Final-Expense Life Insurance Sales Just Jumped 32%. Do You Actually Need This Coverage?

Final-expense life insurance saw a surge in demand last year. New annualized premium rose 32% year over year to $1.38 billion in 2025, and the number of policies sold jumped 25% to 1.3 million, according to the LIMRA–Life Insurers Council (LIC) Final Expense Survey Report, which tracks sales at 30 participating carriers. That growth didn't come out of nowhere, either — it follows 16% premium growth in 2024, meaning the growth rate doubled in just two years.

So what's driving the surge — and, more importantly, should you consider buying this type of coverage? Final-expense insurance isn't the right fit for everyone, but for some people, it solves a real and fairly narrow problem: covering the cost of a funeral and other end-of-life expenses without leaving family members scrambling to pay out of pocket.

Also known as burial insurance, final-expense insurance is a small whole life policy, typically issued for $5,000 to $25,000. It's designed to pay for funeral and burial expenses, as well as medical bills and small debts that remain after the policyholder passes away.

According to the LIMRA–LIC survey, 17 of the 30 participating carriers reported sales growth of more than 10% in 2025, and eight of those saw sales climb more than 25%. The leading drivers were increased agent productivity and expanded distribution — in other words, more agents are actively marketing and selling the product to more customers. Independent agents sold 75% of the policies in the survey, insurers' affiliated sales forces sold 20%, and the remaining 5% were sold directly to consumers.

It's worth keeping the headline number in context, though. Two of the top-selling carriers accounted for an outsized share of the growth; excluding them, average sales growth was approximately 12%. LIMRA also notes that the survey is a snapshot of participating companies rather than a complete view of the U.S. final-expense market, and most carriers expect growth to cool to a moderate 2% to 10% in 2026.

Dean Lambert, executive director of the Life Insurers Council, noted in the LIMRA–LIC release that final-expense insurance "offers important protection for lower-income Americans, particularly seniors" — a reminder of who this product is actually built to serve.

Final-expense insurance is built around a fairly specific buyer: someone who is older (many carriers issue these policies to applicants roughly 50 to 85), may have health conditions that make traditional life insurance hard to qualify for, and wants to make sure funeral costs don't become a burden for their family. If that sounds like you, BestMoney's guide to life insurance for seniors walks through how final-expense coverage stacks up against term and whole life options at older ages.

This type of insurance doesn't usually make sense for:

• Younger, healthy adults who can qualify for far more coverage through term life insurance at a lower cost per dollar of coverage.

• Anyone trying to replace lost income for a spouse or dependents — the face amounts are simply too small for that purpose.

• People who already have adequate life insurance through other policies and just need to check whether their existing coverage would handle end-of-life costs.

If you fall into one of the groups final-expense insurance was built for — an older adult without existing coverage, or someone who's been declined for traditional life insurance because of a health condition — it's worth a closer look. If you don't, it's worth ruling out before you buy, since overlapping or duplicate coverage is a common and avoidable expense.

Nearly all final-expense policies fall into one of two underwriting categories, and the difference can affect both what you pay and how quickly you can get approved. Per the LIMRA–LIC data, 76% of 2025 sales were simplified-issue policies, with an average face amount of $15,344, while the remaining 24% were guaranteed-issue policies, averaging $11,299.

• Simplified-issue policies require you to answer a short list of health questions but skip the medical exam. Approval is typically fast (sometimes same-day), and premiums are lower than guaranteed-issue policies because the insurer has at least some health information to work with.

• Guaranteed-issue life insurance doesn't involve any health questions, so you can't be declined for medical reasons. However, that guarantee comes at a cost: higher premiums for the same face amount, and often a "graded" death benefit — meaning if you pass away from natural causes within the first two to three years, your beneficiaries may only receive a refund of premiums paid rather than the full benefit.

*Among the 30 carriers in the LIMRA–LIC 2025 Final Expense Survey.

If you can qualify for simplified-issue coverage, it's almost always the better value. Guaranteed-issue is typically only worth the higher cost if you have a significant health condition that makes you ineligible for a simplified-issue plan.

Final-expense insurance is worth considering if:

• You're older and want to lock in coverage before health issues make traditional life insurance unaffordable or unavailable.

• You specifically want funds to cover funeral and burial costs and don't need a larger death benefit.

• Your family would face real financial strain covering end-of-life costs on short notice. The National Funeral Directors Association (NFDA) puts the national median cost of a funeral with viewing and burial at $8,300 ($9,995 with a burial vault) and a funeral with cremation at $6,280, based on its most recent 2023 price study — and those figures don't include a cemetery plot, headstone, or flowers.

• You want a straightforward application process without a medical exam, and you're comfortable paying higher premiums in exchange for convenience.

“Having to put $10,000 or $20,000 in unexpected bills on a credit card during the worst time of someone's life can actually set them back on other financial goals, like saving for a house or buying a business. Suddenly having to cover the high costs associated with dying can create a significant financial burden,” explains Gerstenberger.

It makes less sense when you're younger and in reasonably good health. In that case, a term life insurance policy will typically get you far more coverage for a similar or lower premium, because the insurer only covers a defined period rather than your entire life.

Gerstenberger also discourages this type of coverage if you already have life insurance or funds set aside for your final arrangements.

“If you have significant assets and money your family can get to quickly and easily within a few days of your passing, final expense insurance is most likely not for you,” Gerstenberger explains.

“Final-expense insurance can be valuable when someone's health has narrowed their choices. It can be an expensive shortcut when it has not,” adds Lim.

Before buying another policy, check whether you already have enough coverage elsewhere by comparing the death benefits on your current policies with your expected final expenses.

With a market growing this quickly, more insurers and agents are actively competing for final-expense buyers — which is good news for shoppers, but it also makes comparing quotes particularly important. Here's what to do before you buy a final-expense policy.

1. Find out whether the policy is simplified-issue or guaranteed-issue. If it's guaranteed-issue, get the graded-benefit period in writing.

2. Compare the face amount to your actual expected costs. NFDA's 2023 medians range from $6,280 for a funeral with cremation to $9,995 for a burial with a vault — before cemetery costs — so make sure the policy would realistically cover the arrangements you want.

3. Confirm the length of your free-look period. Every state requires one, and it lets you cancel for a full refund if the policy doesn't meet your needs. Ten days is a common minimum, but some states require longer windows — California, for example, requires at least 30 days for senior buyers, according to the National Association of Insurance Commissioners' (NAIC) state-by-state chart.

4. Get quotes from multiple insurers rather than buying from the first agent who reaches out — final-expense pricing can vary meaningfully between carriers for the same coverage.

5. Look beyond final-expense plans. “Compare final-expense policies with traditional term and permanent life insurance, too. A lower monthly premium doesn't necessarily mean you're getting the best value over time,” explains Lim.

Interested in comparing current options side by side? BestMoney's roundup of the best burial insurance companies compares final-expense carriers directly, and our life insurance comparison tool can come in handy if you're weighing final-expense coverage against other types of life insurance.

Is final-expense insurance the same as burial insurance?

Yes. The two terms are generally used interchangeably for small whole life policies meant to cover funeral and end-of-life costs. It's different from preneed insurance, which is typically bought through a funeral home to prepay specific arrangements. With a final-expense policy, the payout goes to your beneficiary, who can use it for whatever bills come up.

How much final-expense coverage do I need?

Start with the arrangements you'd actually want. NFDA's national medians are $8,300 for a funeral with viewing and burial and $6,280 for a funeral with cremation, and cemetery costs come on top of that. Add any medical bills or small debts you expect to leave behind. For context, the average 2025 policy was about $15,300 for simplified-issue coverage and $11,300 for guaranteed-issue.

Can I be turned down for final-expense insurance?

With a simplified-issue policy, yes — your answers to the health questions can lead to a decline or a higher rate. A guaranteed-issue policy can't turn you down for health reasons, but it usually costs more and comes with a graded death benefit during the first two to three years.

Does a final-expense policy expire?

No. Because it's a whole life policy, coverage is designed to last for the rest of your life as long as you keep paying premiums — unlike term life insurance, which ends after a set number of years.

Final-expense insurance is having a moment, but a hot market isn't a reason to buy. The coverage is built for a narrow job — paying for a funeral and small end-of-life bills — and it does that job well for older adults, people whose health rules out traditional coverage, and families without savings earmarked for final arrangements. If you're younger, healthy, or already have enough life insurance or accessible savings, a term policy or your existing coverage is likely the better value. Either way, compare several carriers, confirm whether the death benefit is graded, and size the policy to the arrangements you actually want.