By Roberto Gomes, Prime Capital Report | Updated October 2026
Disclosure: The author is not a licensed insurance agent. This guide is general information, not insurance or financial advice. Prices below are averages or samples from the sources named; your own quote will depend on your age, health, state and insurer.
Final expense insurance, also sold as burial insurance, is a small whole life policy meant to pay for a funeral and end-of-life bills so your family doesn’t have to. Coverage typically runs from $1,000 to $25,000, and most policies are open to people 45 and older without a medical exam (NerdWallet, updated Oct. 9, 2026).
The need is real: the national median cost of a funeral with viewing and burial was $8,300 in the latest National Funeral Directors Association study, and $9,995 with a burial vault (NFDA). But final expense coverage is expensive per dollar, and for some seniors a savings account or a small term policy does the job for less. This guide shows what it costs by age, how it compares with term life, and how to tell if it’s worth it for you.
Key takeaways
- What it covers: a cash death benefit your beneficiary can spend on anything: the funeral, medical bills, debts. It’s usually a small whole life policy, so premiums and the benefit don’t change.
- Cost by age: for $10,000 of guaranteed issue coverage, average premiums were $40 a month for a 50-year-old man, $57 at 60, $87 at 70 and $157 at 80; women paid $30, $43, $64 and $127 (NerdWallet, Choice Mutual data valid Sept. 10, 2026).
- Watch the waiting period: most guaranteed issue policies have a two- to three-year waiting period for deaths from natural causes.
- Do the math: at $87 a month, a 70-year-old man pays more in premiums than a $10,000 benefit after about 9.6 years (our calculation). CDC data shows a 65-year-old man lives 18.4 more years on average (CDC).
- Healthy and in your 50s or 60s? NerdWallet notes that term life may be cheaper if you’re willing to take a medical exam.
What is final expense insurance?
“Burial insurance isn’t actually a policy — it’s a marketing term,” NerdWallet explains. It’s a small whole life policy, usually sold to older buyers, that pays a lump sum to the beneficiary you name. There are no restrictions on how the money is used, and life insurance proceeds usually don’t go through probate, so the money can arrive faster than funds left in an estate.
It’s different from pre-need funeral insurance, which you typically buy through a funeral home to prepay a specific funeral; that payout usually goes directly to the funeral home (NerdWallet).
Simplified issue vs. guaranteed issue
| Feature | Simplified issue | Guaranteed issue |
|---|---|---|
| Health questions | A short questionnaire; serious conditions can disqualify you | None |
| Medical exam | No | No |
| Price | Lower | Higher, to offset unknown risk |
| Waiting period | Some policies have none if you qualify | Usually two to three years for natural-cause deaths |
| Typical buyer | Seniors in fair to good health | People with serious health conditions or declined elsewhere |
Source: NerdWallet. NerdWallet lists using a wheelchair, living in a nursing home, or having cancer, diabetes or heart disease as answers that may lead to a simplified issue denial. Our no-medical-exam life insurance guide covers both types in more depth.
How much do funerals cost?
Start with the bill you’re trying to cover. NFDA’s 2023 General Price List Study, its most recent, surveyed member funeral homes (809 responses; margin of error +/- 3.4%):
| Item (national median) | 2023 | 2021 | Change |
|---|---|---|---|
| Funeral with viewing and burial | $8,300 | $7,848 | +5.8% |
| Burial vault | $1,695 | $1,572 | +7.8% |
| Total with vault | $9,995 | $9,420 | +6.1% |
| Funeral with viewing and cremation | $6,280 | $5,810 | +8.1% |
| Metal burial casket (included above) | $2,500 | $2,500 | 0.0% |
Source: NFDA 2023 General Price List Study. These medians exclude cemetery plots, interment, monuments or markers, and cash-advance items such as flowers and obituaries.
Cremation is now the majority choice: NFDA projected a 2025 cremation rate of 63.4% and a burial rate of 31.6% (NFDA statistics). If you plan cremation, you may need less coverage.
Public benefits won’t close the gap. Social Security’s lump-sum death payment is a one-time $255, paid to an eligible spouse or child (SSA Handbook §428).
Final expense insurance cost by age
NerdWallet published sample monthly premiums for guaranteed issue whole life, averaging the three lowest rates at each age from Choice Mutual (valid Sept. 10, 2026):
| Age | Men $10,000 | Men $15,000 | Men $20,000 | Women $10,000 | Women $15,000 | Women $20,000 |
|---|---|---|---|---|---|---|
| 50 | $40 | $60 | $79 | $30 | $45 | $60 |
| 60 | $57 | $85 | $113 | $43 | $64 | $84 |
| 70 | $87 | $130 | $172 | $64 | $95 | $127 |
| 80 | $157 | $235 | $313 | $127 | $190 | $253 |
Source: NerdWallet. Simplified issue policies, for people who can answer health questions, are generally cheaper than these guaranteed issue samples.
Two patterns stand out. First, waiting is expensive: a man’s $10,000 premium nearly doubles from 70 to 80. Second, coverage scales almost linearly, so buying $20,000 instead of $10,000 roughly doubles the bill.
When premiums overtake the payout
Because premiums are fixed for life, a long-lived policyholder can pay in more than the policy pays out. Dividing the $10,000 death benefit by the monthly premiums above (our calculation):
| Age at purchase | Men: years until premiums exceed $10,000 | Women: years until premiums exceed $10,000 |
|---|---|---|
| 50 | 20.8 | 27.8 |
| 60 | 14.6 | 19.4 |
| 70 | 9.6 | 13.0 |
| 80 | 5.3 | 6.6 |
For context, CDC’s latest data shows life expectancy at age 65 of 18.4 more years for men and 20.8 for women (CDC FastStats, from “Mortality in the United States, 2024”). That doesn’t make the policy a bad deal; it buys certainty for your family if you die early. But if you have the discipline to save the same amount, compare the two paths before you sign.
How much coverage do you need?
Work backward from the funeral you’d choose. Using NFDA’s medians and NerdWallet’s guaranteed issue prices for a 70-year-old (our pairing of the two sources):
| Plan | Funeral home median (NFDA 2023) | Coverage that would cover it | Monthly premium at 70, men / women |
|---|---|---|---|
| Funeral with viewing and cremation | $6,280 | $10,000 | $87 / $64 |
| Funeral with viewing and burial, with vault | $9,995 | $15,000 (leaves room for cemetery costs, which NFDA’s median excludes) | $130 / $95 |
| Burial plus other final bills | $9,995 + extras | $20,000 | $172 / $127 |
Each extra $5,000 of guaranteed issue coverage adds roughly $40 to $45 a month for a 70-year-old man in NerdWallet’s sample, so buy the amount you actually need. If your family will also face medical bills or small debts, add those, and subtract any savings you’ve set aside.
Final expense vs. term life insurance
Term life is far cheaper per dollar of coverage, but it ends, and it requires stronger health. NerdWallet’s average annual rates for a $500,000, 20-year term policy in the best health class are $2,335 for a 60-year-old man and $1,640 for a 60-year-old woman (NerdWallet, LifeStein.com data valid Oct. 1, 2026). Per $1,000 of coverage (our calculation):
| Age 60, annual cost per $1,000 of coverage | Men | Women |
|---|---|---|
| 20-year term, Preferred Plus ($500,000 policy) | $4.67 | $3.28 |
| Guaranteed issue whole life ($10,000 policy) | $68.40 | $51.60 |
The comparison isn’t apples to apples. Term policies often have high minimums (Ladder and Lemonade start at $100,000, per NerdWallet), expire before many people die, and require you to qualify medically. Final expense lasts for life and is easy to get. A practical rule from NerdWallet: if you’re in your 50s or 60s, healthy and willing to take an exam, price term first. Our best term life insurance companies list is a starting point.
Where to buy final expense coverage
- Mutual of Omaha: Policygenius names it best no-exam option for seniors; its permanent final expense policies go up to $50,000 for ages 45 to 85 without a medical exam (Policygenius).
- AARP (New York Life): NerdWallet’s top no-exam pick for seniors, but its product is term coverage for members 50 to 74 that lasts to age 80, with premiums that rise every five years (NerdWallet).
- Protective: NerdWallet’s best no-exam whole life pick, with simplified issue whole life from $20,000 to $100,000.
- Brokers and agents can compare several carriers at once; ask whether a quote is simplified or guaranteed issue and whether it has a waiting period.
Shopping the funeral itself saves money too. The Federal Trade Commission says funeral homes must give you written price lists, you have the right to buy goods and services separately rather than a package, and you can supply your own casket or urn (FTC).
Is final expense insurance worth it?
It can make sense if: you have little savings, you can’t qualify for term life because of your health, you want your family to have cash quickly outside probate, or you simply want certainty that the funeral is paid for.
It may not if: you already have savings earmarked for the funeral, you’re healthy enough to buy cheaper term coverage, or you’re buying late in life at prices that would exceed the benefit in a few years. NerdWallet also notes burial policies aren’t a fit for people who need life insurance to replace income or pay off large debts like a mortgage.
Budget for the policy alongside other senior costs; car insurance, for instance, starts rising again in your 70s, as our car insurance for seniors guide shows. Readers in Canada can compare our life insurance in Canada guide, as U.S. products and prices differ.
Common mistakes to avoid
- Buying guaranteed issue when you’d qualify for simplified issue. NerdWallet notes guaranteed issue costs more to offset the unknown risk and usually carries a waiting period.
- Missing the waiting period. If death from natural causes happens in the first two or three years of a guaranteed issue policy, beneficiaries typically get premiums back or a reduced amount, not the full benefit.
- Confusing burial insurance with pre-need plans. A pre-need plan pays the funeral home for a specific arrangement; final expense pays your beneficiary cash (NerdWallet).
- Over-buying. Every additional $5,000 of coverage costs a 70-year-old man roughly $40 to $45 a month in NerdWallet’s sample.
- Prepaying a funeral package you don’t need. The FTC says you can buy funeral goods and services separately and resist packages that include items you don’t want.
How to buy: a checklist
- Price the funeral you want using a local funeral home’s general price list.
- Subtract savings and any benefit your family will receive, then buy only the gap.
- Try simplified issue first. If you can answer the health questions, it’s cheaper and may have no waiting period.
- Read the waiting-period clause. Know exactly what happens if death occurs in years one to three.
- Name a beneficiary and tell them where the policy is.
Related guides
Frequently asked questions
How much does final expense insurance cost for seniors?
For $10,000 of guaranteed issue coverage, NerdWallet’s September 2026 sample averages are $57 a month for a 60-year-old man and $43 for a woman, rising to $87 and $64 at 70 and $157 and $127 at 80.
What is the average cost of a funeral in the U.S.?
NFDA’s latest study puts the national median at $8,300 for a funeral with viewing and burial ($9,995 with a vault) and $6,280 for a funeral with viewing and cremation, not counting cemetery costs.
Does final expense insurance have a waiting period?
Guaranteed issue policies usually do, typically two to three years for deaths from natural causes; the insurer generally refunds premiums or pays a smaller amount if death occurs during that period. Some simplified issue policies have no waiting period.
Is term life better than final expense insurance?
Term is much cheaper per dollar of coverage, about $4.67 per $1,000 a year for a healthy 60-year-old man versus about $68 for guaranteed issue in our calculation from NerdWallet data, but it expires and requires medical qualification. Final expense lasts for life and is easier to get.
Does Social Security pay for funerals?
Only a little. Social Security’s lump-sum death payment is a one-time $255 paid to an eligible surviving spouse or child.
Sources
- NerdWallet, “How to Use Burial Insurance to Pay for Final Expenses,” updated Oct. 9, 2026: nerdwallet.com
- NerdWallet, “Average Life Insurance Rates” (LifeStein.com data valid Oct. 1, 2026): nerdwallet.com
- NerdWallet, “Best Life Insurance With No Medical Exam,” October 2026: nerdwallet.com
- National Funeral Directors Association, 2023 General Price List Study (Dec. 8, 2023): nfda.org
- NFDA, Statistics: nfda.org
- CDC/NCHS, FastStats: Older Persons’ Health: cdc.gov
- Social Security Administration, Handbook §428: ssa.gov
- Federal Trade Commission, “Shopping for Funeral Services”: consumer.ftc.gov
- Policygenius, “Best No-Medical-Exam Life Insurance,” Oct. 15, 2026: policygenius.com
More guides from Prime Capital Report
Written by
Roberto Gomes, Founder and Editor
Roberto researches insurance and personal finance in the United States and Canada from insurers' policy documents, regulator data and public rate filings. He is not a licensed agent or adviser. How we research.
Written by Roberto Gomes, Editor
Roberto researches car and life insurance rates from state insurance department data, insurers' rate filings and published rate studies. He is not a licensed insurance agent, and Prime Capital Report does not sell insurance.
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