Final Expense Fund

What Does Final Expense Fund Mean?

A final expense fund is a life insurance policy designed to cover the insured’s final expenses, including payments for funeral services, cemetery fees, and other posthumous costs.

This type of fund is also referred to as a clean-up fund.

Insuranceopedia Explains Final Expense Fund

A final expense fund can be structured as a standalone insurance policy, a component of another policy, or combined with another type of life insurance. Its primary purpose is to provide funds to cover the death-related expenses of the insured. Typically, these policies have lower face values and more straightforward approval processes compared to standard life insurance policies.