What Is Final Expense Insurance?

Life insurance is often seen as a necessity, but what about its lesser-known cousin, final expense insurance? Many people are left wondering whether this is a worthwhile investment, how it operates, and which plan to choose. In this blog, we'll dive into these questions to help you make an informed decision.

Is Final Expense Insurance Worth It?

Final expense insurance is a type of insurance specifically designed to cover the costs associated with
passing away, such as funeral expenses, burial costs, and other end-of-life expenses. Unlike traditional
life insurance, it usually offers lower coverage amounts (ranging from $5,000 to $25,000 or more) and is
often easier to qualify for.

So, is it worth it? The answer often depends on your personal circumstances. If you don’t have
significant savings or other forms of insurance that would cover these costs, final expense insurance can
provide peace of mind for both you and your loved ones. The policy can ensure that the financial burden
of your passing doesn’t fall on your family. If you’re older and find that traditional life insurance policies
are too expensive or you don’t qualify due to health reasons, final expense insurance can be a
worthwhile alternative.

How Does Final Expense Insurance Work?

Final expense insurance functions similarly to a standard life insurance policy but on a smaller scale. After you pay a regular premium—either monthly, quarterly, or annually—the policy ensures that a lump sum will be paid out to your designated beneficiary upon your death. This money is generally tax- free and can be used at the beneficiary's discretion, although the intent is to use it for covering funeral and burial costs.There are two main types of final expense insurance:
  1. Level Benefit: This policy pays the full benefit amount from day one. Usually, there are no restrictions, but you may have to answer some health-related questions.
  2. Modified or Graded Benefit: In this policy, there is a waiting period (usually 2-3 years) during which the benefit increases over time. This is generally for people who have severe health issues and can't qualify for Level Benefit policies.

Is Final Expense Insurance Worth It?

Determining the “best” plan is subjective and dependent on your specific needs, health, and financial situation. However, there are a few things to consider when selecting a plan:


Compare prices but be wary of plans that are significantly cheaper than others, as they may come with caveats like higher premiums as you age or reduced benefits.

Financial Stability of the Provider

Choose an insurance company with a good reputation and strong financial ratings. Companies like A.M. Best rate insurance providers based on their financial stability.

Policy Features

Look for policies that offer features beneficial to you, such as accelerated death benefits in case of terminal illness, or the option to add a rider for child or spousal coverage.


Some policies may offer more flexibility in terms of premium payments and benefit changes, which could be a deciding factor depending on your financial situation.

Reviews and Customer Service

Don’t underestimate the power of customer reviews and the importance of strong customer service. How an insurance company treats its customers is often a strong indicator of your future experience with them.In summary, there is no one-size-fits-all answer to which final expense insurance plan is the best. It’s advisable to consult with a financial advisor and perhaps get multiple quotes to compare your options.

In Conclusion

Final expense insurance can be a valuable financial tool, especially for those who are not adequately covered by other types of insurance or savings. Knowing how it works and what to look for in a plan can help you make a choice that best suits your needs and provides peace of mind for your loved ones. Call One of our Qualified Final Expense Experts at Amerus Insurance Group 1-888-441-7891 or visit us at www.amerusfinancial.com for more information and to schedule a consultation.