range from $7,000 to $12,000.
Is burial insurance worth it?
See our inflation tool below and thread the needle on your coverage.
*Ballpark Quote
Pros of Final Expense Insurance
Is final expense insurance a good deal?
✅ Affordable Monthly Premiums – Costs are typically lower than standard whole life insurance.
✅ Guaranteed Payout – Your family receives the full benefit, which can be used for funeral costs, debts, or other expenses.
✅ No Medical Exam Required – Unlike traditional life insurance, seniors can qualify even with health conditions.
✅ Fixed Premiums – Monthly payments remain the same for life.
✅ Cash Value Growth – A portion of your premiums accumulates cash value over time.
✅ Quick Payouts – Claims are typically paid within days, helping families cover funeral expenses quickly.
Cons of Final Expense Insurance
What are the disadvantages of final expense insurance?
❌ Higher Cost Per Dollar of Coverage – Final expense insurance costs more per $1,000 than term or whole life insurance.
❌ Limited Death Benefits – Maximum coverage is usually $50,000, which may not be enough for larger expenses.
❌ Possible Waiting Period – Some policies have a 2-year waiting period before full benefits are paid for natural causes.
❌ May Not Be Necessary for Some – If you have savings, prepaid funeral plans, or existing life insurance, you might not need it.
*Ballpark Quote
How Much Does Final Expense Insurance Cost?
Final expense insurance is more affordable than traditional life insurance, but costs depend on age, gender, and health.
What is the average premium for final expense insurance?
Sample Monthly Rates for a $5,000, $10,000, and $15,000 Policy (Non-Smoker):
Male
Female
- Guaranteed issue plans (no health questions) cost 30-50% more.
- Smokers and those with pre-existing conditions pay higher premiums.
Try our interactive final expense insurance quote calculator where users can input their age and coverage amount for an estimate.
*Ballpark Quote
At What Age Should You Buy Final Expense Insurance?
- Most people purchase final expense insurance between ages 50 and 85.
- The younger you are, the lower your monthly premiums will be.
- If you have existing health conditions, getting coverage early can help lock in lower rates.
Does Final Expense Insurance Have a Waiting Period?
- Simplified Issue Policies – No waiting period if you qualify based on health questions.
- Guaranteed Issue Policies – 2-year waiting period before full benefits are paid for natural causes.
- Accidental Deaths – Policies pay full benefits immediately if death is caused by an accident.
Best Final Expense Insurance Companies
“Compare the Best Final Expense Insurance Plans Today!”
*Ballpark Quote
Final Expense Insurance vs. Traditional Life Insurance
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FAQ
Higher premiums per dollar of coverage, limited benefits, and possible waiting periods.
Yes, for seniors needing small coverage amounts without a medical exam.
Around $30–$75 per month, depending on age and health.
The best time is between ages 50-70 for lower premiums.
Some policies have no waiting period, while others have a 2-year waiting period for non-accidental deaths.
Conclusion
Final expense insurance is a valuable option for seniors who want affordable coverage for funeral costs and end-of-life expenses. While it has higher costs per dollar of coverage than traditional life insurance, it offers guaranteed acceptance and fixed premiums.
However, it’s important to compare final expense plans to traditional life insurance options to find the best coverage for your needs.
Are you ready to secure a final expense policy that provides peace of mind for your family?
“Get Your Free Final Expense Insurance Quote Today!”
*Ballpark Quote
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