Final expense insurance; also known as burial insurance or funeral insurance, is one of the most practical and emotionally impactful products in the life insurance industry. It provides a straightforward solution for covering funeral and end-of-life costs. We will go over Final Expense Plan basics so you can get a general idea of the value of these plans.
This guide breaks down what agents need to know to confidently sell final expense insurance; from plan types and terminology to underwriting insights and a step-by-step sales process.
Final Expense Insurance
Final expense insurance is a type of permanent whole life insurance with a low death benefit, typically between $2,000 and $50,000. It’s designed to pay for funeral expenses, medical bills, debts, and other end-of-life costs. This helps provide peace of mind for the individuals who purchase the coverage and their loved ones.
Key Characteristics:
- Whole life insurance product (not term)
- Level premiums for life
- Guaranteed death benefit (as long as premiums are paid)
- No medical exam required (simplified issue or guaranteed issue)
- Cash value accumulation
Final Expense Terminology
Understanding the lingo is important when discussing plans with clients:
| Term | Meaning |
|---|---|
| Face Amount | The death benefit amount the beneficiary receives |
| Simplified Issue | Underwriting involves health questions but no medical exam |
| Guaranteed Issue | No health questions, approval is guaranteed |
| Level Benefit | Full death benefit from day one |
| Graded Benefit | Partial death benefit for the first 2-3 years |
| Modified Benefit | Death benefit increases over time or excludes certain causes initially |
| Cash Value | A savings component that grows over time (part of whole life) |
Watch a quick YouTube video on Life Insurance Basics
Final Expense Plan Types
Final expense plans generally fall into three categories:
1. Level Benefit Plans
- For healthy clients who qualify based on health questions
- Immediate full death benefit
- Lowest premiums
2. Graded Benefit Plans
- For clients with moderate health issues
- Limited death benefit in first 2–3 years (often 30%-100% of premiums refunded + interest)
- Full benefit kicks in after graded period
3. Guaranteed Issue Plans
- No health questions
- Suitable for high-risk clients (cancer, dementia, etc.)
- Always have a 2-year waiting period
Underwriting – What Clients Can Expect
Final expense underwriting is more lenient than traditional life insurance. Most policies are simplified issue, which means:
- No medical exam
- Short health questionnaire
- Carriers may use tools like:
- Prescription history databases
- MIB (Medical Information Bureau)
- Height and weight tables
- Phone interviews
Health Conditions That May Affect Plan Type
| Condition | Impact |
|---|---|
| Controlled hypertension or cholesterol | Usually qualifies for level benefit |
| Diabetes with no complications | Often still qualifies for level benefit |
| COPD, CHF, recent cancer | May only qualify for graded or guaranteed issue |
| Terminal illness or dementia | Guaranteed issue only |
Agents: It is important to ask questions that can bring up common risk flags to prepare the best plan quote for your client to ensure they receive the coverage they need.
Sales Process: From Lead to Close
1. Lead Generation
- Direct mail, Facebook, Google ads, or warm referrals
- Focus on individuals aged 50–85
- Consider grass roots community marketing, telemarketer or aged leads if on a budget
2. First Contact & Rapport Building
- Start by actively listening to them and getting to know them
- Focus on protection and peace of mind, not insurance jargon
- Example: “Many of my clients want to make sure their families aren’t left with bills or funeral costs. Do you have coverage for that?”
3. Fact-Finding & Budgeting
Ask about:
- Age, health conditions, and medications
- Existing coverage
- Budget comfort level (not just affordability)
4. Present the Plan Options
- Present a few options that fall within their budget; an online quoting tool like Best Plan Pro makes this easy
- Explain the difference between level, graded, and guaranteed issue plans
- Emphasize guaranteed premium amounts and lifelong coverage
5. Application Process
- Most carriers offer e-apps, telephonic apps, or paper apps
- Walk the client through health questions and disclosures
- Submit application
6. Follow-Up and Delivery
- Confirm approval
- Review the policy with the client
- Schedule an annual check-in
- Ask for referrals!
Learn more about Final Expense Sales 101
A Few Tips for Agents
- Educate first, sell second: Although clients make the purchase based on emotion, they need to feel informed and confident in their decision.
- Practice transparency: Ensure clients understand graded periods or waiting periods upfront.
- Respect the budget: Because many clients live on a fixed income, it is not a good idea to sell them a policy they cannot afford. This can lead to loss of trust between you and the client and policy cancellation and a chargeback.
- Focus on family protection: Present the policy purchase as a layer of asset protection and legacy, not just an expense.
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Final expense insurance offers security and simplicity for clients as well as an opportunity for agents. By mastering the product, understanding client needs, and delivering with compassion, you’ll not only increase your sales but also build a business rooted in service and trust.