Final expense coverage can be a good buy...  It's generally a whole life policy that covers burial expenses.  The plans are usually purchased in amounts ranging from $1,000 to $50,000.  And usually-- but not always-- these plans are simplified issue.  This means that an exam is not usually required.  The insurance company will look you over a little bit though...  A Medical Information Bureau (MIB) report is run and there's a fair number of questions to ask on the application in regard to your health.  Best to answer these questions honestly since not telling the truth could mean the insurance company will not pay your loved ones.

I actually have a recent example of just how the insurance company will begin their line of questioning when faced with a plan that hasn't been inforce very long...  In March, a customer bought a $5,000 final expense/whole life insurance policy.  He claimed good health at the time and nothing negative at all to report... except he smoked.  He was approved within a week of applying for the plan and decided to pay annually... $240 per year.  In July he called his agent to confirm coverage.  "Just wanted to make sure I'm all paid up and my policy is inforce", he said.  "I just found out I have lung cancer and I ain't doing too good.  I didn't lie or nothin'.  I really didn't know I was sick."

He died in September and his primary beneficiary received a letter to inform her of an investigation that is underway.  This happens whenever an insured dies within 2 years of the inforce date-- the "contestability period".  It's within this period that an insurance company possesses the power to deny a claim for failing to disclose the truth on an application for life insurance.

As it happens... the customer was telling the truth and the beneficiaries were paid on the claim... but the story illustrates the importance of telling the truth when you apply.

Final expense coverage is usually very affordable in lower face amounts... and very expensive when you start to exceed $25,000 in coverage or so.  If permanent coverage is what you seek and your health is good... then the best option is usually a Universal Life Insurance policy with a lifetime guarantee.  You'll need to take a medical exam (the insurance pays an examiner to come to your house and do this when it's convenient for you) and go through a traditional underwriting process with most companies... but you'll save a ton of money.