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Final expense life policies are so called because it is a policy is designed to cover the 'final expenditures' of the policy owner. Difficulty in choosing exactly how much a funeral will eventually cost frequently results in a final costs life policy owner taking out a policy which is large enough to cover all eventualities. The policies they sell are usually called pre-need life policies rather than final expense life insurance. The premium for final expense life policies can be paid for in full when a policy is taken out. If a policy owner of a final expense life policy has a serious medical condition a policy might specify a lower benefit will be paid during the very first few years of the policy.

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