Final Expense Insurance
Final expense insurance — sometimes called burial insurance — is a smaller whole-life policy designed to help cover end-of-life costs such as funeral services, cremation, and remaining medical bills. It is intended to ease the burden on family members at a difficult time.
What it is
Final expense policies are typically small whole-life policies with a modest death benefit. They often feature simplified underwriting, and premiums are usually guaranteed to stay level for life, with the death benefit generally fixed.
Who it may fit
Older adults who want to make sure funeral and other final costs will not fall on family, and those who may not qualify for larger traditional policies due to age or health. It is not designed to replace income or cover large debts.
Key considerations
Because benefits are smaller, premiums can be relatively high per dollar of coverage. Some policies have a graded death benefit for the first few years for certain health situations, meaning the full benefit may not pay immediately. Benefits may affect Medicaid eligibility — discuss with an advisor.
What to discuss with a licensed professional
Whether a level or graded benefit applies, how premiums compare to other small-policy options, and how the policy interacts with your overall planning and any existing coverage.
This is educational information, not a recommendation of any specific product or carrier. A licensed insurance professional can help you evaluate what fits your goals and circumstances. Availability varies by state.