Final Expense Insurance

Final expense insurance is another form of burial insurance. It is a whole life insurance policy, which means that it accumulates in cash value and is permanent or guaranteed, as long as the premiums are paid. It differs from other life insurance policies in that the application process is very simple--there is no medical examination and very few health questions, and it is inexpensive. These policies can range from $1,000. to $75,000.

These policies are very beneficial to consumers who cannot qualify for other life insurance policies with more stringent requirements. Those with pre-existing health problems, for example, can get final expense coverage. Since the cost is low and the premiums remain level, these policies are probably the most affordable insurance option. Though the coverage is limited to burial or final expenses, the payout is quick and the insured enjoys the tax-free death benefit.

Some final expense policies provide an accelerated death benefit, where upon the diagnosis of a terminal illness, the insured can collect up to 50% of the policy benefit. This provides some added comfort with regard to coverage of the unknown.

Read the Policy Well

Like all insurance policies, the policyholder must be very diligent in reading the policy's fine print and thoroughly understanding the parameters of coverage. In this way, he or she can be sure that the policy covers what is expected and there are no surprises when he or she can least afford them. It is also a good idea to discuss all insurance policies with loved ones so that they know where to go and what to do when the time comes.