Final expense insurance for people over 65

Why people over 65 buy final expense coverage

The main reason is that government benefits barely touch funeral costs. Medicare covers health care, not funerals, and the Social Security death payment is a one-time $255.

NFDA's 2023 median for a funeral with viewing and burial was $8,300, and $6,280 with viewing and cremation. Those figures exclude the cemetery, headstone and cash-advance items, so the real bill is often higher.

Final expense insurance pays a lump sum to your beneficiary, usually within days or weeks of a claim. That money can pay the funeral home before your estate is settled.

What you can get at 65 to 74

All four policy types remain open: level, graded, modified and guaranteed issue. Mutual of Omaha's Living Promise level plan issues to 85 and its graded plan to 80, and Gerber Life's guaranteed policy issues to 80.

Face limits shrink with age at many carriers. Transamerica caps its Immediate Solution at $30,000 for ages 66 to 75, and its graded Easy Solution at $25,000.

If you are a veteran, the VA provides burial in a national cemetery with a grave marker at no charge, according to the FTC. That can lower the amount of insurance you need, though the family still pays for the funeral itself.

Graded benefits after 65

A graded policy pays a reduced benefit if you die of natural causes during its first two or three years. After that, it pays the full face amount.

At least one carrier shortens the period at 65. American Amicable's return-of-premium plan refunds premiums plus 10% for three years at issue ages 50 to 64, but for two years at issue ages 65 and over.

Accidental death is typically paid in full from day one on graded plans, including Mutual of Omaha, Gerber Life and American Amicable. Read the full rules in our waiting periods guide.

Choosing a coverage amount

Decide on burial or cremation first, since that is the biggest cost swing. NFDA projects the U.S. cremation rate at 63.4% for 2025, so many families now plan around the lower cremation figure.

Add expected cemetery charges, a small cushion for medical bills, and any debts you do not want family to handle. For many people over 65, that totals $10,000 to $20,000.

Remember that a larger policy has a larger premium for life. Pick an amount you can keep paying on a fixed income, because a lapsed policy pays nothing.

Riders worth asking about after 65

An accelerated death benefit rider lets you take part of the benefit early if you become terminally ill or need nursing home care. Several level plans include it at no extra premium.

Mutual of Omaha's level Living Promise rider pays early for a terminal illness expected to cause death within 12 months, or a nursing home stay of 90 days or more expected to last for life. Transamerica's Immediate and 10-Pay Solutions include a similar rider with a nursing home benefit, subject to state availability.

Apply while you are independent. Transamerica says its nursing home rider is not available if you need help with daily living activities when you apply. Money taken early reduces what your family receives later.

Tips for buying after 65

Get quotes before your next birthday. The rate is based on your age at issue, and it rises every year. In Mutual of Omaha's level table, a 70-year-old man pays about 34% more per $1,000 than a 65-year-old.

Name a beneficiary you trust to pay the funeral home, or ask about assigning part of the benefit to the funeral home at the time of death. Our what it covers guide explains both options.

Pay by bank draft on a date that matches your Social Security deposit. Some carriers, including Transamerica, accept premiums from a Direct Express card.

Compare more than one carrier. Health questions, face limits and graded rules differ, so the same person can get a level plan from one company and only a graded plan from another.