There is no standard amount of final expense insurance. The right figure is the gap between what your family would have to pay and what you have already set aside. Here is how to find it.
Step 1: Estimate the funeral
The National Funeral Directors Association reported a national median of $8,300 for a funeral with viewing and burial in 2023, and $6,280 for a funeral with viewing and cremation (NFDA statistics). Those medians leave out the cemetery plot, a marker or monument, flowers and an obituary.
Your own number could be well above or below that. A direct cremation with a simple memorial costs far less than a traditional service with burial. Ask local funeral homes for prices for the kind of service you want.
Step 2: Add the cemetery, if there is one
A plot, opening and closing the grave, a vault or liner if the cemetery requires one, and a marker are all priced separately. Ask the cemetery directly.
Step 3: Add the bills you would leave
- Medical bills not covered by insurance
- Credit card balances and personal loans
- The last months of rent or mortgage, utilities and other household bills
- Travel costs for family members
- Legal fees for settling your affairs
Step 4: Subtract what is already in place
- Savings you have set aside for this purpose
- Existing life insurance, including small employer or union policies
- A pre-need plan that is already paid for
- Benefits your family can claim, such as the $255 Social Security lump-sum payment or veterans burial benefits, if eligible
An example
| Item | Amount |
|---|---|
| Funeral service with burial (local quote) | $8,500 |
| Cemetery plot and marker | $3,000 |
| Medical bills and a credit card | $2,500 |
| Total costs | $14,000 |
| Savings set aside | – $4,000 |
| Gap to insure | $10,000 |
These numbers are made up to show the method. Use your own quotes.
Balance the amount against the premium
A policy only helps if it is still in force when it is needed. Choose an amount with a premium you can comfortably pay for life. If the ideal amount costs too much, a smaller policy still takes a real share of the burden off your family.
To see what different amounts would cost at your age, request a free quote.
This article is general information, not legal, tax or financial advice. Policy features, eligibility and prices depend on the insurance carrier, your state and your personal details.
