Understanding the Costs: What Influences Final Expense Insurance Premiums?

Introduction When shopping for final expense insurance, one of the most common questions is: “How much will it cost?” While final expense policies are designed to be affordable, premiums can vary widely based on several personal and policy-specific factors. In this blog, we’ll break down what influences final expense insurance pricing — and how Unlimited Insurance helps you find the most cost-effective coverage without sacrificing protection.

What Is Included in the Cost of Final Expense Insurance Premiums?

Your premium is the monthly amount you pay to keep your policy active. In return, your beneficiaries receive a lump-sum payout when you pass away. Final expense premiums are typically fixed — meaning they won’t increase as you age or if your health changes — but the starting price can vary depending on:

• Your age

• Your gender

• Your health

• Tobacco use

• Coverage amount

• Type of policy (simplified vs. guaranteed issue)
  

Factor 1: Age at Time of Application

Why it matters: Insurance companies assess risk based on life expectancy. The older you are, the higher your monthly premium.

Age	Approx. Monthly Premium (for $10,000)
50	$30 – $45
60	$40 – $60
70	$55 – $85
80	$75 – $130

Tip: Applying sooner locks in a lower rate for life.

Factor 2: Gender

Why it matters: Statistically, women live longer than men, which usually results in slightly lower premiums.

Example: A 65-year-old woman might pay $48/month, while a man of the same age could pay $58/month for the same coverage.

Factor 3: Health Conditions

While most final expense policies don’t require a medical exam, they do include health questions. Carriers look for:

• Heart disease

• Diabetes

• Cancer history

• COPD or lung conditions

• Chronic kidney disease
  

Simplified issue policies offer better rates for people in average or good health. Guaranteed issue policies are available if health issues would prevent approval, but they come with higher premiums and graded death benefits.

Factor 4: Tobacco Use

Why it matters: Tobacco users are seen as higher risk, which means they typically pay more — often 20–40% more.

Tip: If you’ve quit smoking for over 12 months, let your agent know — some carriers will classify you as a non-smoker.

Factor 5: Coverage Amount

Why it matters: The more coverage you want, the higher the premium. Final expense policies usually range from $5,000 to $50,000.

Coverage Amount	Sample Monthly Premium (Age 65, Female)
$10,000	$45 – $50
$20,000	$85 – $95
$30,000	$125 – $135

Tip: Don’t overinsure. Calculate expected funeral costs and debts, then add a cushion for peace of mind.

Factor 6: Policy Type

Simplified Issue: Better pricing, some health questions required, often first-day full coverage.

Guaranteed Issue: No health questions, higher premiums, 2–3 year waiting period for full payout.

Tip: If you qualify for simplified, it’s almost always the better value.

How Unlimited Insurance Helps You Save

At Unlimited Insurance, we don’t offer just one product — we compare rates and policies from multiple carriers to help you:

• Find the best deal based on your health and age

• Access exclusive rates from top-rated companies

• Avoid unnecessary coverage or upselling
  

Plus: Our agents provide real-time, honest advice to help you choose based on budget — not commission.

Ways to Lower Your Final Expense Insurance Premium

• Apply at a younger age

• Opt for simplified issue (if eligible)

• Choose only the coverage you need

• Pay annually instead of monthly (some carriers offer discounts)

• Maintain a healthy lifestyle
  

Frequently Asked Questions

Is final expense insurance more affordable than traditional life insurance?

Yes. Final expense policies are smaller in value and simpler to obtain, which makes them more cost-effective for covering funeral and end-of-life costs.

Are premiums ever refunded?

No, premiums are not refundable unless the policy includes a return-of-premium rider. However, the full death benefit is paid out once eligible.

Will my premiums go up as I age?

No. Once your policy is active, premiums are locked in for life.

Conclusion

Final expense insurance is designed to be simple and affordable — but understanding what drives the cost helps you make smarter choices. By working with Unlimited Insurance, you gain access to multiple carriers, competitive rates, and trusted advisors who help you find coverage that fits your life and your wallet.

Get your free quote today and discover how affordable peace of mind can be.