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Life Insurance or Final Expense Insurance: Which Should I Choose?

Updated: Nov 8, 2023

Have you wondered which insurance policy is the right one for you? A life insurance policy provides several benefits both in your lifetime and when you’ve passed on. Likewise, a final expense insurance policy has its unique benefits, especially post-mortem expenditure.

While it’s okay to prepare your will and organize things such that there’s continuity long after you’re gone, many people often overlook their funeral costs and medical bills incurred in the event of death. As such, final expense insurance policies are highly relevant.

In this piece, we’ll discuss the implications of both policies so you can see how each one can benefit you and your loved ones even after you’ve passed.

Senior Citizen Researching Life Insurance Vs Final Expense Insurance

What Is Final Expense Insurance?

Final expense insurance is a type of life insurance that covers end-of-life expenses, especially those of a post-mortem nature. The death benefits cover expenses like a funeral or memorial ceremony, casket, cremation, or embalming.

Final expense insurance policies are small, and death benefits can be paid to the funeral home in the event that you plan in advance. Alternatively, the benefits can be paid to a named beneficiary who will handle the final arrangements.

After getting the policy, the death benefit remains fixed, while the premium also cannot increase. Although the benefits aren't usually a lot, they can help your family and loved ones cater to certain pressing bills that would’ve been difficult.

What’s the difference between final expense and life insurance?

Final expense insurance differs from traditional life insurance in the following ways:


Life insurance policies are more expensive than final expense insurance policies because they cover more scenarios. The latter is much more affordable, as a result, and appeals more to seniors on a budget.

Death Benefit

The death benefits for final expense goes to funeral arrangements and other similar costs incurred. On the other hand, standard life insurance policies are more robust and can replace income for beneficiaries.


Final expense insurance is primarily for burial costs and final expenses, while life insurance is ideal for estate planning.

Why Do People Acquire Final Expense Insurance Policies?

People get final expense insurance for various reasons. For instance, some retirees or seniors who do not need to purchase expensive life insurance plans may choose final expense insurance to cater to certain end-of-life costs.

Additionally, seniors aged 85 and above who may not qualify for term life insurance may also opt for the relative security provided by final expense insurance. This involves its ability to build cash value over time, which can be borrowed or used as collateral in one’s lifetime.

Elderly Man Reading a Story to His Grandchild

Which Is the Right Insurance Option for Me?

To decide which option is best for you, you must first consider how much coverage you need and several other factors.

Are you worried about the burial costs and other medical bills that might accrue after you pass on and want to alleviate the burden on your loved ones? Or is leaving a monetary legacy to your loved ones your chief concern? Maybe you’re seeking an option with lower insurance premiums.

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Whatever your needs are, Silver Crest Insurance can provide you with much-needed advice and has links with top insurance companies to help you make the best choice. Connect with us today.



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