What is Final Expense Life Insurance
and why is it important?
Final expense life insurance is a type of life insurance designed to cover the costs that come up when someone passes away. These costs often include funeral and burial expenses, medical bills, and other end-of-life expenses, which can easily add up to thousands of dollars.
​
It’s useful because it helps protect loved ones from having to pay these expenses out of pocket during an already difficult time. Final expense insurance typically offers smaller coverage amounts than traditional life insurance, making it more affordable and easier to qualify for—often with no medical exam required. The payout goes directly to the beneficiary, who can use the money however it’s needed, providing both financial relief and peace of mind.
Common Questions People Have When Looking Into Final Expense Life Insurance
-
Is this Life Insurance?
​Yes. Final expense insurance is a type of permanent Whole Life Insurance designed to help pay for funeral, burial, cremation, and other end-of-life costs. It’s still life insurance — the company pays a death benefit to your beneficiaries when you pass away.
​
-
Can I qualify for level coverage even if I have health conditions?
​Often, yes. Many final expense policies let you qualify for level coverage even with health issues through simplified underwriting (no medical exam, fewer health questions). Some people who don’t qualify for level rates may still get coverage through guaranteed issue plans. SimpleLifeSolutions has level plans available for you even with conditions like diabetes, kidney disease, congestive heart failure, parkinsons, etc.
​
-
What is level coverage?
Level coverage means the death benefit remains the same amount throughout the life of the policy, and premiums stay the same as well. Level coverage also means there is no 2-year waiting period and the policy is in full effect as soon as the first premium is paid. This gives families predictable protection without unexpected changes over time.
​
-
What is guaranteed issue coverage?
Guaranteed issue coverage is a policy anyone in the eligible age range can get, regardless of health — without medical exams or health questions. The trade-off is usually a waiting or graded period (often two years) before the full benefit is paid if death occurs from natural causes.
​
-
Does this coverage expire or have rate increases?
Most final expense plans are permanent — they don’t expire as long as premiums are paid. And if they’re whole life, premiums don’t increase as you age.
​
-
What is a common monthly premium?
Premiums vary by age, coverage amount, and health. For example a $15,000 policy often runs around $50–$100/month for people over 60. Other averages show similar pricing depending on gender and policy type.
​
-
How do insurance companies check medical records and approve me without a medical exam?
The insurer uses your answers to health questions and runs checks like prescription history and industry databases (like the MIB — Medical Information Bureau) to compare with what you reported.
​
-
How can I make sure I am getting the best rate?
To make sure you are getting the best rate, it’s important to work with a brokerage like SimpleLifeSolutions. Unlike agents who represent only one insurance company, a brokerage can shop multiple carriers licensed in your state and compare prices, underwriting guidelines, and policy features on your behalf. This ensures you’re matched with the company that offers the best coverage and pricing for your specific health and budget, rather than being limited to a single option.
​
-
I spoke with an agent or plan to, how do I know if they are legit?
​If you’ve spoken with an agent or plan to, you can confirm they are legitimate by asking for their insurance license and verifying it through your state’s Department of Insurance. A legitimate agent should be transparent, properly licensed, and able to explain the companies they represent and why a specific policy fits your needs. Working with an established brokerage like SimpleLifeSolutions also adds an extra layer of trust and accountability.
​
-
Does my beneficiary receive the funds? And can they do with the money as they please?
When the policyholder passes away, the beneficiary receives the funds directly. In most cases, the benefit is paid tax-free and can be used however the beneficiary chooses. While many families use the money for funeral and burial expenses, it can also be used for bills, travel, or any other immediate financial needs.
​
-
What is the average out of pocket cost for a funeral in the United States?
The average out-of-pocket cost for a funeral in the United States typically ranges from about $7,000 to $12,000, depending on whether burial or cremation is chosen and where services are held. These costs often must be paid quickly, which is why planning ahead with final expense life insurance can be such an important step in protecting loved ones.