Final expense insurance: how much a funeral costs and how to protect your family

How much a funeral costs in the United States

According to the most recent price study from the National Funeral Directors Association (NFDA, 2023), the national median cost of a funeral with a viewing and burial is $8,300. With a viewing and cremation, the median is $6,280.

Those numbers do not include the cemetery plot or burial, the monument or headstone, or other costs like flowers or an obituary. In real life, the total is usually higher.

If the family wants to send the body back to their home country, that cost has to be added. For example, the Consulate of Mexico in Atlanta reports that basic transport service to Mexico from Georgia or Tennessee costs between $5,000 and $6,000, and it can be more from other states.

What final expense insurance is

It is a small whole life insurance policy. The premium does not go up over the years and the benefit does not go down. When the person passes away, the money is paid to the beneficiary they chose.

The beneficiary can use that money for whatever the family needs: the funeral, cremation, transport, medical bills or any other cost. It is not tied to a funeral home.

At what age can you get it, and for how much?

It depends on the insurance company. In the public products we reviewed, the ages to apply go from 45 or 50 up to 80 or 85, and the amounts usually range from a few thousand dollars up to $25,000 or $50,000. In some states, like New York, the ranges are narrower.

A benefits consultant compares several insurance companies to find the amount that would cover what your family would need.

Is there a medical exam? Is there a waiting period?

Usually there is no medical exam. There are two main types:

• Simplified issue: no exam, but a few health questions. Based on your answers, the insurance company offers you a plan with full coverage from the start or a graded one.
• Guaranteed issue: no health questions. In exchange, it usually has a 2-year graded period: if death is from natural causes during that time, the insurance company returns the premiums paid plus a percentage (for example, 10%). If death is accidental, it pays the full benefit from the start.

That is why it pays to compare: if you qualify for a plan with full coverage from the start, you avoid the waiting period. Health questions must always be answered truthfully.

Final expense insurance, prepaid funeral plans and Social Security

A prepaid funeral plan is a contract with a funeral home for future services. The money is tied to that funeral home. Final expense insurance, on the other hand, pays the money to your family, and they decide how to use it.

Social Security gives a one-time payment of $255 to a spouse or children who qualify. It helps, but it is far from covering a funeral.

Your rights when you arrange a funeral

The FTC Funeral Rule protects families. Among other things, you have the right to:

• Buy only the goods and services you want, with no required package.
• Get prices over the phone and receive the general price list in writing.
• Use a casket or urn you bought somewhere else, without the funeral home charging you for it.
• Be offered an alternative container, which costs less, if you choose cremation.
• Know that no state law requires embalming in every case.

Frequently asked questions