Final Expense Insurance: Covering Funeral Costs
By Jose Arias, independent life insurance broker, licensed since 2008
Published · Updated · 6 min read
Quick answer
Final expense insurance is small whole life coverage, commonly about 5,000 to 50,000 dollars, that helps families pay for a funeral, burial and final bills. It is often a fit for adults about 50 to 85. Simplified-issue plans ask a few health questions, while guaranteed-issue plans ask none.
Key takeaways
- Final expense coverage commonly ranges from about 5,000 to 50,000 dollars and is often a fit for adults about 50 to 85.
- The money goes to your beneficiary, who can use it for the funeral, burial, cremation or final bills.
- Simplified-issue plans ask a few health questions and can cost less if you qualify.
- Guaranteed-issue plans offer guaranteed acceptance based on age, but usually include a waiting period before the full benefit.
- Comparing several A-rated companies helps you find the right plan for your health and budget.
What is final expense insurance?
Final expense insurance is a small whole life policy designed for one clear purpose: to help your loved ones pay for your funeral, burial or cremation and the last bills that come at the end of life. Coverage commonly ranges from about 5,000 to 50,000 dollars, which keeps it simpler and more affordable than larger life insurance policies.
Because it is whole life coverage, it is designed to last for the rest of your life as long as you keep paying the premiums. Premiums typically stay level, and the coverage does not expire at a certain age the way term life does.
What does final expense insurance cover?
The policy pays a cash benefit to the person you name as beneficiary. They can use it however they need. Most families in Bakersfield and around Kern County use it for costs like these:
- Funeral home services, viewing and a memorial.
- Burial or cremation, a casket or urn, and a cemetery plot.
- Medical bills, credit cards or other final debts.
- Travel for family members coming from out of town.
- Any other bills the family needs to settle.
Who needs final expense insurance?
Final expense coverage is often a fit for adults about 50 to 85 who want to make sure their family is not left with the cost of a funeral. Many people come to it after retiring, after an older policy through work ends, or after seeing a friend or relative's family struggle to pay for services.
It is also a common choice for people who do not need a large life insurance policy anymore. The house may be paid off and the children grown, but you still want to cover your own final costs and leave things in order. Families across Bakersfield, Delano, Wasco, Shafter, Arvin and McFarland often tell us that peace of mind is the main reason they buy.
What types of final expense plans are there?
There are two main types. Which one fits depends mostly on your health. You can also read more on our final expense service page.
What is a simplified-issue final expense plan?
A simplified-issue plan asks a few health questions but requires no medical exam. If you can answer the questions in a way the company accepts, you can often get coverage that costs less than a guaranteed-issue plan and may pay the full benefit from day one. Many people with common health conditions that are well managed still qualify.
What is guaranteed acceptance life insurance?
A guaranteed-issue final expense plan offers guaranteed acceptance. There are no health questions and no exam. Acceptance is based on your age, within the ages the company allows. This can be a good option for people with serious health problems who may not qualify for other coverage.
Guaranteed-issue plans usually have a waiting period before the full benefit is paid. If death from natural causes happens during that period, the plan often returns the premiums paid, sometimes with some added interest, instead of the full benefit. Details vary by company, so it is important to read how a specific plan handles this.
Can I get final expense coverage with health problems?
Yes, in many cases. Some companies are more flexible about certain conditions than others, which is why comparing matters. A person with controlled diabetes or high blood pressure, for example, may qualify for a simplified-issue plan with one company even if another company says no.
If simplified-issue plans are not available, a guaranteed-issue plan can still provide coverage. A broker can help you try for the better-priced simplified-issue option first, then fall back on guaranteed acceptance if needed.
What affects the price of final expense insurance?
Price depends on your age, health, tobacco use and how much coverage you choose. The type of plan also matters, since simplified-issue coverage often costs less than guaranteed-issue for people who qualify. Choosing a smaller coverage amount can help keep payments comfortable on a fixed income.
If you are not sure how much to buy, start by thinking about the kind of service you want and any bills you would like to leave paid. Our guide on how much life insurance you need can help you think it through.
How can I make it easier on my family?
Buying the policy is the biggest step, but a few small actions can make things much easier when the time comes. Tell your beneficiary that the policy exists and where to find the paperwork. Keep the policy information with your other important papers, and make sure the beneficiary's name and contact details are up to date.
Some people also write down simple wishes for their service, such as burial or cremation, a favorite church or the songs they would like played. Sharing these wishes ahead of time helps your family focus on each other instead of guessing during a hard week.
How do I get final expense coverage in Bakersfield?
Jose Arias, an independent broker licensed since 2008, compares final expense plans from several A-rated companies and explains the differences in plain words, in English or Spanish. Many seniors appreciate being able to sit down in person at the Bakersfield office or handle everything by phone.
The consultation is free, with no obligation. Call the office or send a quick request through the Contact page, and Jose will help you find coverage that protects your family from the cost of saying goodbye.
Common questions
This article is general information, not financial, tax, or legal advice.
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