Final Expense

What Is Final Expense Insurance?

Final expense insurance is an insurance policy used to pay for funeral services and a burial when the named insured dies. Such a policy helps ease the financial burden placed on a family when a loved one dies.


Although the policy is called “final expense insurance,” it is no different than a traditional life insurance policy with a small monetary value.

Final expense insurance allows the named insured to feel safe knowing that funeral-related expenses are covered regardless of the statutes of their estate at the time of death.

The two types of final expense insurance are term life and whole life. Term life insurance covers the insured for a specific time period or until a set age, after which coverage expires. Whole life insurance covers the insured for the remainder of his life.

A final expense insurance policy can be identified by wording in the policy that specifies the proceeds are to be used for final expenses relating to the funeral and burial.

As final expense insurance is a traditional life insurance policy, the named beneficiary could use the proceeds for purposes other
than a funeral. As a result, make sure that the beneficiary can be trusted to use the policy to cover funeral expenses.