Top 3 Final Expense Terms You Should Know

With any insurance policy, you’ll see terms that pop up frequently. The terms are used as if they need no explanation, but you ought to know what they mean, as these final expense terms are integral to the policy. Once you become familiar, you’ll know exactly what to look for and how it can help you make the right decision.


Premiums are a feature of any insurance policy, no matter if it’s auto, health, or life insurance. They’re a necessity because your policy can come right out from under you if you ignore them.

Premiums are the monthly payments you make in order to retain your final expense insurance policy. As long as you pay them, your loved ones will receive the death benefit stated in your final expense policy.

Not all premiums are created equal – there are multiple factors that influence how much they cost. Your age and health primarily affect your monthly premiums. The younger and healthier you are, the cheaper your premiums will be. Conversely, your premiums will be much higher if you are closer to the maximum enrollment age (80 in most cases) and in poor physical health.


When you buy a final expense policy, you’re doing so with your beneficiaries in mind. Beneficiaries are your loved ones who will receive the death benefit after you pass away. 

There are different types of beneficiaries – namely primary and contingent. Primary beneficiaries receive the death benefit after submitting a death claim form to the insurance company.

Contingent beneficiaries are not guaranteed to receive the death benefit. Their inheritance is contingent upon a primary beneficiary being unavailable, be it due to death or an inability to be located when the funds are disbursed.

Naming beneficiaries makes the process much easier when it comes time for the insurance company to issue the death benefit. It eliminates all confusion.

Death benefit

The death benefit is the amount of money your beneficiaries will receive. With final expense insurance, this amount can be $2,000 all the way up to $50,000. However, the average is around $10,000 to $20,000.

Like the amount you will pay in premiums, your age and health are taken into account. Younger and healthier individuals qualify for larger death benefits than those who are older with serious health problems.

These funds are usually meant to go toward funeral costs, but their use is not contingent upon use for that purpose. The death benefit can be used for anything, even luxury purchases. It’s also not taxed, so your loved ones can enjoy the entirety of it.

Define your future

Final Expense Direct gives you the power to pick a final expense policy that takes care of the people you love. We help you every step of the way, so call us today at 1-877-674-0236.


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