If you’re considering a final expense policy, there’s a good chance you’re being marketed something that’s not the best value.
This guide will explain what life insurance companies offer these policies, how underwriting works, and explore better alternatives when available.
What is Final Expense Life Insurance
Final expense life insurance is designed to cover small end-of-life costs, typically ranging from $5,000 to $25,000, which can include funeral expenses and outstanding debts.
Most policies are whole life insurance, sold to people over 50 with the promise of easy approval and no medical exams.
You’ve likely seen ads claiming you can get coverage for “just $9.95 per unit” or “guaranteed acceptance.”
While convenient, these policies often come with limited benefits and high premiums relative to the coverage amount.
What They Don’t Tell You in the Commercials
Many final expense policies come with a graded death benefit, meaning natural causes aren’t covered in the first two or three years.
Guaranteed-issue policies cost more, offer less coverage, and carry a two-year waiting period.
Terms like “unit pricing” are often used to make policies seem more affordable, but in reality, you may only receive a few thousand dollars of coverage.
These policies are often sold to individuals who may still be eligible for more affordable, better coverage, including term life and universal life insurance.
Link: Why Final Expense Insurance May Be a Ripoff
Final Expense Life Insurance Company Reviews
Here’s how some of the most heavily advertised final expense companies compare.
Colonial Penn
It is famous for the $9.95 ad, but pricing is based on vague units. Most buyers end up with much less coverage than expected.
Read the full Colonial Penn review
AARP / New York Life
Offers level, benefit term, and whole life coverage. Pricing is often higher than that of competitors.
Read the AARP life insurance review
Gerber Life
Sells guaranteed issue policies with a two-year waiting period—coverage up to $25,000.
Read the Gerber review
Assurity
Offers final expense policies. Premiums are typically higher than underwritten plans.
Read the Assurity Final Expense review
TruStage
Policies are marketed through credit unions. Offers whole life insurance with average pricing.
Read the TruStage review
Foresters
Focuses on final expense policies with preferred, standard, and graded underwriting.
Read the Foresters’ review
Fidelity
Offers the RAPIDecision final expense policies. All-natural cause deaths are excluded for three years.
Read the Fidelity review
Wellabe
Focuses on guaranteed issue policies. All-natural cause deaths are excluded for two years.
Read the Wellabe review
Better Alternatives for Most People
A final expense policy may seem convenient, but better options often exist, especially if you’re in decent health.
Paramedical exams, if needed, are not as bad as some final expense agents make them out to be.
Guaranteed Universal Life (GUL) offers permanent coverage with level premiums and higher death benefits, allowing you to leave more to your beneficiaries.
No-exam term or whole-life policies are available to many people and can be more affordable, particularly with living benefits and enhanced policy riders.
If you’re aged 50 to 80 and have average or better health, you may qualify for policies with no waiting period and lower monthly premiums.
When Final Expense Life Insurance Does Make Sense
There are situations where a final expense policy may be appropriate:
- You’re over 70 with multiple health issues
- Multiple life insurance companies have denied you
- You only need a small, permanent policy and want guaranteed approval
- You fully understand the cost and waiting period and still prefer the simplicity
Tips Before You Buy
Explore your options before committing to any company or policy.
Tips:
- Don’t assume you’re uninsurable—apply and let underwriting decide
- Compare underwritten quotes first, even if you think your health disqualifies you
- Work with an independent agent who can access multiple companies
- Make sure you understand whether the policy is graded or a level benefit
- Be cautious of marketing language like “unit pricing” or “guaranteed acceptance.”
General Rule: If you can qualify for a level death benefit final expense policy, you will qualify for an underwritten policy offering greater benefits at a lower price.
Final Expense Life Insurance FAQ
Most final expense policies are small whole life plans, but not all whole life insurance is sold as final expense.
Graded means the policy doesn’t fully pay out for natural causes in the first two or three years. The level benefit covers you from day one.
Yes, most final expense policies don’t require a medical exam. However, other types of life insurance also offer no-exam options with more comprehensive coverage.
You’ll pay more for less coverage, and it comes with a waiting period. It’s only a good option if you can’t qualify for anything else.
Final Thoughts
Final expense life insurance is marketed as affordable and straightforward, but many buyers end up with limited coverage and higher costs.
If you’re healthy or even moderately healthy, you may qualify for traditional life insurance with no waiting period, better benefits, and lower premiums.
Before signing up for a Colonial Penn, AARP, or Gerber plan, compare all your options to ensure you’re getting the best value. You might find a policy that gives you more peace of mind—and more value—for the money.
