The main purpose of final expense insurance is to cover the cost of a funeral and related expenses after a person passes away.
The cost of funerals and burials can end up being a lot to pay all at once. Generally, next of kin end up paying no less than $5,000 to bury their loved one, and usually, final expenses end up being closer to $10,000. If the recently deceased person didn’t leave behind enough money to cover the cost, the surviving family has to figure out how to pay for it. To help their families avoid the financial burden associated with paying for a funeral, many people buy a final expense insurance policy to cover their funeral expenses.