How It Works

• You apply for a policy (often with minimal health requirements).
  
  
• You pay regular premiums for life.
  
  
• When you pass away, your beneficiaries receive a lump-sum payment to use for final expenses.

Advantages

• Easy to qualify for (even with health issues).
  
  
• Lifelong coverage with guaranteed death benefit.
  
  
• Small, manageable premiums.
  
  
• Relieves loved ones from the burden of paying funeral costs.

Drawbacks

• Low coverage amounts (not designed for income replacement).
  
  
• Higher cost per dollar of coverage compared to term life.
  
  
• May have a waiting period (e.g., 2 years) before full benefits are paid if death is from natural causes.

Best For

• Seniors who want to ensure funeral and burial costs are covered.
  
  
• People with health conditions who may not qualify for other life insurance.
  
  
• Anyone wanting a small, guaranteed payout to cover end-of-life expenses.

Policy Cost

• Monthly premiums for a $10,000 policy for a healthy 60-year-old woman typically fall between $40–$60/month.
  
  
• Some providers list average final expense policy costs between $30–$70/month, with older individuals or those with health issues potentially paying $70–$120/month.
  
  
• For younger adults (under 50), a $25,000 policy may cost around $29–$54/month.
  
  
• Example rates for coverage of $35,000 Final Expense Policy:
  
• Age 50: Men ~$125/month; Women ~$95/month
  
• Age 60: Men ~$174/month; Women ~$136/month
  
• Age 70: Men ~$263/month; Women ~$209/month
  
  
• Example rates for coverage of $10,000 Final Expense Policy:
  
• Age 40: Men ~$14–$25/month
  
• Age 50: Men ~$29–$60/month
  
• Age 60: Men ~$43–$174/month
  
• Age 70: Men ~$70–$263/month
  

Best Age to Buy

• The prime window is ages 50–65, when applicants are relatively healthy and premiums are more affordable.
  
  
• However, younger adults may benefit too:
  By age 40, a $25,000 final expense policy could cost only about $45/month, compared to nearly $100/month at age 65.
  
  
• Applications typically use simplified underwriting (health questions instead of exams), and waiting periods often apply for guaranteed-issue coverage.
  
  

Underwriting and Other Pricing Factors

Premiums are influenced by:

• Age — older applicants face higher rates.
  
  
• Gender — women generally enjoy lower premiums due to longer life expectancy.
  
  
• Health — even without exams, health questions or existing conditions affect pricing.
  
  
• Smoking Status — smokers pay significantly more (sometimes 50%+).
  
  
• Policy Type:
  
• Guaranteed Issue requires no health questions but costs the most and may have a waiting period.
  
• Simplified Issue gives better rates but needs some underwriting.
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• Coverage amount — premiums scale with the death benefit amount.