Consumer Advocacy
What you need to know
Final Expense Insurance
  • Premiums are low because it only covers funeral expenses
  • Can pay benefits within 24-48 hours 
  • Benefits depend on a health questionnaire and phone interview
  • Many companies only consider people between age 50-85
Our Approach

How we analyzed the best Final Expense Insurance Companies

Policy Features
The most important part of choosing final expense insurance is picking the type of coverage best for you. There are many kinds of coverage—we ranked them according to overall value.
Qualifications
There are a number of factors insurers deem permanently or temporarily disqualifying; all in the realm of age and health status. Each insurer has different criteria—be sure to read the fine print.
Financial Strength
As we usually do with insurers, we took into account long term financial outlooks when deciding our ratings. An insurer can’t pay a claim if it goes out of business.
Customer Experience
Reputation and customer reviews are an important component of our rating system. Our team looked at Better Business Bureau ratings and Trustpilot reviews as well as NAIC complaint ratios.

Our list of the best Final Expense Insurance Companies

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Our Research

More insight into our methodology

Policy Features

When looking at final expense insurance, we analyzed the different types of policy options to determine which products are better suited for the customer’s particular situation. As a form of life insurance, final expense coverage is included in already established life insurance plans or as a standalone policy.

There are basically two major types of life insurance policies: term and permanent. Term life insurance is set for a predetermined period, paying out benefits if the insured dies during the established duration of the policy. However, once the term has run its course, benefits lapse and customers are left without coverage. These policies tend to be inexpensive in comparison to other forms of coverage. Permanent life insurance is an all-encompassing phrase signifying insurance that provides lifelong coverage as long as premiums are paid. Policies of this ilk have the potential to accumulate cash value, allowing the insured to borrow against the premium payments already applied. We can further subdivide permanent life insurance into whole life and universal life.

Another type of coverage is guaranteed issue life insurance. This is a somewhat interchangeable name for final expense insurance. Whereas term and permanent life insurance policies call for medical examinations, guaranteed issue (as its name suggests) just requires paying the premiums on time and answering basic medical history questions. Payouts are made to a named beneficiary in the policy, though benefits are much lower than the more comprehensive life insurance plans mentioned above.

Premiums will vary depending on the insurance product and are either fixed or incremental.  Fixed premiums stay the same for the policy’s duration (usually for whole life insurance), while incremental premiums go up during its course (more associated with universal life). Generally, policies do not have restrictions regarding the use of the benefits. This way the funds can be used for anything pertaining to funeral and burials costs, or not.

Another aspect we examine is the time it takes for claims to pay out. A long or complicated claims process can delay receiving the funds, sometimes forcing beneficiaries to pay for final expense costs out of pocket. A faster payout period means they receive the benefits sooner rather than later.

Because of this diversity in policy options, a thorough comparison between companies and plans must be conducted when making the enrollment decision.

Qualifications

While extensive term or permanent life insurance policies require in-depth medical examinations, final expense insurance has few restrictions. Most plans only require medical history in the form of a questionnaire, instead of conducting a comprehensive health investigation. However, answering "yes" to specific questions might lead to disqualification. Disqualifying factors to receive coverage include, but are not limited to the following:

Age
Current hospitalization
Confinement to a nursing home
Receiving hospice care
Pre-existing conditions
Smoking

Even if the individual is not disqualified, answering affirmatively could lead to a hiatus in benefits; beneficiaries would not receive or would just collect a percentage of payouts during the first and second year of coverage. This should all be clarified by each company, if applicable. Minimum and maximum age limits differ among companies; some will ensure individuals up to 120 years of age, many don't go past 85, and some others do not have restraints. Minimum age requirements are laxer, but few start insuring if the individual is under 40 years old. Nonetheless, these factors may contribute to the amount of the premium payments.

Financial Strength

An insurance company's financial strength is of critical importance to their rating. Stable finances suggest that when payout time comes, the companies are prepared to assume their financial obligations. Since the benefits for final expense insurance are paid-out further along, we analyze the long-term outlooks for each company.

Credit rating agencies such as Standard and Poor's, Moody's, and AM Best collect and analyze data to determine overall financial stability. Obviously, the higher the rating, the more solid the company's standing is in the market. Their time doing business is another good indicator of financial strength, as older insurance companies have a longer, verifiable track record in the business.

Customer Experience

We rate insurance companies' customer experience using their ratings from the Better Business Bureau (BBB) and Trustpilot, their National Association of Insurance Commissioners (NAIC) complaint ratio for 2017, the companies' responses to complaints, and overall reviews online. Besides clear explanations of their final expense coverage during the enrollment process, insurance companies must have open and accessible communication channels with customers, particularly in claims processing and payouts.

Helpful information about Final Expense Insurance

Being caught off guard by the death of a loved one can cause financial distress for a family that can last for years to come. Funerals and cremation services can run into thousands, often tens of thousands of dollars, piling a huge financial burden onto the grief the family already has to deal with. The subject of funeral expenses is a tricky one to broach, but a necessary one. Final expense insurance is an ideal and inexpensive way to cover these costs. But how do you choose the right provider out of the myriad carriers and policy options out there? 

We've done over 200 hours of research into the final expense insurance sector and determined a list of the top providers. We've also taken into consideration the many factors that make different companies appropriate for different families depending on their needs. We present this information to you, the consumer, so that you can make the most educated decision possible when choosing a final expense insurance policy. 

According to the National Funeral Directors Association (NFDA), in 2015, the average cost for a funeral was approximately $8,500. The so-called cheaper option – cremation – still runs at an average of $6,580. It’s also important to note that these price estimates are only including funeral home expenses, not additional elements like flowers, receptions, newspaper obituaries, invitations to the service, among other things most will find necessary parts of a funeral ceremony.

Final expense insurance – also called burial or funeral coverage – is a type of life insurance designed to pay for only those expenses associated with the end of life, like medical costs, funerals, or cremations. Unlike life insurance, which can help support the beneficiaries for years and so typically have large payouts, final expense insurance is meant to cover just the funeral and associated costs, making the premiums much smaller than the regular life insurance.

So why not just rely on life insurance to pay for the funeral? The answer often comes down to time. Life insurance payouts can become mired in red tape and, if there are any circumstances that merit further investigation, policy payouts can take months, sometimes even years. Final expense insurance, on the other hand, can pay benefits within 24 to 48 hours of the policyholder’s death, giving family members the money they need in time to make the arrangements. Beneficiaries can then use the proceeds to cover anything, including burial, casket, flowers, organizing a reception, newspaper obituaries, or even a trip to spread ashes if that was the loved one’s wish. It can also be used to pay off outstanding credit card bills, auto loans, or medical care expenses incurred.

It’s worth noting, however, that although final expense insurance is easier to get that most life insurance policies, it does have a few caveats and medical considerations. First, every insurer has a specific age range for this type of insurance, with many companies only considering people between 50 to 85 years old for this type of policy. (There are some exceptions though, as a few companies do accept people as young as 40 years old.) And while most will take on a policyholder without a medical exam, the type of benefits you can get depends on a health questionnaire and a telephone interview. If you or your loved one is in a nursing home, has been diagnosed with a terminal illness, is a smoker, has diabetes, or other serious pre-existing conditions, chances are the insurer will offer a graded, modified, or guaranteed issue policy. With this type of policy, the insurance company will pay out only a portion if the policyholder passes away within the first 2 years, then full benefits if they pass away after the third year. On the other hand, if you or your loved are in good health, the insurer will probably offer a “level” policy. This is the least expensive policy which pays 100% of benefits if the insured were to pass away at any point after the first premium is paid.

To help you find the right insurer for your circumstances, our reviews highlight what the company’s medical requirements are, whether they provide a graded benefit option, and what the qualified age range is. And because it’s such an important and difficult conversation to have, we also feature an article on how to discuss the subject with family.

Understandably, most people avoid even thinking about end-of-life issues. But the truth is that, by taking care of the details beforehand, we could be helping ease the financial pressure on our loved ones and make a difficult time a bit easier to manage. 

FAQs about Final Expense Insurance

Does Social Security help cover funeral expenses?

Unfortunately, Social Security does not help cover the entire cost of funeral expenses. Social Security has two programs that help out after a loved one dies: a death benefit, which is a single lump sum of $255 paid to the deceased’s spouse or child, and survivor benefits, which is a monthly payment given to the widower and children. With funerals costs averaging $8,000, neither of these benefits offer enough money to cover all of the expenses.

What is the difference between level and graded benefits?

Level policy benefits are given to clients that are in excellent health, and they benefit the applicant immediately after death. This type of final expense policy is the only one that will fully cover a client without a waiting period, and offers premiums that are a little cheaper than those of a graded policy. In contrast, graded policy benefits apply to clients with minor health conditions, and there is usually a waiting period of 2 years before the entire death benefit can be paid to the client’s beneficiaries. Under the graded benefits, if there is a non-accidental death before the 2 year waiting period, the policy will only pay a percentage of the death benefit.

Should I get final expense insurance even if I already have life insurance?

If you already have life insurance, getting final expense insurance will depend on the type of life insurance you have. If you have term or whole life insurance, the policy can help pay for funerary expenses. However, if you have term life insurance and you end up outliving the policy term, final expense insurance can be a great solution.

How much should I be paying monthly for final expense insurance?

Premiums paid for your final expense insurance will vary per company and depend on your age: the older you are, the larger the premium will be. This is because, statistically, the closer a client is to dying, the more risk an insurance company takes when insuring them.

How much money can I/my family get from final expense insurance?

Final expense insurance offers a low coverage amount when compared to other types of life insurance products, since it’s meant to cover expenses such as medical bills, funeral and burial costs. Hence, the coverage averages between $5,000 to $25,000.

Is there an age limit when applying for final expense life insurance?

When applying for final expense insurance, some companies will have age limits. On average, these age limits range from 40 to 80 years old, but they will vary depending on the insurance company you are applying to. Typically, it is recommended for a person to apply for final expense insurance when they are younger, since premiums are much cheaper. The older you are when you solicit final expense insurance, the more expensive the premiums will be. Some companies do not have a specified age limit, but they usually will not insure older or sick applicants due to the risks that involve insuring them.

Our Final Expense Insurance Review Summed Up

Company NameBest
Lincoln Heritage Funeral Advantage Final Expense InsuranceOverall
True Blue Final Expense InsuranceAccess to Multiple Providers
Mutual of Omaha Final Expense InsuranceFor "No Medical Exam" Coverage
AIG Direct Final Expense InsuranceFlexible Qualification Criteria
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