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Final Expense Insurance

What is the difference between final expense insurance and regular life insurance?

Regular life insurance — term or whole life — is usually written for larger amounts, often $100,000 or more, and is meant to replace income, pay off a mortgage, or provide long-term financial security for dependents. It typically requires more detailed underwriting, and sometimes a medical exam.

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Final expense insurance is a small whole life policy, usually $2,000 to $50,000, purpose-built to cover funeral and end-of-life costs. Applications are simpler, approval is faster, and coverage is permanent as long as premiums are paid.

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Someone who already has adequate life insurance may not need final expense coverage, while someone without any coverage, or who is older and no longer eligible for larger term policies, often finds final expense insurance a practical fit.

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