Final Expense vs. Term Life Insurance: Which One Is Right for You?
By OnePoint Insurance Agency – proudly serving Georgia and beyond
Why This Decision Matters
Losing a loved one is hard enough. But when that grief is compounded by funeral costs, medical bills, or an unpaid mortgage, the pain multiplies. Choosing the right life insurance isn’t just about money—it’s about peace of mind and protecting your legacy.
Two popular options—Final Expense and Term Life Insurance—may sound similar but serve very different needs. Let’s break them down.
What Is Final Expense Insurance?
Also called burial or funeral insurance, Final Expense Insurance is a type of whole life policy that covers end-of-life costs.
Key Features:
Coverage: $2,000 to $50,000
Medical Exam: Rarely required
Policy Length: Permanent (lifetime coverage)
Use: Funeral costs, medical bills, legal fees, minor debts
Best for:
Seniors ages 50–85
Fixed-income individuals
Those who might not qualify for traditional life insurance
Heads-up: This is not income replacement. It’s meant for final expenses only.
What Is Term Life Insurance?
Term Life Insurance provides coverage for a set number of years—like 10, 20, or 30. If the insured dies during the term, the policy pays out a tax-free death benefit. If they outlive the term, coverage ends unless renewed or converted.
Key Features:
Coverage: $50,000 to $5,000,000+
Medical Exam: Sometimes required, but many no-exam options exist
Policy Length: 10, 20, or 30 years
Use: Income replacement, mortgage payoff, child education, business protection
Best for:
Parents of young kids
Homeowners
Entrepreneurs
Primary earners in their prime working years
Note: Term policies don’t build cash value. If you outlive it, it expires.
Quick Comparison Table
Final Expense vs. Term Life Insurance – Quick Comparison
Coverage Amount
Final Expense: $2,000 – $50,000
Term Life: $50,000 – $5,000,000+
Policy Length
Final Expense: Lifetime (permanent)
Term Life: 10, 20, or 30 years (temporary)
Medical Exam Required?
Final Expense: Rarely needed
Term Life: Often not required for lower coverage
Cash Value Accumulation
Final Expense: Yes (small amount)
Term Life: No
Primary Purpose
Final Expense: Covers funeral costs, medical bills, and minor debts
Term Life: Replaces income, protects against large debts, supports dependents
Cost per $1,000 of Coverage
Final Expense: Higher
Term Life: Lower
Real-Life Scenarios
Lillian, 74 – Retired in Augusta, GA
She gets a $15,000 final expense policy with no exam. Six years later, it pays for her funeral—no burden on her kids.
Marcus, 36 – Father of 3 in Marietta, GA
Buys a $750,000 term policy for under $30/month. Dies in an accident 12 years later. His family is financially secure.
Linda, 53 – Business Owner in Columbus, GA
Gets both: $500,000 term life and $20,000 final expense. One protects her business and family, the other her funeral.
Common Misconceptions
“I’m too old to get covered.”
False. Many final expense plans accept applicants up to 85.
“My job’s life insurance is enough.”
It usually ends when you quit or retire—and rarely covers enough.
“Term is only for the rich.”
Not true. $500,000 policies can cost under $1/day for healthy applicants.
“Term always needs a medical exam.”
Not anymore. Many insurers offer no-exam options up to $1 million or more.
How to Choose the Right Policy
Ask yourself:
Do I need to replace income or just cover funeral costs?
Do I want the lowest premium or permanent coverage?
Should my policy build cash value?
What financial gaps would I leave behind?
Still unsure?
Click here to schedule a free consult »
Or call us now at 770-884-8117.
How Claims Are Paid
Claim is filed
Death certificate submitted
Processed in 7–14 business days
Payout via check or direct deposit
Tip: Final Expense usually pays out faster due to simpler underwriting.
The OnePoint Advantage
Why do families across Georgia and beyond trust us?
No-pressure consultations
Bilingual agents
Dozens of A-rated carriers
Annual policy check-ins
Full claim support
Let’s Secure Your Legacy
Protecting your loved ones shouldn't be confusing or expensive. Whether you need $10,000 or $1 million in coverage, OnePoint Insurance is here to help.
Call us at 770-884-8117 or Contact OnePoint Here »
