Final Expense Insurance, Explained

Final expense insurance is generally a smaller life insurance policy intended to help loved ones with costs after a death. The beneficiary typically decides how to use the death benefit.

Look beyond the policy's name

Compare the benefit amount, ongoing premium, eligibility requirements, and conditions for payment. A policy marketed as easy to qualify for may have a waiting period or a limited benefit during an initial period.

Questions worth asking include:

• When does the full death benefit become available?
• Can the premium change?
• What happens if a payment is missed?
• How does this fit with existing savings or life insurance?

Consider the larger picture

A smaller policy may address a specific concern, but it will not necessarily replace income or cover large outstanding debts. Start with your household's coverage needs before deciding on an amount.

Review the policy's actual terms and discuss your life insurance options if you need help comparing the choices.