How Does Final Expense Insurance Work In Texas?

How dos final expense insurance work for Texans?

For many people, funeral and end-of-life expenses can be overwhelming. 

For people that live in Texas, they often find themselves in a difficult situation when it comes to final expenses. 

Final Expense Direct is based in Houston, so we know Texans! 

Texans are known for being tough, independent people. 

However, when it comes to preparing for our end of life, even the toughest Texan can benefit from some help. 

It’s common for people to be scared when considering issues like funeral costs and medical bills left behind. Not knowing the solution will make the passing of a loved one that much scarier. 

Final expense insurance is a popular way for Texans to ease the burden on their loved ones by ensuring that their final expenses are taken care of. 

In today’s article, we look at how final expense insurance works in Texas and how it can help you and your family.


Expected Costs of Funeral and Burials in Texas

Funeral and Burial expenses can be overwhelming, especially as people age. 

The NFDA conducts a yearly study that looks at the changes in cost for final arrangements across the country. 

To do this, they survey funeral homes in different states and compile the data. 

In Texas, Louisiana, Oklahoma, and Arkansas, the median cost of a funeral with a burial is $7196.  

In Texas alone, the average funeral cost is close to $10,000.

The NFDA also put out numbers that showed funeral costs have risen over 6% since 2017. This means they will likely continue to increase with each following year. 

Leading Causes of Death in Texas

If you’re a Texan, it makes sense that you feel the need to look into final expense insurance to help alleviate the financial burden of our end-of-life expenses. 

A final expense insurance policy protects you and your family from the rising costs associated with a funeral.

In addition, the following top 10 leading causes of death in Texas can leave behind expensive medical debt. See the chart below:

The leading causes of death in Texas

Why Get Final Expense Insurance?

Final expense insurance is beneficial for many Texas residents. 

Outside of the general final expense benefits, it’s important to look at the benefits as it relates to the location. 

Here are the top 4 reasons why Texans needs final expense insurance:

Guaranteed Approval: 

The leading cause of death in Texas is heart disease. 

However, most life insurance companies will deny you coverage if you have heart disease, or other serious medical issues. 

Final expense insurance on the other hand will guarantee you coverage even with heart disease and other serious illnesses.

And, once you’ve obtained a policy, your rate is locked in, so your premiums won’t increase. 

Peace of Mind:

Many Texans may feel the financial burden left on their loved ones when they pass. 

A final expense policy will give you peace of mind knowing that expenses are taken care of, big or small. 

Your loved ones can use the final expense benefits for anything they need. 

Your Loved Ones Can Cover Your Entire Funeral: 

This benefit is similar to offering peace of mind, but in cities like San Antonio or Forth Worth, the cost of a funeral startsat $7,000. 

With a simplified issue policy or a guaranteed issue policy, you can get benefits up to $35,000 and $25,000 respectively. That’s more than enough to cover a funeral no matter which part of Texas you live in.

No Medical Exam to be Approved:

Most life insurance policies will require you to take a medical exam which determines what kind of policy you get. 

With final expense insurance in Texas, you don’t need to take a medical exam. Approval is instant and you can even do it over the phone.

What Types of Final Expense Policies Are Available for Texans? 

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Final Expense Life Insurance Quote Online

As a Texan, finding the right policy for you can seem overwhelming, but it doesn’t have to be! 

It depends on which company you choose to go with, but most Texans have 3 coverage options for final expense insurance: 

  • Immediate Benefit
  • Graded/Modified Benefit
  • Guaranteed Issue

If you’re between the ages 45-85 you will never be denied coverage for final expense insurance, however, your age and health condition can determine which policy you qualify for. 

In Texas, here are the differences between the 3 types of final expense insurance

Immediate Benefit:

Immediate Benefit is the most common type of final expense insurance. 

In Texas, Immediate Benefit final expense insurance offers the lowest cost and provides the full death benefit if you pass within the first two years of obtaining the policy. 

Graded/Modified Benefit Final Expense Insurance:

Graded/Modified Benefit final expense insurance is a type of policy that is best for those with semi-serious health conditions. 

In Texas, a graded final expense insurance policy has a two-year waiting period before a benefit can be received except for death by accident, which pays the full death benefit during the first two years.

Here’s how benefits are distributed: 

If you die within the first year of being insured, your loved ones will get anywhere from 25-50%.

The year after that, they will receive anywhere from 50-75%, depending on the insurance company.

Once year three has passed, your loved ones can expect to receive the full benefit. 

If you want to learn more about graded insurance, we wrote about it in our guide that covers everything about final expense insurance.

Guaranteed Issue Final Expense Insurance:

In Texas, a Guaranteed Issue final expense insurance policy works similarly to Graded/Modified in two ways: 

  • The death benefit has a two-year waiting period
  • The death benefits go directly to your beneficiaries.

In Texas, however, a Guaranteed Issue final expense insurance policy is more expensive, as more serious health conditions are accepted. However, your approval is guaranteed.

If death due to natural causes occurs within the first two years, your beneficiaries will receive all premiums paid plus interest (except for death by accident, which pays the full death benefit during the first two years).If you want to learn more about Guaranteed Issue insurance, we wrote about it in our final expense resource guide.

What You Can Expect from Texas Final Expense Insurance

Every policy is different, but in Texas most final expense policies cover everything from burial costs to funeral arrangements.

Final expense insurance can even cover probate expenses and medical bills leading up to death. 

With Final Expense Direct, your insurance rate will be determined by your age, sex, amount of protection needed, and overall health. 

The usual range for policies tend to be between $5,000 and $20,000

Is Final Expense Insurance Right for you:

It can be hard to know if final expense insurance is right for you so here are some things to consider: 

If you want to ensure your end-of-life expenses are taken care of and you don’t want to put a financial burden on your family, then Final expense insurance in Texas is a valuable option. 

Another reason to consider final expense insurance is that it provides a financial safety net to cover end-of-life expenses. 

If you get final expense insurance through Final Expense Direct, you can cover costs like funeral services or burial and cremation costs, reducing the burden on loved ones during what can already be a very stressful time. 

This type of insurance provides peace of mind, allowing you to plan funeral arrangements so life’s last journey can be less painful to your loved ones, because they won’t have to worry about expensive funeral and burial costs.

How do you Apply for Final Expense Insurance? 

  • Immediate Approval Over the Phone Today!
  • Speak to a Live Agent 
  • Just a Few Health Questions 

Most final expense companies require you to meet in person, with Final Expense Direct, you can apply over the phone!

With Final Expense Direct, our process is really simple.

First click on our quote tab

From there, you fill out basic information and then one of our insurance specialists will call you to walk you through the application and answer any questions you might have.


Final Expense Direct is trusted by many Texans, however, we find that some may not know what final expense insurance is. 

Here are some commonly asked questions about final expense insurance in Texas: 

Is Final Expense Insurance the Same as Life Insurance?

While they have similarities, final expense insurance and life insurance are very different.

Simply put, Final expense insurance is a form of whole life insurance sold in small quantities, typically between $5,000 to $25,000. 

This means you only pay for what you need and what matters to you. 

Most people that get final expense insurance tend to be aged 50 and older, are in poor health, and are on a strict budget. 

They don’t have other life insurance or savings to handle final expenses. Final expense policies don’t require a health exam and are easy to get approved for.

How Do You Get Approved for Final Expense Insurance? 

At Final Expense Direct, we do everything over the phone. There is no face-to-face meeting necessary. You will answer some basic health questions with your agent, and once your application is submitted you will receive an immediate approval over the phone.

This makes becoming insured very simple. Call us now to get started

How Much Does Final Expense Insurance Cost? 

Prices are dependent on four factors: your age, health, sex, and coverage amount. While prices vary, most policies range between $30-$75 a month. However, larger policies will have higher monthly premiums. 

To compare prices and see what you qualify for, Final Expense Direct has an entire price breakdown on our resource guide .

In What Ways Can You Use Final Expense Insurance?

Your beneficiary can use final expense insurance funds for any expense including funeral expenses, medical bills, financial support for loved ones, inheritance, estate taxes, and more.

How We Can Help

Final Expense Direct is located in Houston Texas so we know what Texans need and how to help them. 

If you want peace of mind for your burial expenses or if you just want to make sure your family does not have to feel a heavy financial burden when you die, then we can help! 

Our process is really easy and done over the phone so you never have to step foot in our office, or have an agent come to your home. Click here to learn more


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