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. Most people set up these funds by buying a small final expense life insurance policy, with face values that usually fall between $5,000 and $25,000.

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. These policies are sometimes called burial and funeral insurance, and they’re often bought by older adults who can’t qualify for standard policies.