When I help families understand their life insurance options, one question comes up more than any other: “Can I actually afford affordable final expense insurance?” The good news is that final expense insurance is specifically designed to be within reach of most budgets. In fact, it’s often the most affordable type of permanent life insurance available—and for many families, it’s exactly what they need.
For a complete overview, see final expense insurance explained.
Let me walk you through everything you need to know about affordable final expense insurance, from how it works to what you can expect to pay, so you can make the best decision for your family.
What Is Final Expense Insurance?
Final expense insurance is a type of whole life insurance specifically designed to cover end-of-life costs. Unlike term life insurance that eventually expires, final expense policies provide permanent coverage with premiums that never increase.
The coverage amounts are typically modest—usually between $5,000 and $50,000—because the goal isn’t to replace decades of income. Instead, it’s focused on covering specific expenses like:
- Funeral and burial costs
- Outstanding medical bills
- Credit card debt
- Small loans or personal debts
- Administrative expenses
What makes this insurance particularly appealing is that most policies offer guaranteed acceptance with simplified underwriting. This means you answer just a few health questions, and many people who couldn’t qualify for traditional life insurance can still get coverage.
Why Final Expense Insurance Is More Affordable
There’s a reason final expense insurance fits into most budgets—it’s designed differently than other types of life insurance.
Lower Coverage Amounts Since you’re not trying to replace a full income, the death benefits are much smaller. A $15,000 policy costs significantly less than a $500,000 policy, obviously. But this smaller amount often covers exactly what families need for final expenses.
Simplified Underwriting Most final expense policies don’t require medical exams, blood tests, or extensive medical records. This streamlined process means lower administrative costs for insurance companies, and they pass some of those savings on to you through lower premiums.
Permanent Coverage Unlike term insurance that gets expensive as you age, final expense insurance locks in your premium from day one. Your $75 monthly premium at age 60 will still be $75 when you’re 80.
Immediate Coverage Most policies provide full coverage immediately, unlike guaranteed issue policies that have waiting periods. This means your beneficiaries receive the full death benefit even if something happens in the first year.
What You Can Expect to Pay
I always tell my clients that final expense insurance premiums depend on three main factors: your age, your health, and the coverage amount you choose. Here’s what I typically see in the market:
Age 50-60
- $10,000 coverage: $25-45/month
- $15,000 coverage: $35-65/month
- $20,000 coverage: $45-85/month
Age 61-70
- $10,000 coverage: $35-65/month
- $15,000 coverage: $50-95/month
- $20,000 coverage: $65-125/month
Age 71-80
- $10,000 coverage: $55-95/month
- $15,000 coverage: $80-140/month
- $20,000 coverage: $105-185/month
Remember, these are general ranges. Your actual premium could be higher or lower depending on your specific health profile and which carrier you choose. That’s why I always shop multiple carriers for my clients—the price differences can be significant.
Factors That Affect Your Premium
Your Health Status
Even though final expense insurance has simplified underwriting, your health still matters. Here’s how different health situations typically affect pricing:
Excellent Health If you’re in great health with no medications and no chronic conditions, you’ll qualify for the best rates. Some carriers even offer “preferred” pricing for their healthiest applicants.
Controlled Conditions Conditions like high blood pressure, diabetes, or high cholesterol that are well-controlled with medication usually don’t prevent coverage. You might pay standard rates rather than preferred rates, but you’ll still qualify.
More Serious Conditions Even if you have heart disease, cancer history, or other serious conditions, you can often still get coverage. You might pay higher premiums, but many carriers are surprisingly generous with final expense policies.
Your Age and Gender
Age is the biggest factor in life insurance pricing. Every year you wait, premiums increase. Women typically pay slightly less than men due to longer life expectancy, but the difference is usually modest with final expense insurance.
Smoking Status
Smoking significantly impacts your premium—often doubling the cost. However, many carriers only require that you’ve been tobacco-free for 12 months to qualify for non-smoker rates, which is shorter than the 2-5 years required by traditional life insurance.
Coverage Amount
This one’s straightforward—more coverage costs more. But the relationship isn’t always linear. Sometimes increasing from $15,000 to $20,000 in coverage costs less per thousand than you might expect due to how carriers structure their pricing.
Types of Final Expense Policies
Simplified Issue Final Expense
This is the most common type. You answer 8-15 health questions, but there’s no medical exam. Coverage is usually immediate, and most people qualify. The premiums are reasonable, and you get full coverage from day one.
The trade-off is that certain health conditions automatically disqualify you. Things like being on oxygen, having cancer within the past two years, or being in a nursing home typically result in a decline.
Guaranteed Issue Final Expense
If you can’t qualify for simplified issue coverage, guaranteed issue policies accept everyone—no health questions at all. The catch is that there’s usually a two-year waiting period. If you pass away from illness in the first two years, beneficiaries only receive the premiums paid plus interest.
These policies cost more than simplified issue, but they’re often the only option for people with serious health conditions.
Fully Underwritten Final Expense
Some carriers offer final expense policies with full medical underwriting—exams, blood tests, the works. These offer the best rates if you qualify, but most people choose final expense specifically to avoid the underwriting hassle.
How to Find Affordable Final Expense Insurance
Shop Multiple Carriers
This is probably the most important advice I can give you. Different insurance companies have very different pricing and underwriting approaches. A company that offers great rates for diabetics might be expensive for someone with heart disease.
I’ve seen price differences of 30-50% between carriers for the exact same coverage and health profile. That’s why I always get quotes from at least 4-5 different companies for each client.
Consider Your Real Coverage Needs
Don’t automatically assume you need $25,000 in coverage. Look at actual funeral costs in your area, your outstanding debts, and what you want to leave behind for administrative expenses.
In many areas, a quality funeral can be arranged for $8,000-$12,000. If you don’t have significant debt, a $15,000 policy might be perfect and save you $20-30 per month compared to a $25,000 policy.
Time It Right
If you’re healthy now but have family history or conditions that might develop, don’t wait. Final expense insurance premiums increase every year you age, and health conditions that develop after you get coverage don’t affect your policy.
Work with an Independent Agent
I might be biased here, but working with an independent agent gives you access to multiple carriers without having to research and contact each company individually. We can often spot opportunities and combinations you might miss shopping on your own.
Common Myths About Final Expense Insurance
“It’s Too Expensive for What You Get”
I hear this occasionally, usually from people comparing final expense insurance to term life insurance. Yes, term insurance gives you more coverage per dollar—but only temporarily. Term insurance expires, usually when you need life insurance most.
Final expense insurance is permanent coverage. Your beneficiaries will receive the death benefit whether you pass away next year or in 30 years.
“The Coverage Isn’t Enough”
For some families, that’s true. If you need to replace income or cover a mortgage, final expense insurance isn’t the right solution. But if your goal is simply to avoid leaving your family with burial costs and final bills, $10,000-$20,000 is often exactly right.
“I’m Too Unhealthy to Qualify”
This surprises people, but final expense insurance is designed for people who can’t get traditional coverage. I’ve helped clients with diabetes, heart disease, cancer history, and even some currently receiving treatment get affordable coverage.
Even if you can’t qualify for simplified issue coverage, guaranteed issue policies ensure that almost everyone can get some coverage.
Questions to Ask When Shopping
When you’re comparing final expense policies, here are the key questions I recommend asking:
What health conditions automatically disqualify me? Each carrier has different knockout questions. One might decline you for being on oxygen while another only cares if you’re homebound.
Is the coverage immediate? Most simplified issue policies offer immediate coverage, but some have short waiting periods for accidental death vs. natural causes.
Do premiums ever increase? They shouldn’t with a true final expense whole life policy, but some companies offer term policies disguised as final expense insurance.
What happens if I miss a premium? Look for policies with a grace period and automatic premium loan features that help prevent accidental lapses.
Is there cash value? Final expense policies typically build small amounts of cash value that you can borrow against if needed.
Making the Right Choice for Your Family
The best affordable final expense insurance is the policy that fits your budget, covers your needs, and comes from a financially stable company. It’s not necessarily the cheapest policy or the one with the most coverage—it’s the one that gives you peace of mind without straining your monthly budget.
I typically recommend that people consider final expense insurance if:
- They’re over age 50 and want permanent coverage
- They have health conditions that make traditional life insurance expensive or unavailable
- They want to cover specific end-of-life expenses without leaving a large windfall
- They prefer predictable, level premiums over increasing term insurance costs
Remember, the goal isn’t to make your family rich—it’s to make sure they’re not burdened with unexpected expenses during an already difficult time.
Taking the Next Step
Finding the right affordable final expense insurance starts with understanding your options. Every family’s situation is different, which is why I don’t believe in one-size-fits-all solutions. As an independent agent, I take the time to understand your needs, health situation, and budget, then shop multiple carriers to find coverage that works for you.
The application process is typically straightforward—usually just a phone interview that takes 15-20 minutes. Most of my clients are approved within a few days and have their coverage in force within a week or two.
- Final expense insurance is permanent coverage with premiums that never increase
- No medical exams required—just health questions—so it’s easier to qualify than traditional life insurance
- Coverage amounts typically $5,000-$50,000, focused on end-of-life expenses
- Shop multiple carriers—price differences of 30-50% are common for identical coverage
- Even serious health conditions often don’t prevent coverage, though guaranteed issue is available for everyone
Related Reading
- Funeral Insurance for Seniors: Your Complete Guide
- Burial Insurance for Seniors Over 80: Your Complete Guide
- Understanding Final Expense Insurance
- Burial Insurance for Seniors Over 70: Your Complete Guide
Ready to explore your options? Schedule a free consultation and let’s find the affordable final expense insurance that gives you and your family the peace of mind you deserve.
