Final expense insurance, also known as burial insurance or funeral insurance, is a type of life insurance designed to cover the costs associated with a person's funeral and other end-of-life expenses.

 

The primary purpose of this insurance is to provide financial assistance to the family or beneficiaries of the insured to help cover funeral expenses, medical bills, and other debts that may be left behind.

• Cash value component: Some final expense insurance policies may accumulate cash value over time. This cash value can be borrowed against or withdrawn by the policyholder during their lifetime.

• Lower coverage amounts: Policies typically offer lower coverage amounts, ranging from $5,000 to $50,000, making it more affordable than traditional life insurance.

• Simplified application process: It usually requires minimal underwriting, often with no medical exam, making it accessible to older adults or those with health issues.

• Fixed premiums: The premiums are typically fixed for life, meaning they won’t increase as the policyholder ages.