Life Insurance Final expense insurance cost in 2023 A $10,000 policy, starting at an average of $295 annually, can be used for funeral costs, debts and financial obligations. Written by Katrina Raenell Katrina Raenell Katrina Raenell is a writer, editor and educator with 20 years of experience in content and communications for international organizations, nonprofits and start-ups. In her previous roles, she was a communications manager for study abroad, content project manager for higher education and finance websites, reported on arts and culture, and was a managing editor for an online health and wellness publication. Reviewed by Laura Longero Laura Longero Laura Longero is a content strategist and communications leader with more than 15 years of experience in content development in journalism, marketing and communications for start-ups to global companies. She started her career as a reporter and editor and honed her journalistic skills at the USA Today Network, working in several roles, as well as managing content and writing at MoneyGeek and XYZ Media. Posted on: September 14, 2023 Why you can trust Insure.com Quality Verified At Insure.com, we are committed to providing the timely, accurate and expert information consumers need to make smart insurance decisions. All our content is written and reviewed by industry professionals and insurance experts. Our team carefully vets our rate data to ensure we only provide reliable and up-to-date insurance pricing. We follow the highest editorial standards. Our content is based solely on objective research and data gathering. We maintain strict editorial independence to ensure unbiased coverage of the insurance industry. Life can change without warning. While it’s easy to presume a long, healthy life lies ahead, this isn’t always the case. That’s why it’s essential to create a financial plan for your death — ensuring your loved ones are financially provided for and your final expenses are covered. The national median cost of a funeral with burial in 2021 was $7,848, according to the National Funeral Directors Association. With additional funeral costs and potential medical costs and debts, the financial situation your family inherits after your death could be overwhelming. Learn more about overall final expense costs, including the best rates, factors that impact premiums and expert insight for finding affordable options. Key Takeaways Final expense insurance is an affordable life insurance option that provides financial coverage and peace of mind for loved ones. Final expense insurance rates range from an average of $295 annually for a 45-year-old woman for a $10,000 policy to $1,734 for a 65-year-old man for a $25,000 policy. Premiums are based on factors such as health conditions, age, gender and policy face amount. Why consider final expense insurance? There are many reasons to consider final expense insurance. You may be in your golden years and want to ensure your final wishes are secured. Or, you may wish to spare your loved ones the additional burden of handling your financial affairs. Final expense insurance can provide you with a sense of security and peace of mind knowing that it provides your loved ones with funds for credit card debt, financial support, funeral expenses and medical bills. “Whether a consumer purchases final expense insurance or ‘self insures’ through other means, the important thing is that families are prepared for medical bills accrued in the final stages of life, probate and other legal fees, and funeral services and burial expenses,” says Jim Brau, Joel C. Peterson professor of finance at Brigham Young University Marriott School of Business. “Final expenses can range in the tens of thousands of dollars. Final expense insurance guarantees these financial needs will be met.” How much does final expense insurance cost? Final expense insurance is often affordable, especially when contrasted with funeral costs and your remaining debts. Average final expense rates start at $25 a month or $295 annually for a $10,000 face policy for a 45-year-old female. Your monthly cost can vary based on your age, gender, policy amount and other health factors. Men typically pay the most, with those 65 years or older paying on average about $145 monthly or $1,734 annually for a $25,000 face policy . Average cost of final expense insurance The average cost of final expense insurance comes down to your age, gender and the policy amount. Final expense insurance is a whole life insurance policy that considers specific health and life-expectancy factors when determining premiums. For example, women generally tend to live longer than men; therefore, their premiums are often cheaper. Similar to other life insurance policies, it’s cheaper the earlier you buy it. 1. National average premiums Final expense insurance policies typically cost an average of $447 annually for a $10,000 face policy – around $37 per month. Costs may fluctuate based on the state you live in and the policy amount you’re seeking. While you can purchase final expense insurance and use it in any state within the United States, you should be aware of any specific cost increases that may exist within different states before purchasing your policy. 2. Sample quotes for different age groups The most affordable rates for both $10,000 and $25,000 face policies are for 45-year-old women. On average, these women will pay $78-$110 less annually than 45-year-old men. Additionally, this is also the cheapest premium for men at an average of $343-$790 annually. Premiums increase year-over-year (YOY) as you age, anywhere from $7-$83 based on your age, gender and policy face amount. The YOY lowest increase is for 50-year-old men and women for both $10,000 and $25,000 face policies. For a $10,000 policy, 50-year-old women pay $6 more and men pay $10 more annually on average. A $25,000 policy has 50-year-old women paying an average of $13 and men $25 more annually. The most expensive annual increase is for 65-year-old men for $10,000 and $25,000 policies. Men will pay an average of $722 annually, up $34 from 64-year-old men, for a $10,000 face policy. They will pay an average of $1,734 annually for a $25,000 policy — $84 more per year than 64-year-old men. 3. Comparing costs of different coverage options When it comes to determining your policy face coverage, you should consider how much you can afford to pay monthly or annually, how much your loved ones may need in your absence, the cost of your burial or cremation, final debts and your age. For example, you may be in your late 40s and beginning to think of end-of-life needs, but can only afford a $10,000 policy at this time. You can increase your policy amount at a later date — which will create a new policy — but you will need to spend more annually on your premiums. The following average annual rates are based on individuals who reside in California without health issues and who are nonsmokers with a simplified issue policy. Average annual premium for coverage $10,000 and $25,000 $10,000 Age Female Male 45 $295 $343 46 $302 $353 47 $310 $364 48 $318 $375 49 $326 $386 50 $332 $396 51 $342 $411 52 $353 $425 53 $364 $441 54 $375 $457 55 $386 $475 56 $399 $493 57 $411 $512 58 $424 $532 59 $438 $551 60 $453 $572 61 $473 $599 62 $493 $627 63 $513 $656 64 $535 $689 65 $557 $722 $25,000 Age Female Male 45 $673 $790 46 $691 $817 47 $711 $843 48 $730 $869 49 $750 $897 50 $763 $922 51 $790 $958 52 $816 $994 53 $843 $1,033 54 $872 $1,075 55 $900 $1,118 56 $930 $1,165 57 $962 $1,212 58 $994 $1,260 59 $1,029 $1,309 60 $1,066 $1,360 61 $1,116 $1,427 62 $1,167 $1,496 63 $1,217 $1,569 64 $1,271 $1,650 65 $1,326 $1,734 Factors affecting final expense insurance costs Final expense insurance premiums are determined based on your factors. This includes your age, health profile, type of coverage, the face amount of the policy and more. If you’re a smoker or have a terminal illness, you’re likely looking at a higher premium for coverage because you have a higher health and death risk. Learn more about what insurers consider when determining your annual final expense insurance costs. Age of the insured Final expense insurance rates tend to increase the older you are and the closer you are to your life expectancy. Typically, rates range in five-year age brackets and increase by $7-$10 each year for a $10,000 face policy. So, if you’re a 45-year-old female, you’re looking at a $295 average annual cost and $302 annually if you’re 46. Coverage amount and type of plan Typically, the more coverage you need, the higher the premiums will be. It can help to consider your desired funeral and burial needs, as well as your financial standing and beneficiaries. If you’re the main breadwinner in your home, you may want to consider a higher-face policy. This will mean that you pay more annually, but your death benefits will be more substantial. Generally, final expense policy plan coverage ranges from $5,000 to $35,000. Most individuals purchase a policy in their 40s to 80s; however, there may be policies for those who are younger. Duration of the policy As long as you continue to pay your final expense insurance policy, it does not expire. This is because final expense insurance is a whole life insurance option. Your premium rate is fixed throughout your life and remains active despite age. Your policy will end at the time of your death or if it is canceled. If you decide to change your plan or increase your face policy amount, you will need to start a new plan. This can impact your premium and increase your annual amount based on the plan you choose. Location and funeral service costs When planning for your funeral and burial or cremation and end-of-life costs, it’s important to factor in your finances, anticipated burial or cremation needs and what your loved ones may need to cover expenses in your absence. Otherwise, you may start a policy with a low annual cost that doesn’t cover or exceed your needs after your death. On average, a funeral with a burial, casket and other related costs can be as much as $9,000. If your policy is only $10,000, you may not be leaving enough for other final expenses, such as medical bills or debts. Tips for finding affordable final expense insurance Now that you’re aware of the costs and potential needs, you may be wondering how you find the cheapest final expense insurance coverage and policy. Your best bet is to shop around and investigate all your options. 1. Compare quotes from multiple providers To find the most affordable final expense insurance for your needs, it helps to shop around. Brau says to shop various companies that offer final expense insurance to compare apples to apples – and research alternatives. “Final expense insurance is often tied into whole life insurance, and they’re not always the best rates,” Brau says. 2. Consider policy riders and add-ons Adding on option coverage options to your life insurance policy could be another great way to cut costs on your premiums. Some common riders and add-ons include temporary accidental death, terminal illness and accidental death (AD&D) benefits. These types of additional coverage options can provide similar final expense coverage for less. For example, adding on an accidental death benefit could cost as low as $60 a year for $20,000 to $500,000 for individuals. 3. Importance of reviewing policy terms and conditions When purchasing insurance, it’s important to review the policy terms and conditions. They detail what is included and excluded in the coverage, what happens with death benefits and the conditions you’re agreeing to. You may also discover that there are certain conditions where you may be able to take out an early payout or loan. You can also learn how much your loved ones will receive when you die and determine what the funds can be used for. 4. Utilizing group or association memberships Employers and associations often offer whole life and final expense insurance policies as an employee benefit. These options can help save you money on your premiums as your employer and selected insurance company offer a group option that may include high coverage amounts and a lower premium. This is because your employer may pay a portion of the premium. 5. Seeking expert advice It can help to talk to various insurance agents and individuals in the funeral and end-of-life industries to gain their insight on final expense insurance. You can share your situation with them and ask for their advice on policies, how to handle your affairs and any common considerations you should factor into your purchasing decision. When you’re shopping around, you can also ask for additional information on terms, conditions and ways to save. By seeking advice from experts, you can help focus on the best options for you. Bottom line on final expense insurance rates It’s never too soon to start thinking about your end-of-life plans, especially as it relates to debts, funeral expenses and daily expenses your loved ones may need financial assistance with. Final expense insurance is an affordable option for men and women in their 40s and 50s. While YOY increases may impact premium costs for older individuals, it may still be a cost-effective option. It’s likely worth investigating life insurance add-ons or similar policies available that could be more affordable, especially if you’re in an older age bracket. Shopping around and discussing your options with insurance agents and end-of-life service representatives can help you determine what option and policy amount you may need for your situation. Sources: Funeral Funds of America. “How much does final expense insurance cost?” Accessed August 2023. Lincoln National Funeral Advantage. “What is final expense insurance?” Accessed August 2023. National Funeral Directors Association. “Statistics.” Accessed August 2023. × Get Free Life Insurance Quotes Today! Zip Code Please enter valid zip Age Age 16 – 20 21 – 24 25 – 34 35 – 44 45 – 54 55 – 64 65+ Coverage Amount Coverage Amount $50,000 – $100,000 $100,000 – $200,000 $200,000 – $300,000 $400,000 – $500,000 $500,000 – $1,000,000 $1,000,000 – $2,000,000 $2,000,000 – $5,000,000 $5,000,000+ Coverage Type Coverage Type Whole Life Term Life Final Expense Not Sure Gender Gender Male Female Non-Binary Tobacco Use Yes No Compare Quotes Katrina RaenellContributing Researcher  . .Katrina Raenell is a writer, editor and educator with 20 years of experience in content and communications for international organizations, nonprofits and start-ups. In her previous roles, she was a communications manager for study abroad, content project manager for higher education and finance websites, reported on arts and culture, and was a managing editor for an online health and wellness publication. Related Articles Types of life insurance By Huma Naeem How to read your life insurance policy By Shivani Gite What is cash value life insurance and how does it work? By Desiree Ghazi Bridging the life insurance divide: Insights on coverage gaps among key demographics By Nupur Gambhir Can a spouse override a life insurance beneficiary? By Shivani Gite What is term life insurance and how does it work? By Desiree Ghazi On this page Why consider final expense insurance?How much does final expense insurance cost?Factors affecting final expense insurance costsTips for finding affordable final expense insuranceBottom line on final expense insurance rates Get instant quotes now ! Please enter valid zip Get Quotes