Whole Life Insurance
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June Marcia Williams
Independent Life Insurance Agent · 12 Years Experience
NJ #1543971
PA #767197
FL #W840529
MD #3004137002
VA #1575461
Final Expense Insurance — What It Really Costs
Last updated March 29, 2026
Final expense insurance (also called burial insurance or funeral insurance) is permanent life insurance that covers end-of-life costs. Face amounts range from $5,000 to $50,000 for ages 50–85. No medical exam. Premiums never increase. Death benefit is tax-free. Two carrier options available through June: Foresters PlanRight (3 tiers) and Washington National Providence Whole Life (2 plans).
In This Guide
- How Much Does a Funeral Cost?
- Simplified Issue vs. Guaranteed Issue
- The Three Tiers — Foresters PlanRight
- Washington National — Providence Whole Life
- Fraternal Benefits — The Foresters Difference
- Irrevocable Burial Trusts & Medicaid Planning
- Who Needs Final Expense Insurance
- Coverage for Marijuana Users
- Health Conditions & Underwriting
- How to Choose the Right Amount
- Veterans & VA Burial Benefits
- What to Look For Before You Buy
How Much Does a Funeral Cost?
The median cost of a funeral with viewing and burial in the U.S. is $7,848. With a vault, it rises to $9,420. Cremation with a service averages $6,280. Northeast states (NJ, PA, MD) run 15–30% above the national average.
These numbers don't include cemetery plots ($1,000–$4,000), headstones ($1,000–$3,000), flowers, obituaries, or post-funeral gatherings — which can add $3,000–$8,000.
| Service | National Median | Northeast Est. |
|---|---|---|
| Funeral with viewing & burial | $7,848 | $9,000–$11,000 |
| Funeral with burial + vault | $9,420 | $11,000–$13,000 |
| Cremation with memorial service | $6,280 | $7,000–$9,000 |
| Direct cremation (no service) | $2,398 | $2,800–$3,500 |
| Cemetery plot | $1,000–$4,000 | $2,000–$5,000 |
| Headstone / monument | $1,000–$3,000 | $1,500–$4,000 |
A $15,000–$25,000 policy covers the full spread for most families. A $10,000 policy covers cremation with a memorial service and some breathing room. Source: National Funeral Directors Association, 2023.
Simplified Issue vs. Guaranteed Issue
Simplified issue = no exam, but health questions. If you qualify, full coverage from day one at lower premiums. Guaranteed issue = no health questions at all, but a 2-year graded benefit period and 30–50% higher premiums. Always take simplified issue if you can qualify.
| Feature | Simplified Issue | Guaranteed Issue |
|---|---|---|
| Medical exam | No | No |
| Health questions | Yes (5–12 questions) | No |
| Death benefit | 100% from day 1 | Graded — full after 2 years |
| Premiums | Lower | 30–50% higher |
| Max face amount | $35,000–$50,000 | $15,000–$25,000 |
| Who it's for | Seniors with manageable health | Seniors declined elsewhere |
The Three Tiers — Foresters PlanRight
Through Foresters Financial, final expense comes in three tiers. All tiers: ages 50–85, no exam, $5,000 minimum face, $10/month minimum premium, $36/year certificate fee. Cash value and loans available on all tiers.
Preferred
100% benefit from day 1
Up to $35,000 (50–80) · $15,000 (81–85)
Best health profile. Terminal Illness rider + optional Accidental Death rider included. Full fraternal benefits.
Standard
100% benefit from day 1
Up to $20,000 (50–80) · $10,000 (81–85)
Minor health conditions accepted. Terminal Illness rider + optional Accidental Death rider included. Full fraternal benefits.
Basic (Graded)
Graded — full after year 2
Up to $15,000 (50–80 only)
Significant health history. Years 1–2: return of premium + 10% interest. Year 3+: full benefit. No terminal illness rider. No accidental death rider.
Built-in at no extra cost: Common Carrier Accidental Death Benefit and Family Health Benefit (hurricane/disaster coverage). These are exclusive fraternal benefits — no traditional carrier offers them.
Washington National — Providence Whole Life
A second carrier option with two plans: Level Benefit (full death benefit from day 1, $5K–$50K, ages 50–85) and Graded Benefit (limited benefit first 2 years, $5K–$30K, ages 50–80). Underwriting uses Irix prescription database + MIB report.
| Feature | Level Benefit (ICC17W3013) | Graded Benefit (ICC17W3014) |
|---|---|---|
| Death benefit | 100% from day 1 | Yr 1: 110% of annual premium Yr 2: 120% of 2-yr premiums Yr 3+: 100% face |
| Issue ages | 50–85 | 50–80 |
| Face amount | $5,000–$50,000 | $5,000–$30,000 |
| Policy fee | $40/year | $40/year |
| Maturity | Age 121 | Age 121 |
| Terminal Illness ADB | ✅ Auto-included (75% of DB) | ✅ Auto-included (75% of DB) |
| Accidental Death | Optional ($2–$5 per $1K) | Optional ($2–$5 per $1K) |
Underwriting uses a prescription database check (Irix) plus MIB report. No blood draw. A 15-minute Personal Health Interview by phone may be required. Section 5 questions (1–11): any "yes" = decline both plans. Section 6 questions (1–3): any "yes" = decline Level, may qualify for Graded.
Fraternal Benefits — The Foresters Difference
Foresters Financial is a fraternal benefit society, not a traditional insurance company. Every PlanRight policyholder becomes a member and receives benefits that State Farm, MetLife, and New York Life cannot match.
🎗️ Charity Benefit
1% of face amount (up to $100,000) donated to a charity of the policyholder's choice at death — built into the policy at zero cost
🌀 Family Health Benefit
Hurricane, tornado, earthquake, and disaster coverage. Ambulance: $50, ER: $100, Hospital: $100/day (5 days max). $650/person/incident. Built-in, no extra premium.
🎓 Community Grants
Members can apply for volunteer grants, scholarship programs, and orphan benefits through Foresters' community investment programs
🛡️ Common Carrier ADB
Additional accidental death benefit when traveling as a fare-paying passenger on a common carrier (bus, train, plane, etc.) — auto-included
For Florida policyholders, the Family Health Benefit alone makes Foresters a standout — hurricane coverage built into a life insurance policy is something no traditional carrier offers.
Irrevocable Burial Trusts & Medicaid Planning
When assigned to an irrevocable burial trust, a final expense policy becomes an exempt asset for Medicaid eligibility. It doesn't count against the $2,000 asset limit. The funeral home is named as beneficiary. At death, the trust pays the funeral home directly.
How It Works
The policy is owned by an irrevocable funeral trust — not the insured. Because the trust is irrevocable, Medicaid cannot count it as an available asset. This means a senior applying for Medicaid (or already on Medicaid) can own a final expense policy while preserving eligibility.
Who Should Consider This
- Seniors 60+ who may need long-term care and could face Medicaid spend-down
- Families planning ahead for a parent's eventual nursing home costs
- Anyone on Medicaid who wants their funeral covered without jeopardizing benefits
This is a conversation every independent agent should have with clients aged 60+. Captive agents at large carriers often don't offer this planning.
Who Needs Final Expense Insurance
Anyone aged 50–85 who doesn't want their family scrambling for $8,000–$15,000 during the worst week of their lives. 37% of Americans can't cover a $400 emergency — a funeral would devastate them.
👴 Seniors 50–85
Don't burden your family with funeral costs. Lock in a rate now — it only gets more expensive with age.
🏥 People with Health Conditions
Diabetes, COPD, heart conditions, cancer history — simplified or guaranteed issue products exist for these situations.
🏛️ Medicaid Recipients
Need an exempt asset to cover burial costs without losing Medicaid eligibility. Irrevocable burial trust is the solution.
🎖️ Veterans
VA burial benefits ($2,000 service-connected, $300 non-service) don't cover the full cost. Fill the gap.
👵 Grandparents
Leave something behind beyond funeral costs. Cash value grows over time and can be borrowed against.
💔 People Without Savings
No emergency fund? A $10,000 policy ensures your family isn't crowdfunding your funeral.
Coverage for Marijuana Users
Yes, marijuana users qualify. Foresters PlanRight classifies marijuana as non-tobacco — you get non-tobacco rates. Washington National's simplified issue also does not auto-decline for marijuana use.
| Carrier | Marijuana Classification | Rate Impact |
|---|---|---|
| Foresters PlanRight | Non-Tobacco | Non-tobacco rates (same as non-users) |
| Washington National | Case-by-case | No auto-decline; may affect tier |
This is a significant advantage. Many traditional carriers automatically classify marijuana as tobacco use, resulting in rates 2–3x higher. Through June, marijuana users get fair rates on final expense.
Health Conditions & Underwriting
Final expense underwriting is more lenient than traditional life insurance. No blood draw, no physical exam. The three tiers (Preferred → Standard → Basic/Graded) catch most health situations.
| Condition | Typical Tier | Notes |
|---|---|---|
| Type 2 Diabetes (controlled) | Standard | A1C under control, oral meds OK |
| Type 2 Diabetes (insulin) | Basic/Graded | May qualify Standard with some carriers |
| Heart condition (2+ yrs) | Standard | Depends on severity and treatment |
| Cancer (2+ yrs remission) | Standard | Active treatment = Graded or decline |
| COPD | Standard or Graded | Severity-dependent |
| Tobacco use | Any tier at tobacco rates | Not a decline — just tobacco pricing |
| Active cancer / Dialysis / ALS | Guaranteed Issue only | Simplified issue will decline |
| Hospice / Organ transplant list | Guaranteed Issue only | 2-year graded benefit applies |
How to Choose the Right Amount
Start with actual costs in your area. Most families need $15,000–$25,000 to cover everything. Cremation-only: $10,000 is sufficient. Want to leave a small inheritance on top: $35,000–$50,000.
- Funeral with burial (Northeast): $9,000–$13,000
- Funeral with burial (Southeast): $7,000–$10,000
- Cremation with service: $4,000–$8,000
- Cemetery plot + headstone: $2,000–$7,000
- Outstanding medical bills / debts: varies
- Buffer for family expenses: $2,000–$5,000
Veterans & VA Burial Benefits
VA burial benefits are limited: $2,000 for service-connected deaths, $300 for non-service-connected. That covers a fraction of actual funeral costs. A final expense policy fills the $6,000–$13,000 gap.
| VA Benefit | Amount | What It Covers |
|---|---|---|
| Service-connected burial | $2,000 | Partial burial costs |
| Non-service burial | $300 | Almost nothing |
| VA cemetery plot | Free | National cemetery only |
| Headstone / marker | Free | Government-issued, VA cemeteries |
VA benefits + a $10,000–$15,000 final expense policy = full coverage. The VA handles the plot and marker; the policy handles the funeral, transport, and family expenses.
What to Look For Before You Buy
- Level premiums guaranteed for life — never accept a policy with increasing premiums
- Day-1 death benefit — choose simplified issue over guaranteed issue when possible
- Cash value access — ensure you can borrow against or surrender the policy
- Free riders included — Terminal Illness ADB should be auto-included at no cost
- No waiting period for accidental death — even graded policies pay full for accidents from day 1
- Independent agent — compares multiple carriers vs. a captive agent who sells one company
- Licensed in your state — verify NPN at nipr.com
- Irrevocable trust option — critical for Medicaid planning
Frequently Asked Questions
Common questions about
final expense insurance
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How much does final expense insurance cost?
Premiums depend on age, health, tobacco use, and face amount. A healthy 65-year-old non-smoker might pay $50–$80/month for $15,000 in coverage. A 75-year-old smoker with health conditions could pay $100–$150/month for $10,000. Premiums are level and guaranteed — they never increase.
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Is a medical exam required?
No. Final expense uses simplified issue underwriting — health questions only, no blood draw, no exam. Some carriers also run a prescription database check (Irix) and MIB report. Guaranteed issue products skip health questions entirely but have a 2-year graded benefit period.
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What is a graded benefit?
A graded benefit means the full death benefit isn't available in the first 2 years for natural causes. If you die of natural causes in year 1 or 2, the beneficiary receives a return of premiums paid plus 10% interest. Accidental death pays full face from day one. After year 2, the full benefit applies permanently.
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Can I use final expense for Medicaid planning?
Yes. When assigned to an irrevocable burial trust, a final expense policy becomes an exempt asset for Medicaid eligibility. It doesn't count against the $2,000 asset limit. The funeral home is named as beneficiary, and at death the trust pays the funeral home directly.
🌿
Can marijuana users qualify?
Yes. Foresters PlanRight classifies marijuana as non-tobacco, so users get non-tobacco rates. Washington National's simplified issue also does not auto-decline marijuana users. This is a significant advantage over many traditional carriers.
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What's the maximum age for coverage?
Most final expense products issue up to age 85. Foresters PlanRight Preferred and Standard tiers go to 85 (reduced face at 81+). The Basic/Graded tier caps at age 80. Washington National Level goes to 85; Graded caps at 80.
🎖️
Do veterans need this with VA benefits?
VA burial benefits are limited: $2,000 for service-connected deaths, $300 for non-service. That covers a fraction of actual funeral costs ($8,000–$15,000+). A final expense policy fills the gap. VA covers plot and marker; the policy covers the funeral itself.
📋
What conditions disqualify me?
For simplified issue: active cancer treatment, organ transplant waiting list, dialysis, ALS, hospice, or HIV/AIDS typically result in a decline. For graded/guaranteed issue, almost nothing disqualifies you — you just get the 2-year graded benefit. An independent agent can find coverage for virtually any situation.
🏛️ Government Consumer Resources
We encourage you to research life insurance independently. These government and regulatory resources provide unbiased consumer guidance:
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NJ DOBI — Life Insurance Consumer Guide
nj.gov/dobi · Buying tips, policy types, and what to watch for
NAIC — Life Insurance Buyer's Guide
naic.org · National Association of Insurance Commissioners
USA.gov — Life Insurance Information
usa.gov · Federal consumer information on life insurance
PA Insurance Dept. — Life Insurance Guide
insurance.pa.gov · Pennsylvania consumer resources
Florida DFS — Life Insurance Consumer Help
myfloridacfo.com · Florida Department of Financial Services
NIPR — Verify an Agent's License
nipr.com · National Insurance Producer Registry
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