Final Expense Insurance and other Insurance policies

How Does Final Expense Insurance Work with an Existing Policy?

Traditional life insurance and final expense insurance are not the same. However, it’s common to get confused about how they differ. You may wonder, do I need final expense insurance if I already have life insurance? In short, the answer is no. But there are some things to know about your life insurance policy to ensure that you’re covered.

Life Insurance Policy Type: Term vs. Permanent

Whether your life insurance will cover you at the end of your life depends on the type of plan you chose. Term policies and permanent (whole) policies are the two main kinds of life insurance plans.

Term Policy

A term policy is meant to protect you for a select period of time. You’re only covered for a “term” of 10, 20, or 30 years, depending on the policy. If the policyholder dies during the specified time period and the policy is in effect, a death benefit will be paid. 

After the term expires, you’re no longer covered, and your loved ones don’t get that amount as a death benefit.

Permanent Policy

On the contrary, a permanent policy covers you for your entire life. It’s more costly than a term policy, but it guarantees that you’re covered by traditional life insurance — at the end of your life. 

In other words, your life insurance may not cover you for final expenses if you have a term policy that ends before you pass away.

Unsure About Coverage? Here’s What You Can Do

If you’re unsure of whether or not you’re covered, read over your policy. Is it a term or a permanent policy? Determine this, and see if it restricts any end-of-life benefits. If you bought the insurance policy through an independent agent, you can contact your agent to talk about the details. The better you understand your policy, the easier it will be to plan for your loved ones’ financial future.

Related Post: What to Do Before Buying Final Expense Insurance

Final Expense Insurance Policies

A final expense policy is a perfect option for someone who can’t afford traditional life insurance OR doesn’t qualify.

Technically speaking, this policy would cover end-of-life costs if you had a term life policy that expired. However, if you qualify for and can afford life insurance, it’s better to get traditional life insurance — with a larger, permanent policy.  

Related Post: Final Expense Insurance Companies

                                                             LIFE INSURANCE

                                                                   /                     \                                                                  

                                               Term Policies               Permanent Policies

                                                                                      /            |           \

                                                                   Final Expense     Burial     Funeral

To Summarize

It can be confusing to set (traditional) life insurance apart from final expense insurance — because final expense insurance is a whole life policy! The main differences are the coverage amount, what the death benefit is used for, and how long it takes to get approved.  

Final expense insurance is cheaper and easier to qualify for. If you already have life insurance, you don’t need to buy a final expense policy. However, know that if you have a term policy, you might not be covered at the end of your life — should the policy expire. 

Get a FREE Quote from Final Expense Direct

Need help choosing a life insurance plan? We can provide you with a FREE quote. If you like it, you can get approved right over the phone. We assure you that we’ll find the best coverage for your needs — at affordable rates — in your area.


Final Expense Direct’s utmost concern is the safety of our clients, their families, and our employees and agents. Our hearts, thoughts, and prayers go out to all that the Coronavirus outbreak has touched and those whose lives have been disrupted. While 98% of our workforce is working remotely, we are here if you need assistance. If you are a client, please contact Customer Support at 800-538-3610, Ext 2, with any questions in regards to your policy. You may also contact us via email at We will continue to monitor this situation and keep you updated.