Why the premium matters more than the face amount
On a fixed income, the most important number in a final expense policy is the premium. Coverage stays in force only as long as premiums are paid. A policy that strains your budget and stops after a few years may leave your family with nothing from it. A smaller policy you can pay for the rest of your life does the job it was bought to do.
That is why many people on a set retirement income start with the premium and work backward, instead of picking a face amount first.
Working backward from a comfortable premium
For a reference point, the National Funeral Directors Association's 2023 General Price List Study put the national median cost of a funeral with viewing and cremation at $6,280 and with viewing and burial at $8,300. If your premium buys less coverage than that, the policy can still pay a large share, and savings or family can cover the rest. A simple way to find your number is below.
- Look at your monthly income and your fixed bills
- Choose a premium that still leaves room for surprises
- Ask for quotes at a few face amounts around that premium
- Compare those amounts with the funeral you want
Talk to a licensed agent: (949) 807-3995
What moves the premium up or down
Several things change what a given face amount costs you. Your age when the policy starts is one of the biggest. Tobacco use raises premiums with many insurers. Your health answers decide whether you get a level benefit plan or a graded one, and plans with no health questions usually cost the most for the same amount and pay a limited benefit for natural death in the first two years.
The face amount itself is the part you control. Moving from $15,000 to $10,000, or from $10,000 to $7,500, can bring the premium closer to what fits your budget. Comparing several insurers can also help, since each one prices the same person differently.
Keeping the policy in force
Once you have a policy, keeping it is what matters. Setting the payment to come out right after your income arrives can help. So can choosing an amount you would still be comfortable with if another bill went up. Because the premium is usually level, the amount you start with is the amount you plan around for the life of the policy.
On the call, you can tell the agent the premium you have in mind before anything else. They will ask your age, tobacco use and the health questions, then compare plans from several insurers to find face amounts that fit that premium. You can apply by phone if one works, choose a payment date where the insurer allows it, and there is no obligation.
