In 2014, the National Funeral Directors Association calculated the national median cost of a funeral to be $7,181 — or $8,508 with the inclusion of a vault (usually required by a cemetery). But most people are not prepared for these kinds of expenses.

Also known as burial insurance or end-of-life insurance, a Final Expense Plan is an insurance policy that helps cover medical bills and funeral expenses facing a family after a loved one’s death. There are three main types of Final Expense policies:

• A single-pay funeral trust plan = For people who choose to put a lump sum into their plan.
• A simplified-issue level and graded plan = For people who want to pay over time. (This is the most popular type of policy.)
• A guaranteed issue plan = For people whose health issues disqualify them for coverage with a simplified issue plan; this type of policy has a much lower coverage cap.

These options cost less than traditional insurance, and can be an affordable option for people on a fixed budget — such as seniors who want to plan for their end-of-life expenses.

Most importantly, a Final Expense plan enables a client’s loved ones to handle funeral costs, medical bills, and any other financial obligations during a highly emotional time.