Final Expense Insurance for Veterans

If you served in the U.S. military, you may already have access to burial benefits through the Department of Veterans Affairs. But those benefits often do not cover everything. Many veterans also carry final expense insurance, or choose to add it, to fill in the gaps.

This article explains what VA burial benefits typically provide, where they fall short, and how a private final expense policy can work alongside them.

What the VA Offers for Burial Costs

The VA does provide some financial help with burial and funeral expenses for eligible veterans. The amount depends on factors like whether the death is service-connected and where the veteran is buried.

Here is a general overview of what may be available:

  • A burial allowance to help offset funeral and burial costs
  • Plot or interment allowance if buried in a private cemetery
  • Burial in a VA national cemetery at no cost to your family, including a gravesite where space is available, opening and closing of the grave, a burial liner, a government headstone or marker, and ongoing care of the gravesite (VA)
  • A burial flag, Presidential Memorial Certificate, and military funeral honors

For a non-service-connected death on or after October 1, 2025, the VA lists a $1,002 burial allowance and $1,002 for a plot. These amounts change every October 1. For a service-connected death, the VA pays up to $2,000 if the veteran died on or after September 11, 2001 (VA burial allowance). Eligibility rules apply, so check the VA page for your situation.

A national cemetery burial is a meaningful benefit, but the VA's list of what it includes does not cover funeral home services, a casket, embalming, a viewing, or a family reception. For context, the median cost of a funeral with a viewing and burial was $8,300 in 2023, before cemetery costs (NFDA, 2023).

Why Veterans Often Still Need Final Expense Insurance

Even with VA benefits, veterans and their families often face significant out-of-pocket costs. Here is why:

Funeral home services are not covered. The VA burial allowance helps with burial costs, but the funeral home charges, which include preparation of the body, the casket or cremation container, and services, are separate.

Distance to a national cemetery can be a burden. Not every family lives near an open national cemetery that accepts new burials. If your family cannot use the national cemetery, your family may pay for a private cemetery plot on top of everything else.

The allowances are limited. Even with the burial and plot allowances, a full funeral can cost more than the VA pays.

Surviving spouses and dependents may need financial breathing room. Even if burial costs are partially covered, a spouse left behind may need time to settle the estate, pay off debts, or simply cover everyday expenses during a difficult time.

A final expense policy, sometimes called burial insurance, can provide a lump-sum death benefit, typically $5,000 to $25,000, that your family can use for any purpose. It is not restricted to burial expenses.

How Final Expense Insurance Works for Veterans

Final expense insurance is a type of whole life insurance. It is designed for older adults who want a straightforward policy with a modest death benefit. Each company sets its own issue ages. There is no investment component and no expiration date. It stays in force as long as premiums are paid.

For veterans, the process of applying is the same as for any other applicant. Your military service does not disqualify you, but it also does not automatically get you a better rate. What matters to the insurer is your current age and health.

Types of Coverage Available

Level benefit: This is usually the lowest-cost option for veterans in reasonable health. The full death benefit is paid out regardless of when you pass away after the policy takes effect. To qualify, you typically answer a short health questionnaire.

Graded benefit: If you have serious health conditions, you may qualify for a graded benefit policy. In this case, the full death benefit does not pay out in the first two or three years. If you pass away from natural causes during that period, your beneficiary receives a reduced amount, such as the premiums paid plus some extra or a percentage of the benefit. The exact amounts are in the policy. After the graded period ends, the full benefit applies.

Guaranteed issue: This type asks no health questions, within the company's age limits. The trade-off is higher premiums and a limited benefit for the first two years. For example, AAA Life pays premiums plus 30% for a non-accidental death in that window (checked September 2026). It is mainly for veterans who cannot qualify for other options due to serious illness.

Health Conditions That Affect Approval

Veterans, particularly those who served in combat or were exposed to hazardous environments, may carry health conditions that affect their coverage options.

Conditions such as heart disease, high blood pressure, COPD, diabetes, and anxiety disorders do not automatically disqualify you from coverage. Some final expense companies are more flexible with these conditions than others.

Agent Orange exposure, Gulf War illness, and other service-related health issues may have led to chronic conditions over time. Even so, these conditions do not always rule out coverage. It helps to work with an agent who knows which insurers are more flexible with specific health histories.

Premiums: What Veterans Can Expect to Pay

Final expense premiums are based on your age at the time of application, sex, health answers, tobacco use, coverage amount, and policy type. On most final expense whole life policies, the premium stays level once you buy the policy. Confirm this in the policy.

Tobacco users usually pay more than non-smokers for the same coverage, and prices differ from company to company.

You can answer a few short questions to see your options, and a licensed agent can walk you through plans in your state based on your actual age and health.

Does the VA Offer Life Insurance for Veterans?

The VA does offer life insurance programs, including VGLI (Veterans' Group Life Insurance), which allows veterans to convert their SGLI coverage from active duty into a civilian policy. VGLI provides between $10,000 and $500,000 of term coverage, and if you sign up within 240 days of leaving the military, you won't need to prove you're in good health (VA).

However, VGLI premiums go up in five-year age brackets, so the cost rises as you get older. In your 60s and 70s, it may cost more than a final expense whole life policy with a smaller benefit. VGLI also does not build cash value.

If you only need $10,000 to $25,000 to cover final expenses, not a large income-replacement death benefit, a final expense whole life policy may be more affordable and more predictable than continuing VGLI into your later years.

Tips for Veterans Shopping for Final Expense Insurance

Start by understanding your VA benefits. Before you shop, know what burial benefits you are entitled to. This helps you identify how large a private policy you actually need.

Apply while your health is stable. The healthier you are when you apply, the more coverage options you are likely to have.

Avoid overpaying for more coverage than you need. Final expense insurance is meant to cover burial and related costs, not replace income or pay off a mortgage. Add up the funeral you want, subtract the VA benefits you expect, and size the policy to the gap.

Compare multiple insurers. Rates and underwriting rules vary widely. One insurer may decline you or charge very high rates for a health condition that another insurer handles routinely.

Read the policy carefully. Pay attention to whether the benefit is level or graded, and understand the exact terms of any waiting period.

Putting It Together

Veterans have more resources for end-of-life planning than most people realize. The VA offers meaningful burial benefits that can reduce what your family needs to pay out of pocket. But those benefits rarely cover the full cost of a funeral, and they do not provide flexibility for other final expenses.

A final expense insurance policy gives your family a lump sum that is generally not taxed as income. For many veterans, combining VA burial benefits with a modest private policy is the most complete approach to making sure the people they love are not left with financial burdens.

If you are a veteran weighing your options, the most useful next step is to review your VA eligibility and then compare final expense insurance rates based on your current age and health.