Best Final Expense Insurance Guide [Updated for 2025]

Planning for the future involves considering all aspects of life, including the end. While it’s not a comfortable topic, ensuring your final expenses are covered can provide immense peace of mind for you and protect your loved ones from unexpected financial burdens during a difficult time. Funeral costs, outstanding medical bills, and other debts can add up quickly. This is where final expense insurance, often called burial insurance, comes in. But with so many options available, how do you find the best final expense insurance policy for your unique situation?

This guide, updated for 2025, will walk you through everything you need to know about funeral and final expense insurance. We’ll cover the types of policies available, factors affecting cost, how to find affordable final expense insurance, and why working with an independent agency is crucial. Here at Insurance By Heroes, founded by a former first responder and military spouse, we understand the importance of protection and service. Our team, many with public service backgrounds themselves, specializes in helping individuals navigate the insurance landscape. Because we’re independent, we work with dozens of top-rated carriers, allowing us to shop the market and find the coverage that truly fits your needs and budget, not just push one company’s product.

What Exactly is Final Expense Insurance?

Final expense insurance is a specific type of whole life insurance policy designed primarily to cover end-of-life costs. Think of it as a financial safety net specifically for expenses like:

• Funeral and burial or cremation costs
• Cemetery plots or urns
• Headstones or grave markers
• Funeral service expenses (viewing, memorial service, transportation)
• Outstanding medical bills
• Legal or administrative fees (settling an estate)
• Credit card debt or small loans
• Everyday living expenses for a surviving spouse or partner

Unlike term life insurance, which covers you for a specific period, final expense insurance is typically a form of whole life insurance. This means:

• Lifelong Coverage: As long as you pay the premiums, the policy remains in force for your entire life. It doesn’t expire after a certain number of years.
• Level Premiums: Your premium payments are generally fixed and will not increase over time due to age or changes in health. This makes budgeting easier.
• Cash Value Accumulation: Like traditional whole life, these policies build cash value over time on a tax-deferred basis. You may be able to borrow against this cash value or surrender the policy for its cash value if needed (though doing so will reduce or eliminate the death benefit).
• Smaller Death Benefits: Final expense policies typically offer lower coverage amounts compared to traditional life insurance policies, often ranging from $5,000 to $50,000. This aligns with the goal of covering specific end-of-life costs rather than providing large-scale income replacement.
• Simplified Underwriting: Many final expense policies feature simplified underwriting, meaning you usually only need to answer some health questions, and often no medical exam is required. This makes it more accessible for seniors or individuals with pre-existing health conditions who might struggle to qualify for traditional life insurance.

It’s important to understand that while people often search for “funeral insurance,” the policy itself is a life insurance contract. The death benefit is paid directly to your named beneficiary, who can then use the funds for any purpose they choose, including covering funeral and final expenses. They are not legally obligated to use it solely for the funeral, offering flexibility.

Why is Considering Final Expense Insurance So Important?

The peace of mind that comes from knowing your final affairs won’t burden your family financially is invaluable. But there are several practical reasons why securing the best insurance for final expenses is a wise decision:

Rising Funeral Costs

The cost of dying has steadily increased over the years. According to the National Funeral Directors Association (NFDA), the median cost of a funeral with a viewing and burial is well over $8,000, and this doesn’t always include the cemetery plot, headstone, or other related expenses. Cremation costs are typically lower but can still run into thousands of dollars. These costs can place a significant and immediate strain on grieving families who may not have readily available funds.

Protecting Loved Ones from Debt

Beyond funeral costs, many people leave behind outstanding medical bills, credit card balances, or other small debts. A final expense policy ensures that these obligations can be settled without dipping into family savings or assets intended for other purposes.

Accessibility for Seniors and Those with Health Issues

As mentioned, final expense insurance often features simplified or even guaranteed issue underwriting. This means individuals who might be declined for traditional life insurance due to age or health conditions can often still qualify for coverage. This makes it a viable option for ensuring *some* level of protection is in place.

Ensuring Your Wishes are Honored

Having dedicated funds available means your family is better equipped to carry out your final wishes regarding your funeral or memorial service, without having to compromise due to cost concerns.

Supplementing Existing Coverage

Even if you have a larger life insurance policy, a dedicated final expense policy ensures that funds are quickly available for immediate needs without having to wait for a larger payout or use funds earmarked for long-term family support.

At Insurance By Heroes, we frequently speak with individuals who are looking for ways to protect their families. Our background in service professions gives us a deep appreciation for planning and preparedness. We understand that finding the right safety net is personal, and that’s why comparing options from multiple carriers is essential to finding the lowest cost final expense insurance that still provides reliable coverage.

Understanding the Types of Final Expense Insurance Policies

Not all final expense policies are created equal. The primary difference lies in the underwriting process (how the insurance company assesses your health risk) and when the full death benefit becomes payable. Understanding these types of final expense insurance is key to selecting the right one:

1. Level Benefit (Simplified Issue) Final Expense Insurance

• How it works: Requires applicants to answer several health questions (but typically no medical exam). Questions cover major health conditions like recent heart attacks, strokes, cancer treatment, terminal illnesses, etc.
• Coverage: Provides the full death benefit from day one the policy is in effect.
• Premiums: Offers the lowest premiums among final expense options because the insurer takes on less risk due to health screening.
• Best for: Individuals in reasonably good health who can answer “no” to the significant health questions. This is often considered the best final expense life insurance option if you qualify.

2. Graded Benefit Final Expense Insurance

• How it works: Also uses simplified issue underwriting (health questions, no exam), but accepts individuals with some moderate, managed health conditions who might not qualify for a level benefit policy.
• Coverage: The death benefit is “graded” for the first few years (typically 1-3 years, varying by policy). If death occurs due to natural causes during this graded period, the beneficiary usually receives a return of the premiums paid, often plus some interest (e.g., 10%). After the graded period, the full death benefit is payable. Accidental death often pays the full benefit from day one.
• Premiums: Higher than level benefit policies due to the increased risk the insurer takes on.
• Best for: Individuals with certain chronic but managed health conditions (like well-controlled diabetes, past heart issues, etc.) who don’t qualify for level benefit coverage.

3. Guaranteed Issue (GI) Final Expense Insurance

• How it works: No health questions asked and no medical exam required. Acceptance is guaranteed within a specific age range (e.g., 50-85).
• Coverage: Always has a graded death benefit, typically for the first 2 or 3 years. If non-accidental death occurs during this period, beneficiaries receive a return of premiums plus interest (commonly 10%). After the waiting period, the full death benefit is paid. Accidental death usually pays the full amount immediately.
• Premiums: The highest premiums because the insurer accepts applicants regardless of health status, taking on the most risk.
• Best for: Individuals with serious health conditions who cannot qualify for level or graded benefit policies. It’s often the last resort for securing some coverage. Finding cheap final expense life insurance in this category is relative; it will be more expensive than other types.

Which type is right for you? It depends entirely on your health profile. This is a prime example of why working with an independent agency like Insurance By Heroes is so advantageous. We have access to policies from numerous carriers, each with slightly different underwriting guidelines and “sweet spots” for specific health conditions. Some carriers might offer a level benefit policy for a condition that another carrier would only cover with a graded benefit (or decline altogether). We can compare these nuances across the market to find the absolute best final expense policies and rates you qualify for, whether that’s level, graded, or guaranteed issue.

Finding the Best Final Expense Insurance for Your Needs

The phrase “best final expense insurance” is subjective. The policy that’s best for your neighbor might not be the best for you. The optimal choice depends on a combination of factors specific to your situation:

• Your Health: As discussed, your health status is the biggest determinant of which policy type (Level, Graded, GI) you qualify for and, consequently, the premium you’ll pay. Honesty on the application is crucial.
• Your Age: The younger you are when you purchase the policy, the lower your premiums will generally be. Rates are based on your age at the time of application and are then locked in.
• Coverage Amount Needed: Accurately estimate your final expenses. Consider funeral costs in your area, potential medical bills, and any small debts you want covered. Aim for a realistic amount – buying too much coverage increases premiums unnecessarily.
• Your Budget: Determine how much you can comfortably afford to pay in premiums each month or year. Remember, these are typically level premiums for life.
• Carrier Reputation and Financial Strength: Choose an insurer with a strong track record of paying claims and solid financial ratings (e.g., A.M. Best, S&P).

Trying to determine the single “best” option by yourself can be overwhelming. You might get a quote from one company offering a graded benefit, unaware that another reputable carrier might offer you a level benefit policy with immediate coverage and lower premiums based on your specific health answers. This is the core value proposition of Insurance By Heroes. We don’t just represent one company; we represent *you*. Our team leverages relationships with dozens of carriers to compare underwriting rules and pricing side-by-side. We find the company that views your health profile most favorably, potentially saving you money and securing better coverage terms. Our commitment, rooted in our public service backgrounds, is to find the genuinely best insurance for final expenses tailored precisely to you.

Strategies for Securing Low Cost and Affordable Final Expense Insurance

While final expense insurance is generally more accessible than traditional policies, everyone wants to find the most affordable option that still meets their needs. Here’s how to maximize your chances of getting low cost final expense insurance or even the cheapest final expense insurance you qualify for:

• Apply Sooner Rather Than Later: Age is a primary factor in life insurance pricing. Premiums increase as you get older. Locking in a rate when you are younger and potentially healthier almost always results in lower long-term costs.
• Compare Quotes from Multiple Carriers: This is arguably the most critical step. Prices for the *exact same* coverage amount and policy type can vary significantly between insurance companies. Each insurer has its own underwriting guidelines and pricing models. Never assume the first quote you get is the best.
  • *This is where Insurance By Heroes shines. We do the comparison shopping for you across numerous highly-rated companies, saving you time and potentially significant money. We identify which carriers offer the most competitive rates for your specific age and health profile.*
• Be Honest About Your Health: While it might seem tempting to omit health details to get a lower rate, this can lead to application denial or, worse, denial of a claim later if misrepresentation is discovered (usually within the first two years, known as the contestability period). Honesty allows an agent to place you with the right type of policy (Level, Graded, GI) from the start, ensuring the coverage is secure. Qualifying for a Level Benefit policy is the best way to get the lowest cost final expense insurance.
• Choose the Right Coverage Amount: Get quotes for several different coverage amounts (e.g., $10,000, $15,000, $25,000) to see how the premium changes. Select an amount that covers your estimated needs without being excessive.
• Consider Payment Frequency: Sometimes, paying annually results in a slightly lower overall cost compared to paying monthly, although monthly payments are often easier to budget. Ask about payment options.
• Work with an Independent Agent/Agency: Captive agents only represent one company and can only offer that company’s products. An independent agency like Insurance By Heroes works with many carriers. We have no incentive to push one company over another; our goal is to find the best fit for *you*, comparing options to find truly affordable final expense insurance.

Remember, the “cheapest” policy isn’t always the “best.” A Guaranteed Issue policy might seem cheap initially if you only look at the lowest possible face amount, but it comes with a waiting period and higher cost per thousand dollars of coverage compared to a Level Benefit policy you might qualify for elsewhere. True value lies in getting the right type of coverage with the best possible rate *for your situation*, which requires comparing offers diligently – a service Insurance By Heroes provides.

Comparing Final Expense Carriers: Oxford, Great Western, Prosperity, Progressive & More

When searching for final expense options, you might come across names like Oxford Life, Great Western Insurance Company, Prosperity Life Group, or even larger companies like Progressive offering life insurance products through partners. Each carrier has its own strengths, target markets, and specific policy features.

Oxford Final Expense (Oxford Life Insurance Company)

Oxford Life often features competitive rates, particularly for certain age bands and health profiles. They typically offer simplified issue whole life policies designed for final expense needs. Like all carriers, their underwriting guidelines are specific. An applicant who qualifies for their best rates might only qualify for a graded policy or be declined elsewhere, and vice versa. Finding competitive Oxford final expense options requires comparing them against other market players.

Why Comparison is Key: While Oxford might be a strong contender, they may not be the most competitive for *your specific* age, health condition, or desired coverage amount. Insurance By Heroes includes Oxford Life in our comparisons but also evaluates dozens of others to ensure you see how they stack up for *you*. No single company, including Oxford, is the best fit for everyone.

Great Western Final Expense (Great Western Insurance Company)

Great Western is another company known for its focus on the senior market and final expense products. They often have unique offerings, sometimes including guaranteed issue options or policies designed for specific niches. They might be particularly competitive for certain health impairments.

Why Comparison is Key: Great Western’s strengths might lie in specific areas, but their pricing or underwriting for *your* profile might be less favorable than another carrier’s. Perhaps their graded period is longer, or their rates for a level policy are higher for your age group. Only by comparing Great Western final expense quotes with others can you determine if they offer the best value for your circumstances. This is precisely what Insurance By Heroes does.

Prosperity Final Expense (Prosperity Life Group)

Prosperity Life Group encompasses several insurance companies and often offers a range of final expense solutions, including simplified issue and potentially guaranteed issue products. They aim to provide straightforward options for seniors planning for end-of-life costs.

Why Comparison is Key: As with others, Prosperity final expense policies have specific underwriting criteria and rate structures. They might excel for certain health conditions or age brackets but be less competitive in others. Insurance By Heroes analyzes Prosperity’s offerings alongside many other carriers to identify the optimal match based on individual client needs and qualifications.

Progressive Final Expense Insurance

Progressive, widely known for auto insurance, also offers life insurance products, often through partnerships with other life insurance carriers. Their final expense options are typically provided by one of these partners.

Why Comparison is Key: When you get a quote for Progressive final expense insurance, you’re likely getting a quote from the underlying carrier they partner with (e.g., Fidelity Life, Protective). The rates and policy features are determined by that partner company. An independent agency like Insurance By Heroes can compare the *actual* underlying carrier’s direct rates (and those of many other companies) against what’s offered through the Progressive platform, ensuring you aren’t potentially paying more for the same coverage available elsewhere. We shop the direct carriers to find the best value, regardless of branding partnerships.

The Critical Role of Independent Comparison

The key takeaway regarding specific carriers is this: **No single insurance company consistently offers the best rates or policy for every single person.** Underwriting niches, pricing algorithms, and product features vary significantly. One company might offer a level benefit policy to someone with controlled diabetes, while another might only offer a more expensive graded benefit policy for the same condition. One might have lower rates for non-smokers aged 60-65, while another is more competitive for those aged 70-75.

This is why partnering with Insurance By Heroes is so valuable. Our independence is your advantage. We aren’t tied to Oxford, Great Western, Prosperity, Progressive’s partners, or any single carrier. We have access to quote and compare policies from dozens of the nation’s top final expense insurers. Our licensed professionals understand the nuances of each company’s underwriting and pricing. We take your unique health profile and needs and systematically shop the market to find the carrier that offers the most suitable coverage (Level, Graded, or GI) at the most competitive premium available to you. Our public service background drives our commitment to finding the genuinely best final expense insurance solution, tailored specifically for you.

The Insurance By Heroes Advantage: Service, Trust, and Choice

Choosing the right insurance policy is about more than just price; it’s about trust and ensuring you have the right protection when it matters most. At Insurance By Heroes, our foundation sets us apart.

• Founded on Service: Our agency was established by a former first responder and military spouse. Many on our team share similar backgrounds in public service. This instills a deep understanding of duty, protection, and the importance of looking out for others – principles we bring to every client interaction.
• Independent Advocacy: We work for YOU, not for an insurance company. Our independence allows us to access and compare policies from dozens of different carriers, ensuring you see a wide range of options and aren’t limited to a single company’s offerings.
• Tailored Solutions: We know that insurance isn’t one-size-fits-all. We take the time to understand your specific needs, health situation, and budget. Then, we leverage our market access to find the policy – whether it’s level, graded, or guaranteed issue – that provides the best combination of coverage and value for *you*.
• Expert Guidance: Our licensed professionals are knowledgeable about the complexities of final expense insurance, including varying underwriting guidelines across carriers. We explain your options clearly, answer your questions honestly, and help you make an informed decision.
• Shopping the Market Effectively: We use technology and industry knowledge to efficiently compare rates and policy features from numerous reputable insurers, including names like Oxford, Great Western, Prosperity, and many others, finding the lowest cost final expense insurance you qualify for.

We believe our background in service gives us a unique perspective on protecting families. We’re committed to providing honest advice and finding practical, affordable solutions for your final expense needs.

Common Questions About Final Expense Insurance (FAQ)

Frequently Asked Questions About Final Expense Insurance

Is a medical exam required to get final expense insurance?

Generally, no. Most final expense policies use simplified underwriting, which involves answering health questions on the application but does not typically require a physical medical exam or blood/urine samples. Guaranteed Issue policies require no health questions or exam at all.

Can I be denied coverage for final expense insurance?

Yes, it’s possible to be denied for Level Benefit and Graded Benefit policies if your answers to the health questions indicate serious or recent major health conditions (like terminal illness, recent stroke/heart attack, current cancer treatment, etc.). However, Guaranteed Issue policies guarantee acceptance regardless of health, although they come with higher premiums and a waiting period for the full benefit.

Does the death benefit decrease over time?

For standard Level Benefit final expense whole life policies, the death benefit amount is fixed and does not decrease over time. For Graded Benefit and Guaranteed Issue policies, the full benefit is not payable for non-accidental death during the initial waiting period (usually 1-3 years), but after that period, the full stated benefit amount is payable.

Can I borrow against my final expense policy?

Yes, because final expense insurance is typically a form of whole life insurance, it builds cash value over time. Policyholders can usually take out loans against this cash value. However, outstanding loans will reduce the death benefit paid to beneficiaries if not repaid before death.

What expenses can the death benefit payout be used for?

The death benefit is paid directly to your named beneficiary(ies) as a lump sum (usually tax-free). They can use the money for any purpose they choose. While the intention is often to cover funeral and final expenses, there are no legal restrictions forcing them to use it solely for that. They can use it for medical bills, debts, living expenses, or anything else.

Is final expense insurance the same thing as burial insurance?

Yes, the terms “final expense insurance” and “burial insurance” are often used interchangeably to refer to the same type of policy: a whole life insurance policy with a smaller death benefit designed to cover end-of-life costs.

What happens if I stop paying premiums?

If you stop paying premiums, the policy will eventually lapse. Depending on how long the policy was in force and its specific terms, there might be some cash surrender value available, or options for reduced paid-up insurance. However, lapsing the policy means your beneficiaries will not receive the intended death benefit.

Take the Next Step: Secure Your Peace of Mind Today

Planning for final expenses is a responsible and loving act that protects your family from financial hardship during an already emotional time. Final expense insurance offers a practical, accessible way to cover these costs, ensuring your wishes can be honored without burdening others.

However, navigating the myriad of policy types (Level, Graded, Guaranteed Issue) and the varying prices and underwriting rules across dozens of carriers can be complex. Finding the truly best final expense insurance – the one that offers the right coverage at the most affordable rate for your specific health and age – requires careful comparison.

This is where Insurance By Heroes can make all the difference. As an independent agency founded on principles of service and protection, we are dedicated to helping you find the optimal solution. We shop the market extensively, comparing offers from numerous top-rated carriers like Oxford Life, Great Western, Prosperity Life Group, and many others, to find the lowest cost and best final expense policies you qualify for.

Don’t leave your loved ones guessing or facing unexpected bills. Take control and gain peace of mind today.

Ready to find out how affordable protecting your family can be? Get your free, personalized final expense insurance quote from Insurance By Heroes now. Simply fill out the short quote form on this page. Our experienced, service-minded team will compare options from across the market and contact you to discuss the best solutions tailored specifically for you. There’s no obligation, just clear answers and expert guidance.