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Funeral or "Final Expense" Insurance
Written By Jo Gallo 6/24/2025
Key Points
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Final Expense Insurance is a type of whole life insurance designed to help families pay for funeral costs, with relatively low premiums making it accessible to those who can't afford to set aside cash for funeral expenses.
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The enrollment process involves choosing a benefit amount, completing an application with health questions, and receiving approval with premium rates based on your health status.
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Even people with sufficient assets should consider Final Expense Insurance because estate processing can take months, potentially causing family disputes over who pays funeral costs upfront.
What is Funeral Insurance?
Funeral Insurance is a type of Whole Life Insurance that is designed to help a policy owner's family and loved one's help pay for the cost of their funeral at the time of their passing. Its proper name is "Final Expense" Insurance.
Why Final Expense?
Final Expense can have a relatively low premium which grants access to many who want to pay for their funeral costs but don’t have the necessary cash or assets to do so.
It is also great for people who have the cash to pay for their funeral costs, but don’t want the funds tied up with their estate for many months while their family foots the bill.
Final Expense Enrollment Process
The enrollment process starts by deciding what you would like the benefit to be for your beneficiaries. We then fill out an application form with the insurance company of your choice. They will ask for your basic information as well as ask a series of health questions. The insurance company asks these health questions to see if they can accept you for coverage and what your monthly premium should be. As a rule of thumb, the less health issues you have the lower your monthly premium will be. If you have a few health issues, your premium may be higher or in certain cases your application may be denied.
After filling out the application, the insurance company will decide what your rate and enrollment status will be. You can then choose to go forward with the policy or continue searching.
What To Expect Upon Your Passing
When you set up your Final Expense policy, you will choose a Primary and Secondary beneficiary to receive the benefit upon your passing. These are the designated people you trust to go forward with your funeral. If everything stays up to date, they should receive your benefit within a week or two of your passing.
If your beneficiary changes their address or phone number, you must notify your insurance company immediately. Any changes to the beneficiary must be noted, otherwise your beneficiaries will run into issues receiving the benefit.
I Have More Than Enough Money To Pay For My Funeral, Should I Still Get Final Expense?
We still recommend getting Final Expense even if you have the cash and assets to cover your funeral expenses. Even the best planned estates can take many months to process, and this could lead to your loved ones fighting over who pays the funeral expenses in the meantime. It can also lead to those who paid for the funeral expenses to say they should get a bigger share of the estate.
Final Expense insurance allows you to set aside the amount you would like for your loved ones and leave the drama to a minimum.
About the Author
Jo Gallo is a licensed life and health insurance broker at NJ Life and Health. He has personally helped hundreds of people with their Medicare and life insurance needs across several states.