Why some people go to $25,000
At $25,000, a final expense policy starts to do two jobs. The first is the funeral. The National Funeral Directors Association's 2023 General Price List Study put the national median cost of a funeral with viewing and burial at $8,300, before cemetery and marker costs. The second job is what comes after: helping the people you leave behind.
For a married couple, the death of one spouse can mean a smaller household income while many bills stay the same. Some people choose $25,000 so their spouse can handle the funeral and still have something left for the months that follow. Others want to leave a gift to a child or grandchild, or make sure a debt is paid.
The trade-off: more coverage, higher premium
A larger face amount means a larger premium. Because final expense premiums are usually level, you will pay that premium for as long as you keep the policy. Before you choose $25,000, it helps to look at what you would pay for $15,000 or $20,000 and decide whether the extra coverage is worth the difference to you.
Age makes a big difference here. In your 50s and 60s, many insurers may offer this amount. In your late 70s and 80s, some insurers offer less, and the premium for this amount can be high. The right amount is one you can keep paying, since the policy only stays in force while premiums are paid.
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How insurers decide at $25,000
Most final expense plans at $25,000 ask health questions. Many insurers ask about diagnosis dates, recent treatment, medications including insulin, complications and tobacco use, and many check prescription history. Your answers decide whether you get a level benefit plan or a graded plan. Guaranteed issue plans usually stop at smaller amounts, and any that reach higher usually pay a limited benefit for natural death in the first two years.
- Level benefit: full benefit usually paid from the first day if you qualify
- Graded benefit: reduced benefit for natural death in the first two or three years
- Accidental death on graded plans: usually covered in full from the start
Testing $25,000 against your own numbers
A simple way to test the amount is to add up what you want it to cover. Start with the funeral you want, then add cemetery costs if you plan on burial, any final bills you expect, and what you hope to leave your spouse. If the total lands near $25,000, the amount fits your goals. If it lands well below, a smaller policy may do the same job with a smaller premium.
What happens on a $25,000 quote call
The agent starts by asking what the $25,000 is meant to cover, then goes through your age, tobacco use and the health questions. They compare quotes from several insurers, point out which plans would be level and which graded, and can show smaller amounts for comparison. You can apply by phone if one fits. The quote is free and you are under no obligation.
