Average final expense insurance rates by age, gender and life stage

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Final expense insurance is a simple option to help you plan for end-of-life expenses. Because it’s either simplified issue or guaranteed issue life insurance, it requires no medical exam.

Purchasing a traditional life insurance policy in your younger years is generally more cost-effective, but final expense insurance is a great option for people who need the added financial security later in life and don’t qualify for traditional policies. 

The cost of final expense insurance goes up as you age, as with all life insurance policies. Gender also affects rates. At 45 years old, the average cost of a $25,000 policy is $673 a year ($56 a month) for a female and $790 ($66 a month) for a male.

At 65, those average rates climb to $1,326 a year ($111 a month) for a female and $1,734 a year ($145 a month) for a male.

Below we’ll provide sample rates for final expense insurance for a variety of ages and for male and female applicants to show how life insurance rates change in each life stage.

Average final expense rates by gender 

Insurance rates are based on a number of factors, age and gender being two major components. Women typically live longer, so their rates are lower. For example, here are the annual rate differences for men and women for a $25,000 policy:

Average annual premium for coverage $25,000

You’ll note that as they approach their late 50s, men pay almost $300 more than women each year, and that reaches $400 more at age 65.

Average final expense rates by age 

As you age premiums go up, regardless of your gender. Age increases the risk of health problems, and the later you buy, the closer you are to your life expectancy. 

Here’s a look at sample final expense insurance rates by age from 45 through 65 years old.

The chart below shows how much the average annual premium increases every year. That’s how much more you’ll pay than you would have if you’d applied the year before.

You’ll see a few years where the premiums level off and then rise again, but it’s an overall steady increase.

Average final expense rates by life stage 

Final expense insurance is generally not available to younger applicants. That’s because it’s specifically designed for those in later life stages who don’t qualify for traditional life insurance or just want a small death benefit to cover final expenses.

However, like all life insurance policies, the sooner you buy the less you will pay. Although you might not yet be thinking about final expenses in middle age, buying then will save you a lot of money.

This chart shows the average monthly price range for a $25,000 final expense policy at three life stages.

If you look at the first chart above, you’ll note that a 45- to 54-year-old woman can expect to pay between $673-$872 annually in premiums, while a man of the same age is looking at $790-$1,075.

Premiums jump up a bit in your 50s and early 60s – a 55-64-year-old woman is looking at premiums of $900-$1,271 while her male counterpart is looking at a cost of $1,118-$1,680.

Rates at retirement age, typically 65,  reach $1,326 for a woman and $1,734 for a man. Rates will climb from there.

How does gender affect final expense insurance rates? 

Men will pay more for a final expense policy because their life expectancies are shorter. Life insurance actuaries calculate premiums based on risk, and the longer you live the less risky it is to insure you, which is why women pay less.

Additionally, statistics show that men tend to have riskier professions, take more risks in daily life and also have health problems like heart attacks earlier in life.

How does age affect final expense insurance rates? 

As you age, final expense insurance rates go up. You’re more likely to develop health conditions and, simply put, your remaining life expectancy is shorter. This means if you buy a life insurance policy at an older age, the insurer will be collecting premiums for a shorter time period and may have to pay out a claim sooner. For these reasons, it will adjust rates accordingly for profit.

Age is a major factor in all life insurance applications, which is why traditional life insurance may become difficult to obtain as you get older. That’s why a lot of people turn to a final expense policy as an easier-to-obtain option. 

How to compare final expense insurance quotes by age and gender 

When you shop for final expense insurance – or any insurance for that matter– compare rates and companies. Look at different death benefit amounts and play around with online calculators to find the fit that’s best for you. 

“You need to budget for…needs including funeral and associated expenses, which are not cheap, medical bills and other end-of-life expenses. If you already prepared for your funeral and the end of your last days and saved for those, you can subtract your savings from your funeral budget, which will give you a smaller number,”  says Haibo (Stephen) Yao, assistant professor of Insurance & Risk Management at the University of Central Arkansas.

Simplified issue policies are an option for younger, healthier people – they have a few medical questions and a short application. 

Guaranteed issue policies are best for older people or those with health challenges, and people who have had a hard time getting traditional insurance. There’s no medical aspect to the application, and a policy is basically guaranteed. Just look out for any waiting periods that may apply.

The younger you are when you buy any insurance policy, the cheaper it will be. Planning ahead is a key factor.

Tips for shopping for final expense insurance by age and gender 

When you shop for final expense insurance, keep a few important things in mind.

First, if you’re young and healthy, you might want to look into traditional whole life insurance. It has much higher death benefit limits and can build up more cash value throughout your life. Premiums are much more affordable earlier in life. If you’re going to be paying premiums for a longer number of years, you might as well get a high payout for your loved ones.

Final expense insurance is geared toward older people, people who have some health challenges and people who have not financially prepared for end-of-life expenses. 

“These policies are designed for seniors who only need a small amount of coverage and who want to get such coverage at [the] lowest cost. It is more important for those who never saved for their funerals,” Yao says.

Although final expense policies are available at age 45, a healthy person at that age may get a better deal with traditional whole life.

There are carriers who specialize in high-risk policies for people who face challenging issues as they age, or younger people with health conditions that have excluded them from traditional life insurance. Other carriers focus on the best rates for seniors.

To get a better rate on final expense insurance as you age, look for the most competitive quotes from a variety of carriers. Only purchase the amount you need to cover your anticipated end-of-life costs.

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