Weighing the Pros and Cons of Final Expense Insurance

Weighing the Pros and Cons of Final Expense Insurance

Final expense insurance is a small whole life policy with benefits that normally range from $3,000 to $50,000. It’s intended for people over 50 years of age and can be issued to individuals with different health conditions. Final expense policies are sold by independent insurance agents — like the ones at Final Expense Direct — representing companies such as  Americo, AIG, Mutual of Omaha, Transamerica, and more. 

Is final expense insurance worth it? Let’s weigh the pros and cons to find out.  

Pros of Final Expense Insurance Policies

Final expense insurance policies have many benefits:

Choose the Beneficiary

You name the beneficiary who gets the funds and fulfills your final wishes. You can also name secondary and tertiary beneficiaries.   

Funds Can Be Used for Any Expense

Besides funeral costs, the money can be used to pay outstanding bills or cover a big family celebration or event. Your beneficiary will have diversified options!

Accumulates Cash Value

A final expense policy builds cash value over time — through fixed, affordable monthly payments. And unlike term policies, the benefit doesn’t expire.  

Get Approved Quickly

Most final expense policies have a quick application process. We require no medical exam, and we make it as simple as possible. Plus, claims are paid quickly. 

Use the Policy as a Charitable Gift

You can also donate the funds to your church or a favorite charity — by assigning non-profit organizations and worthy causes as the beneficiary. OR, leave a cash gift for your spouse, children, or grandchildren. 

Proceeds Are Tax-Free

You can borrow against the policy’s cash value, and proceeds from insurance are tax-free to your beneficiaries.

Related Post: Common Questions About Final Expense Insurance

Cons of Final Expense Insurance

There are a few cons you should be aware of:

Funeral Costs Are on the Rise

Funeral costs will keep increasing and a final expense policy doesn’t “lock-in” today’s prices at a funeral home.

You Depend on the Beneficiary

Choose your beneficiary wisely because you rely on him or her to execute your funeral plans. Spell out your last wishes so they understand them.

Certain Illnesses Will Cause Higher Premiums

While pre-existing conditions are OK, having a certain illness or medical condition means that you’ll pay more in premiums.

Smaller than Other Life Insurance

Since it pays a fixed amount, depending on when the insured passes away, the policy may not cover ALL funeral costs.

Other Things to Know and Consider

  • Have an idea of your funeral plans before you shop around for insurance quotes. 
  • Are your friends or family available to carry out your final wishes? Make sure of it.
  • Do you plan to stay in your current area or more to another city in the future? If so, final expense insurance will give you and your family flexibility. And guaranteed coverage!
  • Those who have been diagnosed with a terminal illness are able to buy pre-need insurance — policies that name the funeral home as the beneficiary. This is different from final expense insurance.

Related Post: Final Expense Insurance vs. Pre-Need Insurance

What do you think? Do the pros outweigh the cons?

Choose Final Expense Direct

If you’re hesitant about final expense insurance, we’re here to answer your questions. And, we can help you get coverage for your needs. Final Expense Direct has over 30 years of industry experience. Contact us online or call 1-877-674-0236. 


  • Get quotes FAST
  • More affordable than you think
  • Compare quotes from top companies
  • Know what you qualify for before you buy!
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