Loran Marmes

Final Expense Life Insurance – 3 Great Plans

Need life insurance coverage to pay for funeral expenses? Final Expense Life Insurance is an excellent choice.

Are you worried about leaving loved ones your bills for funeral and burial costs, unpaid medical bills, and nursing home expenses that weren’t covered under your health insurance?

With the average cost of a funeral running about $10,000, this is certainly a major expense that you don’t want to leave your family.

Final Expense Life Insurance is an easy and affordable way to get peace of mind for you and your family.


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best final expense insurance companies


What is Final Expense Life Insurance?


Also commonly referred to as burial insurance and funeral insurance, final expense life insurance is a whole life insurance policy that is purchased to cover the final expenses that everyone leaves when they die.

It is typically purchased by seniors who prefer to have a life insurance policy that is designated to pay final expenses. It’s especially warranted for seniors who do not have life insurance or do not have enough life insurance.

It’s not unusual for seniors to discover late in life that their insurance policy is no longer valid or does not have a death benefit sufficient to cover final expenses because of inflation since a policy was originally purchased. There are several issues that many seniors confront when they decide it’s time to look into covering their final expenses:

  • The life insurance they had for decades with their employer does not follow them when they retire.
  • An individual term policy they’ve invested in has expired or it was too expensive to renew it.
  • They had whole life insurance that was cashed in during the market crash in 2008 and when they reapplied years later, they couldn’t medically qualify.
  • They purchase a funeral policy many years ago and now realize that it’s not enough to cover a funeral and burial service.

There is good news, however, because final expense life insurance is simple to purchase, rates are affordable, and you don’t need to take a medical exam.


How much does Final Expense Insurance Cost?


With many seniors living on strict budgets, the cost of a final expense policy is typically the first question. The good news is that since Final Expense Insurance policies are generally $10,000 to $30,000 policies, the monthly premiums are generally affordable for most applicants.

Moreover, since final expense insurance is a very popular and competitive part of the insurance marketplace, there are many companies out there competing for your business,

Additionally, since senior applicants are likely to be dealing with medical issues, the insurance companies have very liberal underwriting guidelines that allow a large segment of the market to qualify for level benefit coverage (lowest rates and no waiting period).

In fact, many companies are now offering three different final expense life insurance plans so it’s unlikely that any applicant will be turned away for medical reasons.


Level Benefit Final Expense Insurance


A level benefit plan is traditional whole life insurance that offers first-day coverage and has the lowest rates available. Although no medical exam is required, the insurance company underwrites the policy by using electronic reports.

These reports generally consist of a MIB report, a Prescription Drug report,  and in some cases an MVR report, and the life insurance application that contains many questions about your current and historical health.

Level benefit plans are generally offered to seniors age 50 to 85 with face amounts of $5,000 to $30,000.

Here are actual rates for a $20,000 final expense policy for a healthy male and female non-smoker:

Age of Applicant Male Non-Smoker Female Non-Smoker
50 $52.45 $45.41
55 $66.11 $52.21
60 $84.32 $62.53
65 $106.47 $78.82
70 $138.13 $104.95
75 $186.34 $137.86
80 $272.85 $193.00
85 $382.27 $268.80

Although these are actual rates from various life insurance companies, all rates are subject to final underwriting.

For fast accurate rates for your actual age, please use the form on the right side of the page.

Graded Benefit Final Expense Insurance


If an applicant does not medically qualify for a level benefit final expense plan, most companies will offer a graded benefit plan. 

A graded benefit plan is similar to level benefit whole life insurance but has higher rates and contains a 2-year period when the death benefit is graded if death is the result of natural causes. Companies will vary on how they will pay the death benefit during the waiting period, but the majority will pay 30% of the death benefit the first year, 70% the second year, and 100% thereafter.

The graded benefit only applies if the insured’s death is from natural causes. The companies will pay the full death benefit from day one for death resulting from an accident.

Here are actual rates for a $20,000 graded benefit final expense policy for a male and female non-smoker:

Age of Applicant Male Non-Smoker Female Non-Smoker
50 $66.35 $57.09
55 $83.01 $68.20
60 $107.07 $84.86
65 $130.62 $106.03
70 $168.80 $137.22
75 $218.78 $189.39
80 $278.15 $238.57
85 $552.38 $439.98

Although these are actual rates from various life insurance companies, all rates are subject to final underwriting.

Guaranteed Issue Final Expense Insurance

A guaranteed issue life insurance plan has no medical underwriting. This means virtually anyone who is alive and within the eligible ages can purchase life insurance.

In exchange for accepting an unknown health risk, the life insurance companies that offer guaranteed issue plans will charge a higher rate and require a 2-year waiting period when if death occurs and is the result of natural causes, the company will 110% of all premiums paid to the company. Beginning on the 25th month, the insurance company will pay the full death benefit to the beneficiary.

If death is the result of an accident, the waiting period will not apply.

Here are actual rates for a $20,000 guaranteed issue final expense policy for a male and female non-smoker:

Age of Applicant Male Non-Smoker Female Non-Smoker
50 $87.27 $68.02
55 $114.95 $87.63
60 $126.87 $101.20
65 $169.40 $124.30
70 $197.45 $150.15
75 $278.12 $215.42
80 $415.67 $351.82
85 NA NA

As you can see from the rates listed above, a guaranteed issue life insurance policy is more expensive than level benefit or graded benefit plans but that is offset by being able to buy life insurance no matter how unhealthy you may be.

And by the way, guaranteed issue (guaranteed acceptance) is the final expense and funeral policies that are typically advertised and sold on TV.

Companies we Recommend


Family Benefit Life

Mutual of Omaha

Prosperity Life

Royal Neighbors of America

Sentinel Security Life

AIG – American General Life

For more information about Final Expense Life Insurance and to get a free consultation and confidential quotes, call us at 844-528-8688 during normal business hours or contact us through our website 24/7.

About the Author


Loran Marmes headshotMy name is Loran Marmes and I am the owner of MyBurialInsurancePlan.com. I would like to explain why we are your best option when it comes to Life Insurance. We are an Independent Agency and we contract with all of the top-rated carriers in the country so we can offer you products and pricing tailored to your needs and budget. After a four-year tour of duty, I went into the printing business and enjoyed meeting with clients and helping them solve printing-related business issues. After years of 12-hour days in the printing business, I got my Health and Life Insurance license and decided to specialize in Life Insurance because I have seen first hand what happens to a family when the main breadwinner dies without any coverage. My intentions will always be to put your needs first so that I can deliver solutions that will accommodate your circumstances and your budget.