Nobody likes to plan for the end of life, but the people you leave behind should not have to scramble to pay for it. Final expense insurance is a small whole life policy designed to cover funeral, burial, and other end-of-life costs. DGS Benefits has helped New Jersey families plan ahead for 35 years, and we explain everything in plain English.
What is final expense insurance?
Final expense insurance, sometimes called burial insurance, is a small permanent life insurance policy. When you pass away, it pays a death benefit to the person you choose. That person can use the money for the funeral, the burial or cremation, medical bills, or any other bills. It is meant to be simple, with smaller coverage amounts than a traditional life policy and a shorter application.
What does a funeral cost?
A traditional funeral with embalming, a ceremony, and burial can easily reach $10,000 or more once the cemetery costs and other items are added, and cremation often costs less. Families usually have to pay these costs quickly. Medicare does not pay for funerals.
How much coverage do you need?
Final expense policies commonly range from about $5,000 to $35,000, depending on the company, and are typically available to people from about age 50 to 85. A good starting point is the cost of the service you want plus any small debts you would like to cover. We will help you choose an amount that fits your budget instead of overselling you.
Simplified issue vs. guaranteed issue
There are two main types, and the difference matters:
- Simplified issue. You answer a few health questions, but there is no medical exam. It is generally the more affordable option, and coverage often begins once you are approved. If your answers show a serious health problem, you may be declined.
- Guaranteed issue. There are no health questions, and you cannot be turned down. These policies cost more for the coverage and often include a graded benefit. That means if you pass away from natural causes during the first few years, your family may receive a smaller payout or a refund of the premiums you paid.
Different companies treat the same health conditions differently, which is why we compare carriers before recommending one.
Who is final expense insurance for?
- Older adults who have not set money aside for funeral costs
- People who do not want to leave the burden to a spouse or child
- Anyone who cannot qualify for a traditional life insurance policy
- People with a modest estate who still want a plan
If you are younger and need a larger amount of protection for your family, life insurance is usually the better fit. We will tell you honestly which one makes sense.
What does it cost?
Your price depends on your age, health, tobacco use, and the amount of coverage. Premiums on whole life policies like these typically stay the same for as long as you keep the policy. We compare quotes from various carriers so you can see the real tradeoffs.
How to apply
- Talk with us. We learn about your health, your budget, and what you want covered.
- Compare. We look at quotes from various carriers.
- Apply. You can start your final expense application here.
- Review and decide. Most policies include a review period after delivery. Ask us about the details for your policy.
Planning ahead, more broadly
If you are 65 or older, see our page on Medicare Supplement plans and long-term care insurance so you are protected on the health side too.
Frequently asked questions
Do I need a medical exam?
No. Simplified issue uses health questions only, and guaranteed issue has neither an exam nor questions.
Can I be turned down?
With simplified issue, yes, if your health answers do not meet the company's rules. With guaranteed issue, no.
What is a graded benefit?
It is a waiting period on the full payout. If death occurs from natural causes during that period, the policy may pay only a refund of premiums, sometimes with interest, instead of the full amount.
Does the money have to be used for the funeral?
No. The beneficiary can use it however they choose.
Will Medicare pay for my funeral?
No. Medicare does not cover funeral costs.
Is a consultation really free?
Your first consultation is free. Contact us to get started.
DGS Benefits Inc. is a licensed insurance broker in the State of New Jersey. We do not offer every product available in your area.
Final expense policies have exclusions, limitations, and terms for keeping them in force, and are subject to underwriting approval. Guaranteed issue policies may pay a limited benefit during an initial period. Guarantees are backed by the claims-paying ability of the issuing company.
Funeral cost and coverage amount ranges are general estimates and vary. DGS Benefits does not provide tax or legal advice.