What Does Final Expense Fund Mean?
A final expense fund refers to a life insurance policy meant to cover the insured’s final expenses. Coverage includes payments for funeral services, cemetery fees, and other posthumous expenses.
A final expense fund may also be called a clean-up fund.
Insuranceopedia Explains Final Expense Fund
A final expense fund may be either a single insurance policy, a part of the policy, or one combined with another type of life insurance policy. Its only purpose is to fund the estate with money to cover death-related expenses of the insured. Typically, these policies have much lower face values and easier approval procedures in comparison to standard life insurance policies.