Here's something most people don't realize until it's too late: the average funeral in America costs between $7,000 and $12,000. And if you want burial or cremation? Add another few thousand. That's a significant expense to drop on your family when they're already dealing with loss. Final expense insurance exists to solve exactly this problem—it's a small whole life policy designed to cover your end-of-life costs so your loved ones don't have to scramble for cash during an already difficult time.
The market for final expense insurance has exploded recently. In 2024, new premiums jumped 16% year-over-year to $1.05 billion, according to LIMRA's Life Insurers Council. Why the surge? America's aging population is growing rapidly—over 16% of the U.S. is now 65 or older—and more people are realizing they need a plan that won't burden their families. The good news? Getting covered is easier than ever, with most policies requiring no medical exam and approvals happening in minutes rather than weeks.
What Is Final Expense Insurance and How Does It Work?
Final expense insurance—sometimes called burial insurance or funeral insurance—is a type of whole life insurance with a smaller coverage amount, typically between $5,000 and $25,000. Unlike term life insurance that expires after 10, 20, or 30 years, final expense policies last your entire lifetime as long as you keep paying premiums. They're specifically designed to cover funeral costs, burial or cremation expenses, outstanding medical bills, and other end-of-life costs.
The application process is remarkably simple compared to traditional life insurance. Most policies don't require a medical exam—just a one-page health questionnaire. In 2024, 70% of new policies were no-exam policies, and over 40% were purchased entirely online. You can literally get approved while sitting on your couch. Once approved, your beneficiaries receive a lump-sum death benefit that they can use however they need—funeral expenses, cremation, outstanding debts, or even travel costs for family members attending services.
Because these are whole life policies, your premiums stay level for life—they won't increase as you age. And unlike term life, these policies build a small amount of cash value over time that you can borrow against if needed, though most people use them strictly for their intended purpose: ensuring their funeral is paid for.
Simplified Issue vs. Guaranteed Acceptance: Which Do You Need?
Final expense insurance comes in two main flavors, and understanding the difference can save you money and hassle.
Simplified issue policies require you to answer health questions but skip the medical exam. You'll answer questions about pre-existing conditions, medications, and recent hospitalizations. If you're in reasonably good health, this is usually your best bet. In 2024, 85% of final expense policies sold were simplified issue, with an average coverage amount of $14,535. These policies offer lower premiums than guaranteed issue and immediate full coverage—no waiting period. You can get approved in as little as 10 minutes, and if something happens to you the next day, your beneficiaries get the full death benefit.
Guaranteed acceptance policies, on the other hand, ask no health questions at all. Approval is automatic regardless of your medical history—cancer, heart disease, diabetes, you name it. The tradeoff? Higher premiums and usually a two-year waiting period. If you die from natural causes within the first two years, your beneficiaries typically receive only your premiums back plus interest, not the full death benefit. These policies averaged $9,786 in coverage in 2024 and made up about 15% of the market. They're ideal if you have serious health issues that would disqualify you from simplified issue coverage.
Here's the practical advice: always try simplified issue first. The premiums are more affordable, and you get immediate coverage. Only go with guaranteed acceptance if your health situation truly requires it.
What Does Final Expense Insurance Actually Cost?
Monthly premiums for final expense insurance typically run between $30 and $100, depending primarily on your age, gender, health status, and how much coverage you buy. The average policy costs $40 to $80 per month. Let's break down some real numbers so you know what to expect.
For a $10,000 policy—the most common coverage amount—a 75-year-old man pays around $113 per month on average, while a 75-year-old woman pays about $88 per month for the same coverage. Women live longer statistically, so they pay less. If you're younger and healthier, your premiums drop significantly. Someone in their 50s in good health might pay just $30 to $50 per month for $10,000 in coverage.
If you have significant health issues or you're over 70, expect to pay $70 to $120 per month. Smoking adds to your costs as well—insurers charge smokers higher premiums across the board. Your state of residence also matters; insurance regulations and cost of living vary by state, which affects pricing.
Most people buy between $10,000 and $20,000 in coverage, which keeps premiums affordable. Remember, this isn't about replacing your income or leaving a large inheritance—it's about covering specific end-of-life expenses. A $15,000 policy covers most funeral and burial costs comfortably, with some left over for miscellaneous expenses, and it won't break the bank on monthly premiums.
Why Premiums Are Rising and What It Means for You
That 16% premium surge from 2023 to 2024 isn't random—it's driven by fundamental demographic and economic shifts. The U.S. population is aging rapidly, with the 65-and-older demographic now exceeding 16% of the total population and growing. More seniors mean more demand for final expense insurance, and insurers are adjusting pricing to reflect increased risk and claims.
Funeral costs themselves are climbing too. The average funeral now runs $7,000 to $12,000, and if you want burial with a casket and cemetery plot, you're looking at much more. Rising healthcare costs also factor in—people are living longer but often with chronic conditions that eventually require expensive end-of-life care and medical bills.
What does this mean for you? Lock in your rate sooner rather than later. Because final expense policies offer level premiums for life, the rate you get today is the rate you'll pay in 10, 20, or 30 years. Every year you wait, you're older, potentially less healthy, and facing higher premiums. If you're considering final expense insurance, now is better than next year—both from a cost perspective and from a health perspective. The older you get, the more likely health issues will bump you into a higher rate class or force you into guaranteed acceptance policies with their higher costs and waiting periods.
How to Get Started with Final Expense Insurance
Shopping for final expense insurance is straightforward, especially compared to traditional life insurance. Start by estimating how much coverage you need. Add up your expected funeral costs, burial or cremation expenses, any outstanding medical bills you anticipate, and perhaps a small buffer for miscellaneous costs. For most people, $10,000 to $20,000 hits the sweet spot.
Next, compare quotes from multiple insurers. Premiums can vary significantly between companies for the same coverage, so don't settle for the first quote you get. Many companies offer online quotes and applications, which is how over 40% of policies were purchased in 2024. Look for reputable insurers with strong financial ratings—you want to be confident they'll be around to pay the claim when the time comes.
When you apply, be honest on your health questionnaire if you're going with simplified issue. Lying about health conditions can result in denied claims later, leaving your family with nothing. If you have serious health issues, don't let that discourage you—just apply for guaranteed acceptance coverage instead.
Once you're approved, review your policy documents carefully and make sure your beneficiary designation is correct. Then tell your family about the policy—where the documents are, which company issued it, and roughly how much coverage you have. The best final expense policy in the world doesn't help if nobody knows it exists.
Final expense insurance isn't glamorous, but it's one of the most thoughtful gifts you can give your family. For $30 to $100 a month, you ensure that when you're gone, your loved ones can focus on grieving and celebrating your life—not scrambling to cover funeral bills. With simplified underwriting, no medical exams, and approvals in minutes, there's never been an easier time to get covered. Don't wait until premiums climb higher or health issues complicate your options. Get a quote today and give yourself—and your family—peace of mind.
