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What is Final Expenses Insurance?

Written by Shelter Bay

What is Final Expenses Insurance?

What is Final Expenses Insurance?Final expense insurance is a lump sum insurance benefit to help fund the final expenses of a funeral, legacy gifting and settliing the estate of a deceased person.

The insurance industry has changed dramatically over the years and consumers can now use the services of a professional broker to buy small policies online and over the phone.

In some cases, coverage is available without a medical exam for critical illnesses (cancer, stroke, heart attack, etc.), long and short term disability and travel, in addition to life.

What are Final Expenses?

Final expenses, bluntly put, is what it costs to bury or cremate you. We know, this isn’t the most pleasant of topics. Death is not something people like to think about, but when you plan for the expense of death ahead of time, it is much easier for your family to carry out your final wishes and go through the grieving process.

The last thing you want is to have your family feel guilty because they cannot afford the style of funeral they want to give you–or worse, go into debt because they said their final goodbyes in a very grand (read: very expensive) style.

Final expenses insurance takes the stress out of budgeting for the funeral so everyone can move on to the very important healing process of celebrating your life’s journey and saying goodbye.

The reason final expenses are such a big deal is because even a basic funeral is costly. According to, a decently sized funeral starts around $5,000, but it is not unheard of for funerals to cost $15,000 or more.

There is a cost associated with each item, such as the casket, the flowers, the type of service, the casket liner, the vault, the grave plot, the marker, transportation to and from the cemetery, music, viewings…there are many of different ways to do a funeral, and that means costs vary widely.

Cremations are not quite as costly, but again, it is completely dependent on the type of cremation you wish to have (or your family wishes to have for you). A direct cremation is around $600, but that does not include any type of service, notices, flowers, etc.

Can I Fund my Funeral with Cash?

Yes, you can place the cash in a savings account.  That will save you additional life insurance premiums, but this planning has a big drawback.

If you owe money for taxes or to creditors, the cash you’ve set aside in your accounts are not secure as they become part of your overall estate.

A life insurance benefit is protected from creditors and CRA so you can be sure your beneficiaries will get a the money they need.

Funding a Funeral with Final Expenses Insurance

The best way to have funds available for your funeral is to take out a small life insurance policy.  A 10K – 25K whole life policy is very inexpensive and simple to put in force.

Use the our quote tool fof instant pricing.

That Will is Still Important!

It is still vitally important to have a will in place, whether you are funding your final expenses with cash or with a benefit from a life insurance policy.

While most life insurance benefits pass to the beneficiary tax free and are protected, having a will protects your final wishes. You may not want to be cremated, or you may not want to have certain assets outside of the insurance benefit pass to certain family members.

While life insurance eases the financial pain at your passing, a will eases the emotional turmoil of trying to “guess” what your last wishes would be and the legal requirements related to making that happen.

A will, life insurance and money for final expenses protects your loved ones emotionally and financially, and gives you peace of mind that things will be okay for them once you pass on.

Let us Help

Don’t put off arranging your final expenses. Have a compassionate discussion with us. We’ll assess your wishes and take a look at the insurance and assets you have in place before we make any recommendations.

At Shelter Bay, your final expense insurance is just a quick call away.

Shelter Bay Financial Corp
Shelter Bay Financial Corp

Life & Health Insurance brokers working for Canadians

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