Final expense insurance is a whole life insurance policy that has a small death benefit and is easier to get approved for. Final expense insurance is also called “funeral insurance,” “burial insurance,” “simplified issue whole life insurance,” or “modified whole life insurance.” All are marketing terms that the insurance industry uses to sell small whole life policies with a face value (death benefit) of $5,000 to $50,000 for the target age group of 40 – 90 years of age.
There is no difference between final expense insurance and normal life insurance other than the fact that insurers sell smaller policies to make it more affordable.
As mentioned earlier, final expense insurance is a type of whole life insurance. Whole life policies are pretty easy to understand as far as permanent life insurance goes. Once you have your policy, the premiums cannot increase, and the death benefit cannot decrease. Unlike a term policy, a whole life policy does not expire when you reach a certain age. A whole life policy also accumulates cash value that you can borrow against, though any loans that are unpaid when you die will reduce how much money your beneficiaries receive.