What it is
Final expense insurance is typically a whole life insurance policy with a smaller death benefit than many traditional life insurance policies. It is often designed for older adults who want to leave money to help with funeral costs or other final expenses.
How the benefit works
If the policy is in force when the insured person dies, the insurer pays the death benefit to the named beneficiary. The beneficiary generally decides how to use those funds.
What to compare
- Premium amount and whether it can change
- Immediate versus graded death benefits
- Coverage amount and policy exclusions
- Insurer financial strength and complaint history
- How the policy fits alongside existing savings or coverage
Important questions to ask
Ask whether benefits are available immediately, how premiums are guaranteed, what happens if a payment is missed, and whether the policy includes any riders or waiting periods.