Final expense life insurance, or burial insurance, provides enough coverage to pay for end-of-life expenses like medical care and funeral costs, but at a higher cost than term life insurance.
Life insurance provides your loved ones with an income replacement if you are no longer around to provide for them. When your a senior or retired and you don’t have dependents anymore, you might not need traditional life insurance coverage. However, there is still one big cost you need to plan for your funeral.
The funeral can cost anywhere from $8000-$15,000 not including other end-of-life expenses such as medical bills. These can end up falling on the shoulders of loved ones and cause a financial strain. That’s where final expense (or burial) insurance comes in. If you’re looking for life insurance coverage that can cover the cost of your death and funeral arrangements, final expenses insurance may be right for you. Due to its high cost, its best suited for people who are ineligible for traditional life insurance.