The short answer
This guide answers the most common questions about what does final expense insurance cover.
Final expense insurance is often called burial insurance, but it can pay for much more than a burial.
Here is what the benefit typically covers and how families use it.
Part of our complete guide: Final Expense Insurance: The Complete Guide.
Quick answer
The benefit goes to your beneficiary, who can use it for anything. Common uses: the service, burial or cremation, medical bills, debts. Local funeral home prices help you pick an amount.
MarketView Agency is an independent insurance agency (National Producer Number 18345705).
On this page
- What does final expense cover?
- Write down your wishes, too
- Will your family owe your bills?
- Final expense coverage uses: how much final expense coverage do you need?
- Which kind of final expense policy fits?
- Why work with an independent agency
- What if you miss a payment?
- Is final expense coverage right for you?
- Frequently asked questions
What does final expense cover?
The benefit is paid to your beneficiary, not to a funeral home, so it can be used for anything. Families commonly use it for:
- Funeral home services, a viewing or a memorial service
- Burial or cremation, a cemetery plot and a headstone or marker
- Flowers, an obituary notice and travel for family
- Final medical bills not covered by other insurance
- Credit card balances or other small debts
- Everyday bills while the family gets settled
Costs vary a lot by region and by the choices a family makes. A local funeral home can give you a price list to help you pick an amount.
We cover this in detail in Best Final Expense Insurance Companies to Work for.
Write down your wishes, too
A policy pays for final costs, but your family also needs to know what you want. A short written plan makes their choices easier.
- Burial or cremation, and any place that matters to you.
- The kind of service you'd like, if any.
- Where your policy and important papers are kept.
- Who should be called first.
Share the plan with your beneficiary and keep a copy with your policy.
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Will your family owe your bills?
In general, remaining debts are paid from a person's estate, not by family members personally, unless they co-signed, were joint account holders, or live in a state with special rules for spouses. A final expense policy pays the beneficiary directly, outside the estate, so the money can cover costs quickly.
Rules vary by state and situation. An estate attorney can explain how they apply to your family.
Final expense coverage uses: how much final expense coverage do you need?
Start with the kind of service you want and the local cost of it. Add any final medical bills or debts you would not want to leave behind. Then subtract savings or other life insurance set aside for this purpose.
Many people choose an amount that covers the service and a little extra for bills. A local funeral home's price list is a good reference.
Which kind of final expense policy fits?
Final expense policies come in a few types. The right one depends mostly on your health.
| Feature | Simplified issue (level benefit) | Graded benefit | Guaranteed acceptance options |
|---|---|---|---|
| Health questions | A short list | A short list | None |
| Medical exam | Usually none | Usually none | None |
| Full benefit from day one | Yes | After a waiting period | After a waiting period, usually two years |
| Price | Lowest of the three | Higher | Highest |
With waiting periods, if the insured passes away from natural causes early in the policy, the plan usually refunds premiums plus some interest instead of paying the full benefit. Accidental causes are often covered in full from the start. Check the policy terms.
How to get covered in 3 steps
- Check your rate. Pick your state and answer a few quick questions about the coverage you want.
- Compare carriers. A licensed agent compares final expense insurance options from several insurers and explains the trade-offs.
- Apply and get covered. Many applications take one phone call. Coverage starts once the policy is issued and the first premium is paid.
Why work with an independent agency
We are an independent agency, which means we are not tied to one insurer. We compare plans from several carriers and help you pick the one that fits.
- More choices. Several carriers, not one.
- Help with health history. Some carriers view certain conditions more favorably than others.
- No added cost. Premiums are set by the carrier, not the agent.
- No pressure. If a policy is not a fit, we will say so.
What if you miss a payment?
Life insurance only works if it is in force when it is needed. Premiums can usually be paid monthly, quarterly or yearly. Paying yearly can cost a little less overall.
If you miss a payment, most policies have a grace period, often about a month, when coverage continues. After that the policy can lapse. Some policies can be reinstated within a set time, but the insurer may ask new health questions.
Tip: Automatic payments from a checking account are the simplest way to avoid a lapse.
Is final expense coverage right for you?
Often a good fit
- People who want their family to have cash for final costs right away, who don't have savings set aside for it, and who prefer a simple application with lifelong coverage.
Maybe not the right fit
- People with enough savings or existing life insurance earmarked for final costs, or who need a large amount to replace income, where term life usually fits better.
