As we grow older, we begin to think more about the legacy we leave behind — not just in memories, but in financial matters too. For many individuals in their 60s, especially those who have recently enrolled in Medicare, the question of how end-of-life costs will be covered often comes to the forefront.
If you’ve never considered life insurance before, you’re not alone. Many people reach retirement age without a policy, either because they didn’t think they needed one, had coverage through an employer, or simply put it off. But as Medicare doesn’t cover funeral or burial costs, final expense life insurance is becoming an option worth exploring — not from a place of fear, but from a place of peace of mind.
What Is Final Expense Life Insurance?
Final expense insurance, sometimes called burial insurance or funeral
insurance, is a type of whole life insurance designed to cover end-of-life costs. Policies typically range from $5,000 to $25,000 in coverage and are
meant to help pay for:
- Funeral services
- Burial or cremation
- Caskets or urns
- Headstones
- Unpaid medical bills
- Small personal debts
This kind of policy is generally easier to qualify for than traditional life insurance, especially for individuals in their 60s or older who may have
health concerns.
Why It Matters After 60
Many Medicare beneficiaries are surprised to learn that Original Medicare does not cover funeral or burial expenses . Even if you have a Medicare Advantage plan, it’s rare for these policies to include any type of end-of-life
coverage. According to the National Funeral Directors Association, the median cost of a funeral with burial in 2024 was over $8,300. When you
factor in flowers, a headstone, transportation, and other services, the costs can easily exceed $10,000.
For those living on a fixed income — whether it’s Social Security, a pension, or retirement savings — these expenses can become a financial
burden on surviving family members. Final expense life insurance offers a way to ensure your loved ones aren’t left struggling to cover those costs.
Who Should Consider Final Expense Life Insurance?
You may want to think about final expense coverage if:
- You’re in your 60s and don’t have a life insurance policy
- You recently enrolled in Medicare and are reviewing your financial preparedness
- You want to ease the financial burden on your spouse or children
- You have limited savings set aside for end-of-life costs
- You’re concerned about leaving unpaid medical or personal bills behind
These policies are particularly relevant for those who’ve outlived group coverage from a former employer or who never purchased a term or whole
life policy earlier in life.
What to Look for in a Policy
If you decide to explore final expense life insurance, here are a few key features to consider:
- Guaranteed Issue vs. Simplified Issue : Guaranteed issue policies don’t require a medical exam but usually have a two-year waiting period before full benefits are paid. Simplified issue policies ask basic health questions and may offer immediate coverage.
- Fixed Premiums : Look for policies that offer guaranteed level premiums that won’t increase with age.
- Whole Life Coverage : Most final expense plans are whole life policies, which means they don’t expire as long as premiums are paid.
- Payout to Beneficiaries : The death benefit is typically paid quickly and directly to your chosen beneficiary, tax-free.
Common Concerns and Misconceptions
- “I’m too old to qualify.” Many final expense policies are designed for individuals up to age 85, and some offer guaranteed acceptance regardless of health.
- “I don’t want to go through a medical exam.” Most plans for people in their 60s don’t require an exam, just a few basic health questions.
- “I have enough saved.” That’s great! But savings can be delayed in probate or inaccessible during stressful moments. A life insurance payout can help bridge that gap.
- “It’s too expensive.” Premiums are generally affordable for individuals in their early-to-mid 60s, especially for smaller policy amounts like $10,000. The earlier you apply, the lower the monthly cost is likely to be.
A Gentle Reminder: It’s Not Too Late
If you’re in your 60s and have never had life insurance, now might be the right time to revisit the idea — not out of worry, but out of care for those
who matter most to you.
Whether your goal is to cover basic funeral expenses or leave behind a small legacy, final expense life insurance can provide that reassurance. It’s
not about preparing for the worst — it’s about offering comfort, control, and clarity in a time when your loved ones will need it most.
You’ve worked hard to protect your health through Medicare. Taking one more step to protect your family’s financial well-being can be just as meaningful.
Final Thoughts
Final expense insurance isn’t for everyone, but for many Medicare
beneficiaries in their 60s, it’s a gentle, affordable way to close the financial loop. It’s never too late to plan ahead — and sometimes, the smallest steps
make the biggest difference.
FAQs
I’m in my 70’s, would I still be able to get a burial policy?
Yes, there are companies that will insure individuals up to age 85.
Do the premiums increase with age?
Sometimes, yes, depending upon the company. But, you can get a
policy with a fixed premium.
Do I have to take a physical exam?
That depends upon the company but if you are in good health it may pay to take one because you might enjoy a lower premium.
