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Saying goodbye to a loved one is hard enough—worrying about funeral costs shouldn’t make it harder. Final expense insurance is designed to ease that burden by helping cover the costs of funeral services and other end-of-life expenses. Many are surprised by how expensive funerals can be, often leaving grieving families with a heavy financial load.
Although its name suggests it’s only for funerals, final expense insurance can actually be used for much more. It’s meant to ease the financial pressure on your loved ones during a difficult time. The payout can help cover not only funeral and burial costs, but also outstanding medical bills, mortgage payments, credit card debt, or even help with future needs like a down payment on a home.
Final expense insurance isn’t the only way to prepare. Some choose to build a dedicated savings account instead, or pre-pay for their funeral arrangements. These options give families peace of mind, but may require more planning and discipline.
Another option is a whole life or term life insurance policy, which usually offers higher coverage and broader protection—not just for end-of-life expenses, but for your family’s financial future as well.
Final expense insurance and life insurance may seem similar, but they serve different needs. Final expense insurance is designed to handle smaller, end-of-life costs, while traditional life insurance often provides larger payouts to protect your family’s financial future. Here are the key differences:
If you’re concerned about Medicare costs, a Medigap health insurance policy (also called Medigap supplemental insurance or a Medicare supplemental plan) helps pay the “gap” between what Original Medicare (Medicare Parts A and B) pays and what you pay out of your own pocket.
You can get a Medicare Supplement insurance policy through private insurance companies. You can get a Medicare Supplement insurance plan only if you already have Original Medicare. Medigap covers Medicare Part A (hospital insurance) and Medicare Part B (medical insurance), but it does not cover Medicare Part C (Medicare Advantage plans), Medicare Part D (prescription drug plans), or any other private health insurance, Medicaid, Veterans’ Administration benefits, or TRICARE.
Because Medigap policies are regulated by state and Federal laws, the benefits for all the coverage options are the same regardless of insurer. The differences will be in the price, who administers the plan, and which of the 10 options the insurer chooses to offer. Choose a health insurer you trust, and shop around for the best prices.
Medicare Supplement cover some costs not covered by Original Medicare. For example, a 20% co-insurance bill for a doctor visit could be covered with a Medigap plan. All Medicare Supplemental insurance plans must cover standard services. Additional benefits are available with specific plans. All Medicare Supplemental insurance plans must cover:
Your open enrollment for Medigap supplemental insurance begins the first day of the month in which you turn 65 and are covered under Medicare Part B. You have six months to enroll. If you are under 65, check with your state’s Social Security Administration to see if it offers additional open enrollment periods.
“All insurance companies selling a particular Medigap plan type in your area must offer the same coverage, but may offer it at different prices. So, you may want to shop for the best price.”
Medicare Part A and Part B typically cover pre-existing conditions. The same goes for Medicare Supplement insurance. The difference is, a company may be able to refuse to sell you a Medicare Supplement plan in the first place in some cases. As long as you buy a Medicare Supplement plan during the six-month Medicare Supplement Open Enrollment Period, the insurance company cannot refuse to sell you a plan.
The insurance company also can’t charge you more because you have health problems or make you wait for basic benefits to begin. However, you may have to wait up to six months for the Medicare Supplement policy’s benefits to include your pre-existing condition*.
If you apply for a Medicare Supplement insurance plan outside of your Medicare Supplement Open Enrollment Period, the private insurance company may “underwrite” the plan. Underwriting the plan means that you may be subject to a physical exam, and the insurance company can refuse to sell you the plan or they can adjust your premium based on your health status.
Other factors impacting the premium rates of Medicare Supplement can include inflation, geography, medical underwriting (if you did not buy a plan when first eligible), and other discounts. You should check with each specific health insurer to see how it sets Medigap prices before you buy.
*Pre-existing conditions are generally health conditions that existed before the start of a policy. They may limit coverage, be excluded from coverage, or even prevent you from being approved for a policy; however, the exact definition and relevant limitations or exclusions of coverage will vary with each plan, so check a specific plan’s official plan documents to understand how that plan handles pre-existing conditions.
The product and service descriptions, if any, provided on these eHealth web pages are not intended to constitute offers to sell or solicitations in connection with any product or service. All products are not available in all areas and are subject to applicable laws, rules, and regulations.
Saying goodbye to a loved one is hard enough—worrying about funeral costs shouldn’t make it harder. Final expense insurance is designed to ease that burden by helping cover the costs of funeral services and other end-of-life expenses. Many are surprised by how expensive funerals can be, often leaving grieving families with a heavy financial load.
Although its name suggests it’s only for funerals, final expense insurance can actually be used for much more. It’s meant to ease the financial pressure on your loved ones during a difficult time. The payout can help cover not only funeral and burial costs, but also outstanding medical bills, mortgage payments, credit card debt, or even help with future needs like a down payment on a home.
If you already have enough savings to cover your end-of-life costs, final expense insurance may not be necessary. But for many people, it’s a practical and affordable way to protect their families from unexpected expenses. It’s especially helpful for those who don’t qualify for traditional life insurance due to age or health conditions. This policy ensures your loved ones won’t have to take on debt when the time comes.
Final expense insurance isn’t the only way to prepare. Some choose to build a dedicated savings account instead, or pre-pay for their funeral arrangements. These options give families peace of mind, but may require more planning and discipline.
Another option is a whole life or term life insurance policy, which usually offers higher coverage and broader protection—not just for end-of-life expenses, but for your family’s financial future as well.
Final expense insurance and life insurance may seem similar, but they serve different needs. Final expense insurance is designed to handle smaller, end-of-life costs, while traditional life insurance often provides larger payouts to protect your family’s financial future. Here are the key differences:
Final expense policies usually offer lower coverage—typically between $10,000 and $50,000—which is ideal for covering funeral expenses and small debts. Because of this, premiums are often more affordable than term or whole life insurance. If you’re looking for higher protection, a traditional life insurance policy may be a better fit.
Unlike traditional life insurance, final expense plans often don’t require a medical exam. Most applicants can qualify by answering just a few basic health questions, making it a convenient option—especially for seniors or those with preexisting conditions.
Not everyone does, but having both can offer complete peace of mind. A traditional life policy can support your family’s financial needs long-term, while a final expense plan ensures funeral costs won’t cut into that larger payout. It’s a smart way to protect your legacy and relieve your loved ones from immediate expenses.
The cost of final expense insurance varies based on a few personal factors. Like any life insurance, your premium is influenced by:
Final expense policies usually range between $2,000 and $50,000 in coverage. The more you want to leave behind to help your loved ones, the higher your monthly premium will be.
Generally, younger and healthier applicants enjoy lower premiums. But even if you’re older or have health issues, final expense insurance is still accessible and affordable. It can serve as an important layer of financial protection during your later years.
If you’re thinking about final expense insurance, it’s wise to speak with a licensed agent. Our team is here to answer all your questions and guide you toward the right plan—ensuring your family is covered and stress-free when it matters most.
