final expense insurance can help you cover funeral costs

Your Options When Paying for a Funeral

In the U.S., the average funeral can cost around $7,000 up to $20,000. These are general estimates, but getting a ballpark number will help you start the planning process. While thinking about your funeral can create uneasy feelings, it never hurts to be prepared. You also don’t want to leave the responsibility to your loved ones. Final Expense Direct shares important information about funeral costs, and we explain the options for paying for your funeral. 

Rural vs. Metropolitan Areas

Where you live often dictates how much you have to pay for your final expenses. For example, funerals are much more affordable in rural areas than in large metropolitan areas.

Explaining Funeral Costs

Many things contribute to the overall cost of a funeral. It involves many procedures, ceremonies, and activities that increase the expenses needed to cover them. For example, it costs money to transport a body from the death place to a morgue or hospital, and then to a funeral home. 

The embalming (body preparation) process costs money, and so does the following:

  • Wake
  • Service
  • Flowers
  • Internment
  • Headstone

The funeral consists of many procedures and processes that somebody must fund.   

One Option Is Life Insurance

The typical life insurance policy is as much as $500,000. When you have a policy, you agree to pay a predetermined amount of premium for years. You might name beneficiaries to get payouts from your coverage if something were to happen to you. Also, you can state in the policy or assign a beneficiary directly to cover your funeral costs.   

A Better Option Is Final Expense Insurance

Final expense insurance is a basic form of a life insurance policy. The average policy hardly eclipses $25,000, and more expensive plans require higher premiums. As the name indicates, a final expense policy is most often used for paying final expenses, or any anticipated unpaid bills. You may name a beneficiary who will make sure that all your funeral costs are fully covered.  

Funeral Home Prepayment Plans

You can choose the funeral home, and you can pay them for the funeral expenses before you pass away. You just need to coordinate the arrangements with the funeral home. They’ll let you pay in full, or you can set up regular payments.  

However, don’t suggest prepaying unless you have to do it to qualify for Medicaid and/or you don’t plan to move in the future. A refund policy is unlikely, and the funeral home is not obligated to expand your prepayment structure beyond its facility to your new home.  

How Does Prepayment Work?

If you take this route, a funeral home gets paid in one of three ways to perform the service before your funeral:

  • Cash
  • Insurance payout, or
  • Prearranged payment plan

When Is the Best Time to Pay? 

So, should you pay for a funeral before or after the service? Some will tell you to make your final expense arrangements as early as possible, which includes payment. Others will warn against prepaying because you could move.  

Many funeral homes (but not all) will accept prepayment before a memorial service is held. It can be risky to assume funeral costs can be paid after the service. Nevertheless, there are pros and cons to prepaying, and these should be considered.   

It’s Up to You

You’re ultimately responsible for planning your funeral arrangements, including how and when you pay. It can be difficult to find a funeral home that will wait for compensation after the service.

Choose Final Expense Direct

Now that you know your options, choose an insurance policy that offers peace of mind. When you call us, we can help you decide on a plan and even get you approved quickly. Call 1 (877) 674-0236 to speak with an agent at Final Expense Direct.     


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.