Final expense insurance, explained

Final expense insurance, also called burial insurance, is a type of whole life insurance with a smaller death benefit, often between $5,000 and $50,000. It is designed to pay for a funeral, burial or cremation, medical bills and other final costs so family members don't have to.

Like other whole life policies, coverage lasts for life as long as premiums are paid, and the premium usually stays the same.

It is most common among adults aged 50 to 85 who want to leave money for final costs but don't need a large policy. Many plans ask only a few health questions and don't require a medical exam.

• Simplified issue: a short health questionnaire, no exam. Coverage usually starts right away if you qualify.
• Guaranteed issue: no health questions, so acceptance is guaranteed. These policies cost more and usually have a waiting period of two to three years before the full benefit is paid for natural causes.

If you are in good health, a traditional term or whole life policy may offer more coverage for the same premium. Compare both before deciding.

• Whether there is a waiting (graded) period, and how long it is
• Whether the premium is fixed for life
• The insurer's financial strength rating
• Whether a beneficiary can use the money for any purpose, not only funeral costs

If you'd like to talk to licensed agents about your options, you can request information with one form.

Explore life and final expense options