Final expense insurance is a type of whole life insurance designed to pay for the costs of a person’s funeral, memorial service, reception, cremation, and/or interment, according to the official definition. It’s also known as funeral insurance, cremation insurance, or burial insurance, depending on who you ask.
Even though it’s called a “insurance for final expenses,” recipients who get the death benefit are under no obligation to use it to cover such costs; instead, they are free to use it towards whatever they like. Final expenditure insurance is a type of modified whole life insurance or simplified issue life insurance, both of which are whole life policies with lower death payouts, often ranging from $2,000 to $20,000.
A number of questions about your age and health will be asked when you buy final expenditure insurance. For as long as you continue to pay your premiums, you will be covered.