The Facts, Figures, and Real Financial Impact of Final Expense Planning

Planning ahead for life’s final chapter is more than a thoughtful gesture—it’s responsible financial planning. When a loved one dies, families face not only emotional grief but often real financial strain. Hidden and growing costs can put pressure on savings and even leave families with unexpected debt. Understanding the reality of these expenses—and how final expense planning can help—starts with the numbers.

The Rising Cost of Dying

End-of-life costs in the United States are substantial and growing.

  • A 2025 analysis estimates that the total average cost associated with a death—including final-year medical expenses and funeral costs—is about $88,300. This includes roughly $80,000 in medical costs during the last year of life and about $8,300 for a traditional burial with viewing. MoneyGeek.com
  • Funeral costs alone average between $6,280 and $8,300 depending on the service type (cremation with services versus burial with viewing). Aflac+1
  • Over time these costs have increased dramatically. In 1960, the average funeral cost was just over $700, but by 2021 it was near $7,848. Funeral Advantage

Other possible final expenses—like cemetery plots, headstones, or travel for family—can add thousands more. Transamerica

These figures make clear why financial preparation is important. Without planning, families often must pay these costs out-of-pocket during one of the hardest moments of their lives.

Final Expense Insurance: A Practical Solution

Final expense insurance is a type of life insurance designed to help cover funeral and other end-of-life expenses. It is commonly marketed to older adults and retirees, though anyone can consider it as part of comprehensive planning.

Policy statistics:

  • In 2022, the final expense life insurance market accounted for more than 783,000 policies sold with an average face amount near $935 per policy (reflecting many low-benefit policies sold). LOMA
  • Policies such as these typically range in benefit amounts of $5,000 to $25,000, sufficient to cover many funeral and burial costs, and premiums are commonly quoted at less than $1 per day for smaller policies. True Help Medicare

Cost examples (nationwide averages):

  • A $10,000 final expense insurance policy might roughly cost between $30 and $150 a month, depending on age and gender. Final Expense Benefits
  • Average rates for a $25,000 policy illustrate how age affects cost: at age 45, an annual premium might be roughly $673 for a female and $790 for a male; by age 65, those figures increase to about $1,326 and $1,734 per year. Insure.com

These examples show that earlier planning can lower costs and reduce strain on the family later.

Stress, Burden, and What Happens Without Planning

Financial stress following a loved one’s death isn’t hypothetical. Even with an estate, families may still struggle:

  • Many households do not carry adequate life insurance coverage. One analysis found that about 40 percent of U.S. adults need more life insurance than they have to cover major end-of-life costs. MoneyGeek.com
  • Final-year medical costs often mean families pay thousands out-of-pocket—even for those on Medicare—on top of funeral costs. MoneyGeek.com

This combination of medical, funeral, and incidental expenses underscores why planning matters.

Case Example: A Family’s Experience

Consider two hypothetical families to illustrate the impact:

Case Study 1: The Martins

Mr. Martin passed away unexpectedly at age 78. Without final expense planning in place, his daughter had to cover:

  • Funeral with burial and viewing: $8,500
  • Cemetery plot and headstone: $4,200
  • Last-minute travel expenses for relatives: $1,300

Total expenses exceeded $14,000, a financial strain that depleted emergency savings and required credit card use.

Case Study 2: The Lees

Mrs. Lee purchased a final expense policy with a $15,000 death benefit several years earlier. When she passed at age 82, her family used that benefit to:

  • Pay for funeral and burial services
  • Cover cemetery plot and memorial costs
  • Assist with outstanding medical bills

Her family was able to focus on honoring her life rather than worrying about how to pay for the costs.

Why It Matters

Final expense planning—even with relatively modest coverage—can:

  • Reduce financial stress for survivors during grief
  • Ensure choices align with your wishes rather than purely financial constraints
  • Preserve savings and retirement funds for family needs

Planning for life’s final chapter is not about fear; it’s about responsibility, care, and peace of mind.

Disclaimer: This article is for informational and educational purposes only and does not constitute financial, legal, or insurance advice. Coverage options, policy features, benefits, costs, and eligibility vary by insurer, state, age, health, and individual circumstances. Examples and scenarios provided are hypothetical and for illustrative purposes only. Readers should consult with a licensed insurance professional or financial advisor to evaluate their specific needs before making any insurance or financial decisions. No guarantees are made regarding policy approval, rates, or benefits.

Back to blog