The Real Picture: Average Final Expense Cost and What It Pays For
- Taylor Cassidy
- June 13, 2025
- 5:54 pm
Key Takeaways
- Final expenses can be significant, often totaling $10,000 to $15,000, including funeral, burial, and unpaid bills.
- Final expense insurance offers an affordable way to cover these costs, with premiums starting as low as $30 per month.
- Planning beforehand with the right coverage can protect your loved ones from financial stress during a difficult time.
When you think about planning for the future, one of the most overlooked steps is preparing for end-of-life expenses. No one enjoys thinking about it, but it is an essential part of everyone’s life. It is because you don’t want to leave your family in financial distress while they’re dealing with a loss. That’s where final expense insurance comes in.
You can get a clear picture of final expense policies after knowing about the average final expense cost and the ultimate coverage of your policy. Whether you’re considering a policy for yourself or helping a loved one make decisions, this guide breaks it all down so it’s easy to understand.
What Is Final Expense Insurance?
Sometimes called burial insurance or funeral insurance, it is a type of whole life insurance designed to cover the expenses that your loved ones will face when you pass away. Unlike traditional life insurance, final expense policies typically offer smaller death benefits, making them more affordable and easier to qualify for.
The insurance is especially popular with seniors who may not need a full life insurance policy but still want to ensure their bills are covered.
Why It Matters: Final Expenses Add Up Quickly
You may be surprised at how expensive it can be to cover end-of-life costs. The average cost of final expenses goes beyond the funeral itself. These can include:
- Funeral service fees
- Burial or cremation
- Headstone or urn
- Transportation
- Legal documentation
- Medical bills
- Credit card debt
- Unpaid utility bills
Even a basic funeral can leave your family with several thousand dollars in bills.
The Average Funeral Cost in the U.S.
So, what does a typical funeral cost in America today? As of recent data, the average funeral cost with a burial is between $8,000 and $10,000, while a cremation typically costs $6,000 to $7,000. These numbers can fluctuate based on location, type of service, and personal preferences.
Here’s a breakdown of typical funeral-related expenses:
| Expense | Estimated Cost |
| Basic service fee | $2,000 – $2,500 |
| Transportation (hearse) | $300 – $400 |
| Embalming and preparation | $500 – $1,000 |
| Viewing and ceremony | $1,000 – $2,000 |
| Casket | $2,000 – $5,000+ |
| Burial plot | $1,000 – $4,000 |
| Headstone | $1,000 – $3,000 |
| Flowers and programs | $200 – $500 |
It’s easy for these expenses to pile up. That’s why final expense insurance exists: to help offset or completely cover these costs.
Final Expense Insurance Cost: What You Can Expect to Pay
The final expense insurance cost varies depending on your age, health, gender, and the coverage amount you choose. However, there is not much to worry about as it’s often more affordable than people expect.
Common Monthly Premiums
Here are average monthly premiums for a $10,000 final expense policy:
- Age 50–55: $30 – $50/month
- Age 60–65: $40 – $70/month
- Age 70–75: $60 – $100/month
- Age 80+: $100 – $150+/month
Some funeral expense policies don’t require a medical exam and offer “guaranteed acceptance” for people with health conditions, although these may have higher premiums or limited benefits during the first few years.
What Final Expense Insurance Pays For
When you purchase final expense insurance, the death benefit is typically paid out to your beneficiary (often a spouse, child, or trusted family member). They can use the money however they choose, but it’s usually intended to cover:
1. Funeral and Burial Costs
As we mentioned earlier, these are the biggest and most immediate expenses. A good policy ensures your family doesn’t have to pay out of pocket or go into debt to give you a dignified farewell.
2. Medical Bills
If you were hospitalized or receiving treatment before passing, final expense funds can help settle outstanding medical costs that insurance didn’t cover.
3. Outstanding Debts
This includes credit card balances, personal loans, or even unpaid rent or mortgage payments.
4. Legal and Administrative Fees
Your family might need to pay for death certificates, estate processing, or legal help. Final expense insurance can help cover these fees.
5. Travel and Lodging for Relatives
If loved ones are flying in from other states or need accommodations for your service, they can use the policy to help with those costs.
Is Final Expense Insurance Worth It?
If you’re wondering whether final expense insurance is a smart investment, consider these questions:
- Do you have enough savings to cover a $10,000 to $15,000 funeral?
- Would your death leave loved ones with unpaid bills?
- Do you have peace of mind knowing your affairs are in order?
If the answer is “no”, final expense insurance can be a practical and compassionate solution.
Tips for Choosing the Right Final Expense Policy
Compare Quotes
Don’t settle for the first offer. Get multiple burial insurance quotes or talk to different insurance agents to find the best deal.
Read the Fine Print
Make sure you understand waiting periods, exclusions, and whether the policy is guaranteed issue or simplified issue.
Choose the Right Coverage Amount
Take time to calculate the average cost of final expenses in your area. This can vary widely between urban and rural settings.
Consider Your Health
Some policies require medical underwriting, which can help you get a lower premium if you’re in good health. Others offer guaranteed approval, which might cost more but offers accessibility.
Alternatives to Final Expense Insurance
Final expense insurance isn’t your only option. Depending on your financial situation, you might also consider:
- Prepaid funeral plans with a funeral home
- Savings accounts earmarked for end-of-life costs
- Traditional whole life or term life insurance
- Veterans’ burial benefits (if applicable)
Each insurance plan has pros and cons, so it’s worth exploring all options before choosing.
Give Your Loved Ones Peace of Mind
Planning ahead for your end-of-life expenses may not be a pleasant task, but it’s a deeply responsible and loving one. By understanding the final expense insurance cost and how it fits your budget, you can make sure your family isn’t left scrambling to cover the average funeral cost or other expenses when the time comes.
A small policy can go a long way in giving everyone peace of mind. After all, your final legacy shouldn’t be a financial burden, it should be a thoughtful gift.
FAQ's
The average final expense cost typically ranges from $10,000 to $15,000, including funeral, burial, medical bills, and other end-of-life costs.
Final expense insurance covers funeral services, burial or cremation, medical bills, unpaid debts, and other related expenses.
Monthly premiums vary by age and health but generally range from $30 to $150 for policies offering $10,000 to $15,000 in coverage.
