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Understanding the Many Ways a Final Expense Insurance Policy Can Help Your Family

Apr 02, 2019

By wbourland

1. Understanding the Many Ways a Final Expense Insurance Policy Can Help Your FamilyHow much do you know about Final Expense coverage?

Some people aren’t even aware it exists.

Others assume the proceeds from this type of insurance policy are strictly for costs related to the end of someone’s life.

Final Expense can indeed pay for a policyholder’s cremation, funeral or burial. it can also cover transportation costs to get family members to a loved one’s memorial service.

However, it can provide much more.

It’s life insurance

A Final Expense policy is a type of life insurance.

Therefore, it can help with any outstanding debt you may leave behind, such as a mortgage or credit card balance.

What if you are approaching or in retirement, own your home and vehicles, and are free of credit card debt? Even then, Final Expense coverage can be useful.

Policy benefits may go to your surviving spouse as income replacement.

If you are the primary – or only – wage earner, this can help them maintain their standard of living.

Another option is to put the money in a college fund for your children or grandchildren.

Medicare is limited

If you are a Medicare beneficiary, you may be aware it only pays for skilled care practitioners, facilities and services.

Have you thought about what would happen if you became seriously ill or injured? Could you manage the cost of procedures or services Medicare does not cover?

A Final Expense policy can help in these situations, too.

Remember, it is a type of life insurance, so you choose where the benefits go.

You can even leave the proceeds to a charitable cause you support.  

Final Expense coverage and funerals

If you are not sure you need insurance for end-of-life expenses, ask yourself these questions:

  • Do I know the cost of memorial services, funeral arrangements, and cremation?
  • Has anyone close to me passed away? What was their situation?
  • How would I feel if died tomorrow and my loved ones could not pay for my burial?


Many people have learned the hard way that funerals can be expensive. Charges for a casket alone can top $10,000.

In order to help consumers make informed decisions, the Federal Trade Commission has put information on its website about funeral fees and the cost of services and merchandise. There is also a helpful pricing checklist.

It is important to educate yourself on these topics before you need the knowledge.

Once you die, grieving family members and other decision-makers may find it difficult to think clearly and objectively.

Settling your affairs

Most people do not make their own final arrangements, because it means focusing on their own mortality.

This makes the following sad scenario a real possibility:

Immediately after your passing, your loved ones are huddled outside your hospital room (or bedroom, if you were receiving home care). They are frantically trying to figure out what you would have wanted them to do – and who is going to pay for it.

You can avoid this situation by discussing Final Expense coverage with a licensed representative. AmeriLife can help.

Since benefits are generally $20,000 or less, the premium amount is usually lower than it would be for a standard life insurance policy.

Yet by obtaining this coverage, your final gift to your family is relieving them of some of their financial burden during an already stressful time.

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