Final Expense Cost

Kim Wilhelm CEO of Final Expense Direct Life Insurance
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Written by Kim Wilhelm

Kim Wilhelm on Twitter
Kim Wilhelm on Facebook
Kim Wilhelm on LinkedIn

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Last Updated 24 Sep 2021

What Does Final Expense Insurance Cost?

Factors influencing cost

Final expense insurance isn’t a single cost. Payment is designed in such a way that it is set according to factors such as:

  • Age 
  • Gender
  • Lifestyle
  • Medical history

Impact of each factor

The younger you are, the less you will need to pay, and the more likely you’ll qualify, similar in the way you can qualify for life insurance. The only numeric info here can be estimate-based. Not all final expense policies offer the same costs and benefits for the same person. Age is simply one factor in the equation. That being said, one thing is for certain – costs go up the longer you wait.

According to one sample, based on individuals who joined a policy with a $10,000 death benefit, a male at age 50 would pay a $30 monthly premium. But for that same person, that monthly cost more than triples if he joins at 75, and at that point, the premium would equate to $100 per month.

This leads to the factor of biological sex. The monthly final expense insurance cost for a woman wishing to join the example $10,000 policy at the age of 50 would be $25, and would only need to pay $72 per month if she joins the policy at age 75. This is because it has been scientifically proven that women live longer than men, causing men to be more of a higher risk factor for the insurance companies. In return, men will pay more in monthly premiums.

The impact of lifestyle varies according to the specific policy you purchase. This is up to the insurance company. If, for example, you’re a smoker, you will likely pay more than someone who leads a healthier lifestyle.

Health conditions play a major role – not just in the premium costs, but the likelihood of qualifying for certain policies. If you do not have serious health conditions, you’ll pay a lower premium. But if you have a serious condition, you may pay more for the policies you qualify for.


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Do Final Expense Premiums Increase As I Age?

Insurance premiums work differently depending on the type of insurance policy you enroll in. Annual rising costs are a significant concern because, initially, affordable insurance plans become expensive to the point where one has no choice but to surrender the policy. And with surrendering a policy, you’re left with an empty bank account, and your loved ones will receive nothing.

Final expense insurance doesn’t do that. It doesn’t hold your age against you.

What decides how much final expense premiums cost?

Final expense premiums do not go up after you join. What you pay in premiums is based on your circumstances before you acquire the policy.

The insurance company takes your age, lifestyle, gender, and health into account before issuing you a final expense insurance policy. You’re not rejected, but how you respond to the health questions influence the premiums you’ll pay throughout the time you hold the policy. Either way, your premium will never change. You pay the same amount every year – no more, no less.

For example, a woman without any health issues who joins the policy at the minimum age requirement will pay the least amount in premiums compared to any other group. Women have a higher average life expectancy than men. And the combined factors of a healthy lifestyle and no medical conditions translate to a person being able to pay a higher overall amount in premiums, despite that person paying the lowest amount every month.

A man in the opposite situation of the person in the previous example will pay the highest amount out of any group. While the premium will be much higher, it will never increase.

What are other benefits?

As long as you pay your premiums, you’ll keep your policy and your loved ones will get the death benefit you signed up for. Final expense insurance not only has premiums that stay the same no matter how long you’ve had your policy, but they’re also affordable from the very beginning. If you join at the earliest possible age (which many companies set at either 45 or 50 years old), your monthly payments will likely not surpass $30 per month. This is according to a rough estimate based on a $10,000 death benefit, which is on the lower end of the average amount people join the policy for.

How would I lose benefits?

The only way you could lose benefits is if you don’t pay your premiums at all. If you don’t pay premiums, your policy will lapse. The other way is if you surrender your policy. Other than that, your final expense insurance will be yours for a lifetime. You don’t have to worry about renewing it, or even getting medical exams.

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How to Save Money with Final Expense

Final expense insurance is an excellent way to be sure that your funeral and burial costs will be covered. Enrolling in a final expense policy can provide you with peace of mind and take some financial burden off your loved ones. Being knowledgeable about final expense is important in making an educated decision, so let’s go over how you can save money with final expense — to maximize its potential.

Find the Best Policy for You

Not all insurance companies offer the same policies. Doing research and speaking with multiple insurance providers is an important part of finding the policy that will work best for you and your needs. When selecting a final expense policy, make sure you’re aware of all the options available to you.

Plan Appropriately

Having an idea of what you want your funeral or burial to be like is important when saving money with final expense. Being extremely clear about your wishes is necessary so that when the time comes, your loved ones can spend the death benefit in the way you wanted.  

Including your end-of-life wishes in your will is an excellent way to ensure that they’ll be carried out. When recording your wishes, be very specific and clear about all of the details. While this isn’t entirely necessary, it can take some of the pressure off of family and provide peace of mind.  

Being specific about your wishes can also help you save money when planning for a funeral. Make clear, detailed instructions and outline things such as the budget, what companies or services you would like to be used, and how you want your final expense death benefit to be spent.

The Allowance Is Tax-Free

When the time comes and your family uses the final expense allowance, it will be tax-free. This is a huge relief and a big motivator for many to enroll in a final expense policy. Tax-free usage means the cost that’s withdrawn will be the actual amount that can be used, one of the biggest benefits of final expense insurance.

Does Final Expense and VA Work Together to Cover Funeral Costs?

For a veteran, choosing between final expense insurance and Veterans Affairs (VA) burial allowance is not an ultimatum. You can have both. It’s actually advised to have both because VA burial allowance is unlikely to cover the entire funeral cost by itself.

Having both of these is easier said than done. Final expense insurance is easily acquired, but VA burial allowance eligibility has its own hurdles. This article will examine the criteria for VA burial allowance eligibility and the expected cash value, along with how your expected cash value will influence the final expense insurance policy you choose.

VA burial allowance disqualifications

It’s important to understand disqualifying factors before going further. If you disqualify, then VA and final expense cannot work together by virtue of your inability to obtain VA burial allowance.

First, if your military career ended with you being dishonorably discharged, then you cannot get burial allowance. If you die while on active duty, then you cannot get VA burial allowance. The same applies if you try to get VA burial allowance while you’re serving a federal prison sentence, or if you’re serving as a member of congress.

How and where you die matters

Your death must occur under certain circumstances before you are able to qualify.

The circumstances for dying include dying:

  • As an outcome of a service-related disability
  • While in VA treatment facility
  • While traveling (with authorization) and at VA expense, to get treated at a VA facility
  • With an original claim for VA compensation (or pension pending) at the time of your death
  • While getting VA compensation
  • While eligible for the VA compensation at this time, you were receiving military retirement or disability payments

If one of these items describes you, then you can get VA coverage for your funeral. 

The amount you may qualify for

If you died on or after September 11, 2001, then you qualify for $2,000 (those who died prior to this date had VA compensation of $1,500). This is for service-related death.

For the burial allowance amounts for non-service-related deaths, the list will be written in the [starting to ending death date] – [amount of burial allowance; amount for burial plot]. Past dates are included to highlight consistency of burial allowance, and to show trends in increasing amounts for burial plots.

  • 10/1/20 to present – $300; $807
  • 10/1/19 to 9/30/20 – $300; $796
  • 10/1/18 to 9/30/19 – $300; $780
  • 10/1/17 to 9/30/18 – $300; $762
  • 10/1/16 to 9/30/17 – $300; $749
  • 10/1/15 to 9/30/16 – $300; $747

Impact on choosing a final expense insurance policy

The added death benefit here may influence one to purchase a final expense policy with a smaller overall death benefit. But it could also be argued that a final expense insurance policy should be purchased independently of how much money is dispersed from other sources. Regardless, the end result is additional funds for your loved ones to receive.

Final expense insurance is easy to join, and you can easily have a policy through a phone call alone. Call us today at 1-877-674-0236 if you would like to receive a free quote.

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