Two policies, two jobs
Life insurance pays a benefit to the people you name when you die. Final expense insurance is a small life insurance policy meant to help pay for a funeral and the bills or debts you leave. Term life is usually a larger policy meant to protect a family for a set number of years, while a mortgage is being paid or children are growing up. Which one fits depends on what you want the money to do. If you'd like someone to talk it through with you, that's what we do.
Final expense insurance
Final expense coverage is also called funeral or burial insurance. The death benefit is usually small, often between $5,000 and $25,000. Depending on the policy, coverage lasts for a set number of years or for your whole life. It is easier to qualify for than most life insurance: there are few or no health questions, and often no medical exam. The trade-off is a lower benefit and premiums that are usually higher for the coverage you get, and over the years what you pay in premiums can come to more than the funeral itself. The money goes to your beneficiary, who can use it in any way, including for the funeral, medical bills or debts.
Term life insurance
Term life covers you for a set period, such as 10 or 20 years, or until a set age. It pays the people you name only if you die during that term, which is why families use it to replace income or pay off a mortgage. Term coverage generally costs less in the early years than permanent coverage. If the term ends while you are living, the coverage stops and no benefit is paid. You can renew most term policies for another term even if your health has changed, but the premium goes up each time, and some term policies can be converted to permanent coverage up to a set age without a medical exam.
Side by side
How long it lasts
Final expense lasts a set number of years or your whole life, depending on the policy. Term life lasts for the years you choose.
Size of the benefit
Final expense is often $5,000 to $25,000, sized for a funeral and final bills. Term life is usually larger, sized for income and debts.
Health questions
Final expense has few or no health questions and often no exam. A term policy can usually be renewed without new health questions.
Premiums
Final expense premiums are usually higher for the coverage you get. Term premiums go up each time you renew, and term costs more the older you are.
Built for
Final expense: a funeral and last bills, so family is not left with them. Term life: protecting the people who depend on your income.
Why some people have both
A term policy can protect your family while the mortgage and the children's years at home are the big concerns, and a final expense policy can stay in place after the term ends. For help deciding how much coverage your family would need, see how much life insurance you need. You can also read about final expense insurance and term life insurance and request a quote for either.
Common questions
Can I have both kinds of policy?
What happens when a term policy ends?
Do I need a medical exam?
Who receives the money?
Does my age matter?
Does it cost anything to talk with you?
Want a quote for either one?
Licensed agents serving clients nationwide. Our help is free to you.
Final expense quoteTerm life quoteSources (4)
NAIC: Life insurance (consumer guide)
NAIC: Life insurance (insurance topic)
Washington State Office of the Insurance Commissioner: Funeral insurance
California Department of Insurance: Life insurance guide
Last reviewed October 2026. Policy features differ by company; your policy documents have the exact terms.