Final expense insurance cost in 2023

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. 

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. 

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