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 still 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
- Free burial in a national cemetery, including the gravesite, opening and closing of the grave, liner, and a government headstone or marker
- Presidential Memorial Certificate as an honorable tribute
The burial allowance for a non-service-connected death is currently around $300 for hospitalized veterans and $796 for other eligible veterans — though these amounts can change. For a service-connected death, the allowance may be higher.
A free national cemetery burial is a meaningful benefit, but it does not cover the funeral home, transportation, embalming, viewing, or family reception costs. Those expenses can easily run $8,000 to $15,000 or more.
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, 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 fixed and may not keep pace with costs. Funeral costs have risen steadily over time. A burial allowance of a few hundred dollars covers very little of a modern funeral.
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, typically ages 50 to 85, who want a straightforward policy with a modest death benefit. 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 (immediate coverage): This is the most affordable option for veterans in reasonable health. Coverage begins on day one. 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 during that period, your beneficiary receives a portion of the benefit — often the premiums paid plus interest. After the graded period ends, the full benefit applies.
Guaranteed issue: This type requires no health questions at all. Anyone in the eligible age range can qualify. The trade-off is higher premiums and a graded benefit period. This is typically the right choice only 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.
Common conditions among veterans — such as heart disease, high blood pressure, COPD, diabetes, and anxiety disorders — do not automatically disqualify you from coverage. Many final expense insurers are designed specifically to work with applicants who have these conditions.
Agent Orange exposure, Gulf War illness, and other service-related health issues may have led to chronic conditions over time. Even so, most veterans can find some level of final expense coverage. The key is working 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 primarily on your age at the time of application and your health status. Rates are locked in when you buy the policy — they will not increase as you get older or if your health changes.
Here are rough monthly premium ranges to give you a general idea:
- Age 60, $10,000 benefit, good health: approximately $30 to $50 per month
- Age 70, $10,000 benefit, good health: approximately $55 to $80 per month
- Age 75, $10,000 benefit, some health issues: approximately $80 to $130 per month
These figures vary by insurer, your specific health answers, and whether you smoke. A tobacco user typically pays 25 to 40 percent more than a non-smoker for the same coverage.
The best way to find an accurate rate is to speak with a licensed agent who can compare options from multiple insurers. Getting a free quote from a licensed final expense agent costs nothing and gives you real numbers based on your situation.
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 term life coverage up to $400,000 and does not require a medical exam if you apply within 240 days of leaving service.
However, VGLI premiums increase significantly as you age. By the time many veterans are in their 60s and 70s, the cost of VGLI may exceed what a final expense whole life policy would charge for a smaller benefit. Because VGLI is term coverage, it also does not build cash value and has no guaranteed premium.
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 have and the lower your premiums will be.
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. A $10,000 to $15,000 policy is often sufficient when combined with VA burial benefits.
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 reliable, tax-free lump sum when they need it most. 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.