Financial planning can be one way to help make things a little easier for the people you love. Along with important personal decisions, planning can include preparing for expenses your family may need to manage after your passing.

But costs associated with funerals can be substantial. According to the National Funeral Directors Association (NFDA), the national median cost of a funeral with viewing and burial was $8,300 in 2023, while a funeral with cremation had a median cost of $6,280.¹ Final expense insurance is specifically built to help families prepare for expenses like these.

What Is Final Expense Insurance?

Final expense insurance is a type of life insurance that provides a death benefit to help loved ones manage expenses after the insured's death. It generally offers a smaller benefit than traditional life insurance that is intended to replace income, cover a mortgage or provide long-term financial support.

Sometimes called burial insurance or funeral insurance, final expense coverage is often structured as whole life insurance.

How Does Final Expense Insurance Work?

The policyholder selects an available coverage amount and pays premiums to keep the policy in force. When the insured dies, the applicable death benefit is paid to the named beneficiary according to the policy terms.

The beneficiary generally has flexibility in how the proceeds are used. Application requirements, eligibility, benefits and limitations can vary, so reviewing the details of a specific policy is imperative.

What Does Final Expense Insurance Cover?

Although funeral expenses are a common reason for purchasing coverage, beneficiaries may use proceeds for a range of needs, including:

• Funeral, memorial, burial or cremation costs
• Outstanding medical bills
• Debts and household expenses
• Other expenses following a death

The potential costs can be significant, particularly for families without substantial savings set aside.

For some families, an unexpected expense of several thousand dollars could present a much greater challenge. That’s why having this policy in place can make a difference.

Final Expense from ManhattanLife is a whole life policy designed to help protect your loved ones from the financial burden of final expenses, with coverage available up to $50,000. Plan highlights for ManhattanLife's Final Expense product include:

• Issue ages 0 – 85
• Rates will never increase
• Coverage will never decrease
• Builds cash value
• Benefits are income-tax free*
• No waiting period for full coverage
• Optional Accidental Death Benefit rider
• Permanent insurance policy

* Please consult your tax consultant for qualifications.

Can Final Expense Insurance Pay Medical Bills?

Beneficiaries may be able to use proceeds toward outstanding medical bills. However, final expense insurance isn't health insurance. Health insurance helps pay eligible healthcare costs, while final expense insurance is life insurance that pays an applicable death benefit to the beneficiary after the insured has passed.

But as mentioned previously, it is typically at the beneficiary’s discretion as to how the death benefit is applied.

Who Should Consider Final Expense Insurance?

Final expense insurance may be worth considering for people who want coverage specifically intended to help loved ones manage expenses after their death.

For some seniors, a large traditional life insurance policy may no longer fit their needs, while a smaller amount of lifelong coverage may still be useful. Consumers looking for burial insurance for seniors or burial insurance for elderly family members may find final expense coverage to be a viable option.

How Much Does Final Expense Insurance Cost?

Premiums can vary based on factors such as age, coverage amount, health and underwriting requirements and policy features. Generally, a larger amount of coverage will result in a higher premium, while a smaller amount of coverage will result in a lower premium.

Consider both the protection you want to provide and whether the premium fits comfortably within your budget. You may find it helpful to discuss your goals with a broker to pinpoint the type of coverage and premium that best suit you.

Is Final Expense Insurance Worth It?

That depends on your needs and existing financial resources. Consider asking yourself:

• Would these expenses create a financial burden for my family?
• Do I already have enough life insurance or savings to cover them?
• Do I want to leave funds that can help loved ones handle these costs?

For people who already have sufficient savings or life insurance, additional coverage may not be necessary. For others, final expense insurance can be an additional way to plan ahead.

Helping Protect the People You Love

As we've covered, this type of life insurance can provide a death benefit after your passing that your beneficiaries may use for funeral and burial costs, outstanding medical bills, debts and other expenses.

Whether final expense insurance is right for you depends on your existing coverage, savings, budget and the amount of protection you want to leave behind. Understanding how the coverage works, what it may cost and how the benefit can be used can help you make a more informed decision.

Ultimately, planning is about helping give the people you care about greater financial flexibility during a difficult time.

Find out more about Final Expense insurance from ManhattanLife: Final Expense Brochure

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Works Cited

1. National Funeral Directors Association. “2023 NFDA General Price List Study, national median funeral costs for 2023.” https://content.nfda.org/news/media-center/nfda-news-releases/id/8134/2023-nfda-general-price-list-study-shows-inflation-increasing-faster-than-the-cost-of-a-funeral

2. Board of Governors of the Federal Reserve System. “Report on the Economic Well-Being of U.S. Households in 2024.” https://www.federalreserve.gov/publications/2025-economic-well-being-of-us-households-in-2024-acknowledgements.htm