Final expense insurance is a small whole life policy designed to pay for your funeral, burial or cremation, and the bills you leave behind. For many seniors, it’s the simplest way to make sure loved ones aren’t left scrambling to cover thousands of dollars at a difficult time.
This practical guide covers what final expense insurance is, what it really costs, how to compare carriers and policy types, and the mistakes to avoid. For a quick overview and rate chart, see our final expense life insurance for seniors page.
Key takeaways
- Final expense insurance is permanent whole life coverage, usually $5,000 to $50,000, sold to people roughly 50 to 85.
- Premiums never rise, coverage never expires, and most policies require no medical exam.
- The median funeral with viewing and burial cost about $8,300 in 2023, before cemetery costs.
- Choosing the right policy type matters as much as price. Many seniors qualify for full day-one coverage.
What is final expense insurance for seniors?
Final expense insurance, sometimes called burial insurance, is whole life insurance with a small death benefit. Like any whole life policy, it lasts for the rest of your life as long as you pay premiums, the premium is locked in, and it builds a modest cash value. What sets it apart is that it’s built for seniors: coverage amounts are small, applications are short, and approval usually depends on a few health questions instead of a medical exam.
The death benefit goes to the beneficiary you choose, generally free of federal income tax, according to the IRS. Your beneficiary can use it for any purpose, not just the funeral.
What final expense insurance can pay for
- Funeral home services, viewing, and the ceremony
- Burial or cremation, a casket or urn, and a headstone or marker
- Cemetery plot and opening and closing of the grave
- Remaining medical bills, including hospice or hospital costs
- Credit card balances and other small debts
- Travel for family members and estate settlement costs
How much does a funeral cost?
According to the National Funeral Directors Association, the 2023 median cost of a funeral with viewing and burial was about $8,300, and a funeral with viewing and cremation was about $6,280. Those figures don’t include cemetery charges, a headstone, flowers, or an obituary, which can add thousands more. Costs vary widely by region and funeral home.
Under the Federal Trade Commission’s Funeral Rule, funeral homes must give you an itemized price list, so you or your family can compare providers and pay only for what you choose.
How much coverage do seniors need?
Start with the funeral you want, then add other costs your family would face:
- Funeral and burial or cremation: about $6,000 to $12,000 for many families.
- Cemetery and headstone: $2,000 to $5,000 or more if you don’t already own a plot.
- Final medical bills and small debts: whatever your savings won’t cover.
- A small cushion: for travel, estate costs, or a gift to a grandchild.
Most seniors land between $10,000 and $25,000. Choosing a little more than you think you need guards against rising funeral prices, but don’t buy more than you can comfortably afford on a fixed income.
Final expense insurance cost by age and coverage
| Coverage | Age 65 (men) | Age 65 (women) | Age 75 (men) | Age 75 (women) |
|---|---|---|---|---|
| $5,000 | $16–$24 | $12–$19 | $28–$43 | $23–$34 |
| $10,000 | $32–$48 | $25–$38 | $57–$85 | $46–$68 |
| $15,000 | $48–$72 | $38–$57 | $86–$128 | $69–$103 |
| $20,000 | $64–$95 | $51–$76 | $115–$170 | $92–$136 |
| $25,000 | $80–$119 | $64–$95 | $144–$213 | $115–$171 |
Illustrative monthly estimates from AccuQuote’s calculator model for simplified issue final expense coverage, non-smoker in good health. Not a quote.
Because premiums rise with every birthday and are locked once you buy, a 65-year-old pays far less over a lifetime than someone who waits until 75. Tobacco use also raises the price. In our model, a 65-year-old male smoker pays about $43 to $65 a month for $10,000 of coverage, compared with $32 to $48 for a non-smoker.
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Get my free quoteThe three types of final expense coverage
Carriers sort applicants into tiers based on a short health questionnaire. Which one you qualify for affects both your price and when full coverage begins.
| Type | Health questions | When full coverage starts | Best for |
|---|---|---|---|
| Level (immediate) benefit | Yes, a short list | Day one | Seniors in fair to good health |
| Graded benefit | Yes | Partial benefit at first, full benefit after about two to three years | Seniors with some serious health conditions |
| Guaranteed issue | None | Usually after a two- to three-year waiting period | Seniors who don’t qualify elsewhere |
General comparison. Waiting periods, partial benefits, and eligibility vary by carrier and state.
With graded and guaranteed issue policies, if death from natural causes happens during the waiting period, many carriers refund premiums paid, often with interest, rather than paying the full benefit. Accidental deaths are usually covered in full from day one. Learn more about simplified issue life insurance, or estimate guaranteed issue costs with the guaranteed life insurance calculator.
How to compare final expense carriers
There’s no single best final expense company for every senior. The best carrier for you is the one that offers the strongest coverage for your health, at a price you can afford. Compare these factors:
- Financial strength. Choose an insurer with a strong rating from an independent agency such as AM Best, since your family may need the claim paid decades from now.
- How it treats your health. Carriers ask different questions. One might give level coverage to someone with controlled diabetes or a past heart attack, while another offers only a graded policy.
- Age limits and coverage amounts. Most carriers issue policies between about 50 and 85, with maximums from $25,000 to $50,000.
- Waiting periods. Look for day-one coverage if you qualify, and compare the length and refund terms of any graded period.
- Claims experience. Ask how quickly the carrier typically pays claims and what documents your beneficiary will need.
- Payment options. Many carriers let you pay monthly by bank draft and choose a draft date that lines up with your Social Security payment.
- Complaint history. The NAIC offers tools to check an insurer’s license and complaint record in your state.
Because each carrier’s health questions differ, the fastest way to find your best option is to compare several at once. An independent agency like AccuQuote can match your health history to the carriers most likely to offer you day-one coverage.
Final expense insurance vs. other options
| Option | How it works | Trade-off |
|---|---|---|
| Final expense insurance | Small whole life policy; benefit goes to your beneficiary | Costs more per $1,000 than larger policies |
| Preneed insurance | Prepays a specific funeral home | Money is tied to that provider and plan |
| Term life insurance | Larger benefit for a set period | May expire before you die, and gets costly at older ages |
| Savings account | You set money aside yourself | Not guaranteed to be enough if you die sooner than planned |
General comparison.
If you’re in good health and need more than $50,000, compare term life insurance for seniors or guaranteed universal life, which can offer more coverage per dollar.
Mistakes seniors should avoid
- Buying guaranteed issue when you could qualify for more. Guaranteed issue costs more and has a waiting period. Always see whether you qualify for a level benefit first.
- Shading the truth on health questions. Misstatements can lead to a denied claim. Answer every question accurately.
- Buying more than your budget can sustain. If you stop paying, coverage can lapse. Choose a premium you can keep paying for life.
- Waiting too long. Every birthday raises your rate, and a new diagnosis could move you into a costlier tier.
- Keeping the policy a secret. Tell your beneficiary the policy exists and where to find it.
How to buy final expense insurance
1. Estimate your costs. Price the funeral you want and add debts and medical bills.
2. Gather your health details. Have your medications, diagnoses, and dates of treatment handy.
3. Compare quotes. Request quotes from several carriers to see who offers you a level benefit at the best price.
4. Apply. Most applications take 15 to 30 minutes by phone or online, and many carriers decide within days.
5. Share your plan. Tell your beneficiary about the policy, and consider writing down your funeral wishes too.
Final expense insurance FAQs
What is final expense insurance for seniors?
It’s a small whole life policy, usually $5,000 to $50,000, designed to cover funeral costs and final bills. Premiums are fixed, coverage lasts for life, and most policies don’t require a medical exam.
How much does final expense insurance cost?
In our model, a healthy 65-year-old man might pay about $32 to $48 a month for $10,000 of coverage. At 75, it’s about $57 to $85 a month.
What is the best final expense insurance for seniors?
The best policy is one that gives you day-one coverage from a financially strong carrier at a price you can keep paying. Because carriers treat health conditions differently, comparing several is the best way to find it.
Is there a waiting period on final expense insurance?
Level benefit policies usually cover you in full from day one. Graded and guaranteed issue policies often have a two- to three-year waiting period for deaths from natural causes.
Can I get final expense insurance at 80 or 85?
Yes. Many carriers issue final expense policies up to about age 85, though premiums are higher at older ages.
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