By OLPolicy | Licensed Insurance Specialists | (866) 757-5350
When every dollar has a job, adding a new monthly expense feels impossible. Social Security comes in. The bills go out. And somewhere in the back of your mind is a worry you never quite say out loud: What happens to my family when I’m gone? Who pays for the funeral? Will they have to pass a hat around?
That worry is real and it’s shared by millions of seniors living on fixed incomes across the country. You’re not alone in it.
Here’s what most people in your situation don’t know: final expense insurance was built with you in mind. Not for wealthy retirees with large savings. Not for families who can write a check for $10,000 without flinching. It was specifically designed for seniors on Social Security, pension income, or disability benefits who need real protection at a price that won’t squeeze everything else out of their budget.
This guide shows you exactly how to get Final Expense Insurance for People on Fixed Income: that coverage -what it costs, how to keep it affordable and how to make sure your family never gets left holding a bill they can’t afford.
| 💡 Quick Answer
Final expense insurance for seniors on fixed income typically costs between $20 and $100 per month -and that range can get your family anywhere from $5,000 to $25,000 in coverage. Premiums are fixed for life, so your payment never increases. And because no medical exam is required, the application process is simple, fast and completed entirely by phone or online. |
Let’s start with an uncomfortable truth that most families only discover after it’s too late.
The average funeral in the United States today costs between $8,000 and $12,000 for a traditional burial. Even a simple cremation runs $2,000 to $5,000 once you add in urns, death certificates, obituary notices and a small gathering for family.
The Social Security Administration provides a one-time death benefit of $255 to eligible survivors. Two hundred and fifty-five dollars.
That gap -between what Social Security provides and what a funeral actually costs -falls entirely on your family. And for families who are also living on fixed incomes, coming up with $8,000 or $10,000 with no warning is devastating. It means emergency loans. Credit card debt. GoFundMe pages. Arguments between siblings about who pays what.
Final expense insurance closes that gap. Completely. And it does it for a monthly premium that most seniors can fit into their budget -often for less than what they spend on cable TV.
| ⚠️ The $255 Social Security Death Benefit Is Not Enough
The Social Security lump-sum death benefit ($255) is only available to a qualifying spouse or minor child -not all family members. And even when it is available, it covers less than 3% of the average funeral cost. Do not count on it to protect your family. |
Before we talk about coverage, it helps to know exactly what you’re preparing for. Here’s a complete breakdown of funeral and end-of-life costs -so you can choose a coverage amount that actually makes sense for your situation.
| Expense | Low End | High End |
| Basic cremation service | $700 | $2,500 |
| Burial service (no frills) | $3,000 | $5,000 |
| Full funeral with burial | $7,000 | $12,000 |
| Casket | $1,000 | $5,000 |
| Cemetery plot | $1,000 | $4,000 |
| Headstone or grave marker | $800 | $3,000 |
| Death certificates (multiple) | $100 | $300 |
| Obituary notice | $100 | $500 |
| Reception / gathering | $500 | $3,000 |
| Outstanding medical bills (avg) | $1,500 | $8,000+ |
| Total (cremation scenario) | ~$2,000 | ~$5,000 |
| Total (burial scenario) | ~$8,000 | ~$15,000+ |
The takeaway: if you’re planning for cremation, $5,000 to $10,000 in coverage is typically sufficient. If you want a traditional burial service, $10,000 to $15,000 is a more realistic target. Having even a modest final expense policy in place means your family handles these costs from a position of calm -not crisis.
This is the number that matters most. Here’s the honest answer: for most seniors on fixed incomes, meaningful final expense coverage is genuinely affordable -often starting at less than $1 per day.
Your monthly premium depends on four things: your age, your gender, the coverage amount you choose and your health. Here’s a realistic budget planner that shows what different monthly budgets can buy:
| Monthly Budget | Age 60 (F) | Age 65 (M) | Age 70 (F) | What That Covers |
| $20 – $30/mo | $5,000 coverage | $5,000 coverage | $5,000 coverage | Basic cremation + death cert fees |
| $30 – $50/mo | $10,000 coverage | $7,500 coverage | $7,500 coverage | Cremation or modest burial service |
| $50 – $75/mo | $15,000 coverage | $12,000 coverage | $10,000 coverage | Full burial + headstone + reception |
| $75 – $100/mo | $20,000 coverage | $15,000 coverage | $13,000 coverage | Full service + leftover for family |
| $100+/mo | $25,000+ coverage | $20,000+ coverage | $18,000+ coverage | Full funeral + debt payoff cushion |
| 💰 The Most Important Thing About Final Expense Premiums
Your premium is fixed for life. The $42/month you pay today is the same $42/month you’ll pay in 10 years. No increases. No surprises. No rate hikes when you turn 75 or 80. This predictability is exactly what makes final expense insurance right for people on fixed incomes -you can budget for it permanently. |
A final expense policy is already designed to be affordable. But there are specific strategies that can help you find the lowest possible rate for the coverage you need. Here’s what actually works:
| Strategy | How It Saves You Money | How Much You Can Save |
| Apply sooner rather than later | Premiums are locked in at your current age -every year you wait costs more | Up to $15–$30/mo by applying at 65 vs. 70 |
| Choose the right coverage amount | Don’t over-insure -$10,000 covers most funerals; bigger isn’t always better | Save $20–$40/mo vs. an unnecessary $25K policy |
| Pay annually instead of monthly | Many carriers discount 3–5% for annual payment | $15–$30/year back in your pocket |
| Use an independent agent | Compares rates across 10–20 carriers instantly -finds the lowest for your age | Typically saves $10–$30/mo vs. going direct |
| Non-smoker status | Non-tobacco rates are significantly lower -quitting for 12+ months often qualifies you | $10–$25/mo lower than tobacco rates |
| Choose direct bank draft payment | Many carriers offer slightly lower rates for automated bank draft vs. paper check | $3–$8/mo savings at some carriers |
| Avoid return of premium rider | This add-on inflates premiums with little real value for most seniors | Save $10–$25/mo by skipping it |
| 💡 The Single Biggest Money-Saving Move
Apply now -not next year. Final expense premiums are calculated based on your age at the time you apply. Waiting 12 months typically means paying 8–12% more for the same coverage for the rest of your life. If you’re thinking about it, this week is always better than next month. |
One of the most common mistakes seniors on fixed incomes make is buying more coverage than they need -paying for a $25,000 policy when a $10,000 policy would fully cover their family’s needs and cost $30 less per month.
On the other hand, buying too little coverage defeats the purpose entirely. Here’s how to think about it:
Do you want a traditional burial with a funeral service, or would cremation be acceptable? If cremation is fine, $5,000 to $10,000 is usually enough. If you want a traditional burial, budget for $10,000 to $15,000 minimum.
If you have credit card balances, medical bills, or other small debts you’d like covered, add those to your estimate. Many seniors find that $15,000 covers the funeral and clears smaller debts with a little left over for their family.
Some seniors want to leave a small amount for a grandchild’s education, a gift to their church, or simply something meaningful for a loved one. If that matters to you, factor it in -even $2,000 to $5,000 on top of funeral costs can mean a great deal.
A $25,000 policy isn’t more responsible than a $10,000 policy if the $15,000 difference in coverage puts real strain on your monthly budget. Choose the amount that genuinely fits -your family will appreciate the planning regardless of the size.
| 🛡️ A Simple Formula for Fixed-Income Seniors
Funeral preference ($5K cremation or $10K–$12K burial) + small debts you’d like cleared + any small gift you want to leave = your ideal coverage amount. Most fixed-income seniors land between $10,000 and $20,000. Start there. |
This is one of the most important questions seniors on fixed incomes ask -and one that doesn’t get answered clearly enough. Let’s go through each benefit:
Owning a final expense life insurance policy does not affect your Social Security retirement benefits in any way. Social Security retirement income is based on your work history and is not means-tested -meaning your assets and insurance policies are completely irrelevant to what you receive.
If you receive Supplemental Security Income (SSI) -which is the needs-based program -there is technically an asset limit. However, life insurance with a face value of $1,500 or less is typically exempt. Final expense policies above $1,500 in face value could count toward the SSI asset limit depending on cash value accumulation, so it is worth checking with a benefits advisor if SSI is your primary income source.
Medicaid eligibility is asset-based, but life insurance is treated carefully under most state Medicaid rules. In most states, a life insurance policy with a face value below $1,500 is fully exempt. Policies above this threshold may have the cash value counted as an asset -but this typically only becomes relevant if the cash value grows significantly over many years.
Importantly: the death benefit paid to your beneficiary after you pass does not affect your Medicaid eligibility while you’re alive. And if your final expense policy is owned by someone other than you -say, your adult child -it typically doesn’t affect your Medicaid at all.
Medicare is not affected by life insurance in any way. Medicare eligibility is based on age and work history -not assets or income. Owning a final expense policy has zero impact on your Medicare coverage.
Veterans receiving VA benefits can own final expense insurance without any impact on their VA healthcare or pension benefits. In fact, many veterans choose to supplement their VA benefits with a final expense policy to cover costs VA benefits don’t address.
| ⚠️ SSI Asset Limits -Worth a Quick Check
If Supplemental Security Income (SSI) is your primary income, ask an OLPolicy specialist or a benefits counselor before applying. We can structure your policy in a way that avoids impacting your SSI -for example, by keeping the face value at a level exempt from asset calculations, or by having a family member own the policy. |
| Ready to Find Coverage That Fits Your Budget?
Our specialists work with seniors on Social Security every day. We know which carriers offer the lowest rates -and we’ll find coverage that protects your family without disrupting your budget. 📞 Call OLPolicy: (866) 757-5350 |
We hear it regularly: “I just don’t have extra money.” We understand -and we want to be honest with you rather than push you toward something that doesn’t work for your situation.
Here’s what’s available if your budget is genuinely tight:
For many seniors over 65, a $5,000 guaranteed issue policy -which requires no health questions -can be obtained for around $30 to $50 per month. It won’t cover a full traditional burial, but it covers cremation and basic end-of-life costs entirely. That’s a real, meaningful thing to leave your family.
If you’re in reasonable health, a level benefit policy for $5,000 or $7,500 can start as low as $20 to $30 per month for female applicants in their early 60s. This is an extremely affordable entry point -and the full benefit is active from day one.
If you already have a small whole life policy -even one you bought decades ago -it may be reassignable to a funeral home or used as the basis for a final expense plan. Ask OLPolicy to help you review existing policies before purchasing new coverage.
Some funeral homes offer installment-based pre-need plans where you pay for your funeral directly over time. These are not life insurance policies and the money goes to the funeral home -but they can serve as an alternative for people who truly cannot qualify for or afford an insurance policy.
| 📋 Honest Advice for Very Tight Budgets
Even $5,000 in coverage is infinitely better than nothing. A $5,000 policy at $30/month costs $360/year. Over 10 years, you pay $3,600 in premiums and your family receives $5,000 -more than you paid in. And if something happens in year one, they receive the full $5,000 for just one month of premiums. The math of final expense insurance always favors the policyholder over time. |
Ruth lives on $1,180/month in Social Security. After rent, utilities, groceries and her blood pressure medication, she has about $150 left each month. She’d been putting off life insurance for years because she assumed she couldn’t afford it.
When she called OLPolicy, we found her a level benefit policy for $10,000 at $38/month. She told us: “Thirty-eight dollars. I spend more than that every month eating out. I just didn’t realize it was actually possible.” Her two daughters are named as co-beneficiaries. Ruth says the peace of mind is worth every cent.
Calvin receives a small pension and Social Security, totaling about $1,450/month. He was worried about his Type 2 diabetes making insurance too expensive. He had also been denied once before by a company he’d seen advertised on TV.
OLPolicy found Calvin a $15,000 level benefit policy at $74/month -despite his diabetes, which was well-controlled with oral medication. His wife Gloria is the beneficiary. Calvin said the biggest surprise was that his diabetes didn’t price him out. “I thought that door was closed. Turns out it wasn’t even locked.”
Loretta is 81, has COPD and lives entirely on Social Security. She had tried to get coverage twice before but found the premiums too high. She almost gave up.
We found Loretta a guaranteed issue policy for $8,000 at $67/month -no health questions, approved same day. Yes, there’s a two-year graded period. But her son told us: “My mother has wanted to handle this for fifteen years. The fact that she finally has something in place -that she did this for us -means everything.”
| ❌ MYTH: Life insurance is only for people with money to spare.
✅ TRUTH: Final expense insurance was designed specifically for seniors on limited incomes. The low benefit amounts and simple structure keep premiums affordable -often under $50/month for meaningful coverage. It is a product built for your situation. |
| ❌ MYTH: If I miss one payment, I lose everything I’ve paid in.
✅ TRUTH: Most final expense policies have a grace period of 30 to 31 days after a missed payment. If you’re going through a tight month, contact your insurer -they would rather work with you than cancel the policy. Many policies also accumulate enough cash value over time to cover a missed premium. |
| ❌ MYTH: A small policy isn’t worth the monthly cost.
✅ TRUTH: A $10,000 policy paid for one year ($480 in premiums) leaves your family $9,520 ahead if something happens. Even after 10 years, you’ve paid $4,800 in premiums and your family receives $10,000 -a net gain. The protection starts from the first premium payment. |
| ❌ MYTH: My family will figure out the funeral costs when the time comes.
✅ TRUTH: Funerals require cash -often within 24 to 72 hours of death. Banks freeze accounts during estate settlement. Credit cards may not have room. Crowdfunding takes time. Having a policy in place means your family has a check in hand within 14 to 30 days of filing -not scrambling for money during grief. |
| ❌ MYTH: I should save the money myself instead of paying premiums.
✅ TRUTH: To save $10,000 at $42/month requires nearly 20 years -and the savings don’t protect your family if something happens before you reach that goal. A final expense policy protects your family from day one while your savings are still building. |
Before you call OLPolicy, use this checklist to walk in prepared:
| 📋 What to Know Before You Call (866) 757-5350
Your monthly income range (just approximate) | Any current health conditions and medications | Whether you receive Social Security, SSI, Medicaid, or VA benefits | Your ideal coverage amount -or at least the funeral type you’re planning for (cremation vs. burial) | Your monthly budget for a premium -even a rough number helps | The name of your intended beneficiary | Whether any family member has offered to help pay the premium (a joint family approach can stretch a tight budget) |
Yes -policies start as low as $20–$30/month for smaller coverage amounts. Most seniors on Social Security can find meaningful coverage for $35–$75/month without disrupting their essential expenses.
Social Security retirement benefits are not affected by owning life insurance. SSI recipients should check asset limits, but most standard final expense policies can be structured to avoid impacting SSI eligibility.
Yes -Medicaid eligibility is based on income and assets, but life insurance policies below certain face value thresholds are typically exempt. Ask an OLPolicy specialist to help you structure coverage that doesn’t affect your Medicaid.
Thirty dollars a month can buy a real final expense policy -typically $5,000 to $7,500 in coverage depending on your age. That covers cremation costs entirely and gives your family a financial foundation for end-of-life expenses.
No -final expense premiums are locked in for life at the rate you start with. Your payment never increases, regardless of your age or any changes to your health after the policy is issued.
Absolutely. Many families split or cover the premium for an elderly parent. The policyowner can be a family member and the insured is the senior. This is a common and completely legitimate arrangement.
Most policies include a 30-day grace period -you’re still covered during that window. If you’re struggling, contact your insurer immediately to discuss options before the policy lapses.
Yes -carriers accept applicants up to age 80 or 85 for most policy types. Even at 82, a $5,000 guaranteed issue policy at $65/month gives your family something meaningful to work with rather than nothing at all.
Living on a fixed income doesn’t mean settling for less protection. It means being smart about where every dollar goes. And a final expense policy that permanently locks in your coverage, keeps your premium stable for life and guarantees your family isn’t left scrambling -that dollar is working very, very hard for you.
The hardest part isn’t affording it. The hardest part is making the call. Once you do, our specialists at OLPolicy will do the work -comparing carriers, explaining your options honestly and finding coverage that fits the life you’re actually living.
You took care of everyone else your whole life. Let this be the last thing you do for them.
| One Call. Real Coverage. A Budget That Still Works.
OLPolicy specializes in finding affordable final expense coverage for seniors on Social Security and fixed incomes. We compare top-rated carriers and find your best rate -fast. 📞 Call OLPolicy: (866) 757-5350 |
OLPolicy | Licensed Insurance Agency | (866) 757-5350 | www.olpolicy.com
This article is for educational purposes only. Benefits eligibility, Medicaid rules and SSI asset limits vary by state and individual circumstance. Consult a licensed agent or benefits counselor for advice specific to your situation.
