What is final expense insurance?

Final expense insurance is life insurance.  It is whole life insurance that is used to covers your final expenses.

Final expense life insurance policies tend to be very small whole life insurance policies. The term final expense is merely used for marketing purposes.  It’s called final expense because the proceeds are used to pay off final expenses.

What are final expenses? Your final expenses are the cost that your loved ones would have to pay after your death. Your final expenses could be any remaining doctor bills, funeral cost, any remaining consumer debt, transportation cost for relatives and possibly any money needed to provide for your family in preparation for your funeral.

What happens to leftover funds? Any money left over after your final expenses are paid is distributed to your named beneficiary.  

What is a named beneficiary? The named beneficiary is the person or persons that you listed as the beneficiaries on the life insurance application. 

The named beneficiaries will not have to go to probate court or hire an attorney to receive the life insurance proceeds.  Your named beneficiary will not have to pay taxes on the proceeds either.   When the remaining money is distributed to your named beneficiaries they can use the money as they see fit.