Final Expense Insurance

Final Expense Insurance

Final expense insurance is a type of whole life insurance policy. These policies have small death benefits and can be used to cover the final expenses of someone’s death. This includes funeral or memorial services, embalming, casket, or cremation costs. In this article, we will go over the basics of final expense insurance to see if this type of policy is right for you.

The Basics

Final expense insurance is permanent life insurance. This means as long as you pay premiums, your policy will always be in effect. These types of policies have small death benefits. Their values range from $2,000 to $50,000. The only substantial difference between final expense insurance and other whole life insurance is the size of the death benefit.

How It Works

You apply for final expense insurance the same way you apply for any other types of life insurance, through an application. Once you receive approval, your policy will be issued. As you pay you premiums your policy will accumulate a cash value. During your lifetime, you are able to borrow against this cash value. However, it’s important to note, that any loans still outstanding at the time of your death will reduce your death benefit.

Pros and Cons

Before you decide if you would like a final expense insurance policy you should weigh both its pros and cons.


  • The application process does not include a medical exam. This allows people to qualify who otherwise might not be able to.
  • Your policy premiums will not increase.
  • The death benefit is not taxable.
  • The small death benefit of these policies make them very affordable.


  • Though these policies are meant to pay for your final expenses, your beneficiaries can technically use the funds for whatever they want.
  • If you let your policy lapse, your beneficiaries will not receive a death benefit.

Choosing Final Expense Insurance

After you weigh the options of whether final expense insurance is right for you, the next step is to apply for a policy. Meet with a qualified insurance agent who can help you to apply for a policy that will be right for you.

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