Final expense means more than the funeral
The name says it: final expense insurance is meant for the costs that come at the end of life. The funeral is usually the largest, but it is rarely the only one. Families often face a mix of bills in the weeks after a death, and a final expense policy can give them money to handle those without dipping into their own savings.
Final expense insurance is a smaller whole life policy. The insurer pays the benefit to your beneficiary, who decides how to use it, so the money is not limited to one kind of bill.
The funeral, and what national medians leave out
Start with the funeral itself. In its 2023 General Price List Study, the National Funeral Directors Association put the national median at $8,300 for a funeral with viewing and burial and $6,280 for viewing with cremation. A median is a midpoint, so many funerals cost more and many cost less.
Those medians do not include cemetery, plot, monument or marker costs. If burial is the plan, those can add a good deal to the total, so ask for those prices too.
Talk to a licensed agent: (949) 807-3995
Other final bills to think about
You do not have to cover all of these. Some people buy enough for the funeral only. Others add a cushion so their family is not left sorting out bills alone. Face amounts often run from a few thousand dollars up to about $50,000, depending on the insurer, your age and your health.
- A last medical, hospital or pharmacy bill
- Utilities, phone and other household bills
- Credit card or other small balances
- Travel and lodging for family coming in
- Flowers, an obituary notice or a meal after the service
How the plan types work
Which plan you can get comes down to health. On a level benefit plan, the insurer relies on a handful of yes or no health questions and often a prescription check, with no medical exam, and if you qualify, the whole benefit is usually available from the first day. For some health histories, insurers offer a graded or modified plan instead, which pays only part of the benefit if death from natural causes comes in the first two or three years.
When health questions would lead to a decline, guaranteed issue is the fallback. Acceptance is guaranteed within the plan's eligible ages, but if death from natural causes happens in the first two years, the payout is limited, often to the premiums paid plus interest. Expect a smaller face amount and a higher premium. Whatever the type, the premium is usually level and the coverage lasts as long as premiums are paid.
Planning your coverage from Texas
Tell the agent what you want the benefit to cover, from the funeral alone to the funeral plus final bills, and they can quote face amounts to match. They will ask your age, tobacco use and the insurers' health questions, then compare quotes from several insurers. You can apply by phone if one fits. The quote is free and there is no obligation.
Texas residents can talk with Eterna's licensed agents Monday to Friday, 8am to 8pm Central time. If you live in El Paso or Hudspeth county, which are on Mountain time, that is 7am to 7pm. The agents compare plans from several insurers, and plans, prices and availability vary by state, insurer, age and health. The Texas Department of Insurance, at https://www.tdi.texas.gov/, is where you can check an agent's license or ask an insurance question.
