Final Expense Insurance vs Life Insurance. What’s the Difference?

Sep 12, 2021 | Burial Insurance | 0 comments

Did you know that the average cost of an American funeral is over seven thousand dollars? Many families may find this expense difficult to afford, especially if they have to pay thousands of dollars at once to hour a loved one’s final wishes. Enter life insurance and final expense insurance.

These types of options are great if you want to leave some money for your next of kin that they can use for your funeral and burial. Want to learn more? Here is a great explanation, the perks, and the difference between the types of policies.

What is Final Expense Insurance?

Final expense insurance, also known as burial insurance, is a policy geared specifically towards funeral expenses. Generally, the amount is lower than your typical life insurance policy. The recipients should still have enough to cover all of your burial costs.

If you do not have a life insurance policy, then you should consider taking out a final expense insurance plan. You won’t have to jump through as many hoops to get your funeral expenses sorted out.


One of the biggest perks of final expense insurance is a set amount for your loved ones while planning a funeral. The insurance can heavily offset the cost of a funeral, so that they can focus on honoring you and your final wishes.

In addition, if your insurance has a cash value, you can borrow from it during your lifetime if needed. This is a great option if you do not want to take out a high-interest loan or put money on credit cards.

Final Expense Insurance vs. Life Insurance

When you think of someone dying, life insurance generally comes to mind. Life insurance is a certain amount of money allocated to beneficiaries after the policyholder passes away. There are little to no restrictions on how the beneficiaries can use the life insurance money.

The cost of life insurance depends on whether or not it is term or permanent. You may also have to get a medical examination for the type of policy you want.

Unlike life insurance, it can specifically go toward funeral and burial expenses. If your beneficiary is irresponsible with money, then this may be a better option to ensure you get the funeral you want.

Although it does cost more than general life insurance, it does not have as rigorous a screening process. You usually are not required to have a medical exam.

Consider Final Expense Insurance

When you pass away, your loved ones should not have to burden paying for a funeral. With final expense insurance, you can ensure that you have coverage for any unforeseen bill or invoice that comes your way.

Would you like more information on life and burial insurance? Check out our site today, or contact us with any questions you may have.

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