If you’re shopping for life insurance, you’ll probably come across both term life and final expense insurance. They sound similar — but they’re designed for totally different needs.
Let’s break it down.
📄 What Is Final Expense Insurance?
- Permanent coverage (doesn’t expire)
- Small face amounts: $5,000–$25,000
- Covers funeral costs, small debts
- No medical exam, easy approval
📅 What Is Term Life Insurance?
- Temporary coverage (10, 20, 30 years)
- Higher coverage: $100,000–$1M+
- Designed to replace income or cover large debts
- May require medical exam, but cheaper per $1,000
📊 Side-by-Side Comparison:
| Feature | Final Expense | Term Life |
|---|---|---|
| Coverage | $5K–$25K | $100K–$1M+ |
| Duration | Lifetime | 10-30 years |
| Purpose | Funeral, final bills | Income/mortgage protection |
| Exam Required? | No | Sometimes |
| Cost | Higher per $ | Lower per $ |
🔧 Which One Is Right for You?
- Over 50 with no major debts? Final expense.
- Family, mortgage, or income to protect? Term life.
💼 Final Takeaway:
They serve different purposes — and sometimes, the smartest move is having both.