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In Canada, funeral costs can range from a modest $5,000 to over $15,000. One of the most important things to keep in mind is how your policy can be used to cover these costs.  Final expense insurance can also help with other expenses related to your death, such as probate fees or outstanding medical bills. Funeral costs can quickly add up, and if you don’t have a final expense policy in place, your family will be responsible for footing the bill.

What is final expense insurance and why do you need it?

Also known as funeral insurance, final expense insurance is a type of whole life insurance that covers the cost of your funeral and other end-of-life expenses. Final expense insurance policies offer a smaller death benefit than traditional life insurance and are generally easy to get approved regardless of your health condition and without a medical exam. It allows your loved ones to use the lump sum amount of death benefit for other expenses such as outstanding medical bills, debts, personal loans, or any taxes you may owe that they need to pay in your absence, as opposed to just covering funeral costs. Not only does it provide peace of mind for you and your loved ones, but it can also help ease the financial burden during difficult times.

How much does final expense insurance cost in Canada?

The average final expense premium costs between $30-$120 per month depending on your age, gender, health condition, coverage amount, and the insurance carrier you choose. If you have serious health problems or are above the age of 70, your premium will almost certainly be higher, costing between $80-$150 per month (though it may be less). Younger candidates in excellent health may be eligible for rates between $30 and $80. Keep in mind that a lower cost generally equals fewer features and benefits for surviving family members.

Age & Sex Coverage amount  Coverage amount  Coverage amount 
$10K  $25K  $50K 
60 years old  $22.08 $49.48 $93.86
60 years old  $25.48 $63.70 $122.56
65 years old  $28.61 $64.09 $123.09
65 years old  $34.91 $85.88 $160.60
70 years old  $39.25 $84.30 $163.51
70 years old  $48.10 $109.38 $211.54
75 years old  $54.47 $129.81 $254.52
75 years old  $66.89 $155.45 $305.79
80 years old 


$74.76 $186.91 $373.81
80 years old 


$88.28 $220.70 $441.40

Methodology: The chart above reflects average life insurance premiums for male and female non-smokers in a standard health classification, buying a Final expense policy. Prices in the table are determined by internal actuarial rate tables for Canada’s top life insurance carriers that offer policies through the WizLife marketplace. Last updated August 24th, 2022. 

Types of Final Expense insurance in Canada


Simplified Issue

A simplified issue is a type of insurance that doesn’t require a medical exam; instead, the applicants answer a health questionnaire as part of the approval process.


  • It is best suited for people who deal with minor health issues that may not qualify for traditional coverage.
  • Simplified life insurance offers a shorter waiting period.


  • The coverage amount is lower than what you can get with traditional term or permanent life insurance but higher than a guaranteed issue policy.


Guaranteed Issue

A guaranteed issue is a type of whole life insurance that doesn’t require a medical exam or health questions as part of the approval process. This type of insurance “guarantees” coverage regardless of your health condition.


  • With guaranteed issue life insurance, there’s no medical exam required or health questions asked – so it’s quick and easy to get covered.
  • It is best suited for people with serious health conditions who aren’t able to qualify for other types of insurance.
  • Some guaranteed issue policies come with a cash value component. This means that a portion of your premiums goes into a savings account that builds over time. You can access this cash value through a policy loan, which can be a helpful way to cover medical bills if you develop a critical illness or unexpected costs. It’s important to note that if you don’t pay back the loan before you pass away, your beneficiaries receive a smaller payout (coverage minus the outstanding amount).


  • The coverage amounts are generally lower. Only a few companies in Canada offer guaranteed issue policies with more than $25,000 in coverage.
  • Because the coverage amounts are lower, the premiums are generally lower than for other types of insurance. But the risk for insurance companies with this type of policy is higher, so the premiums are expensive for the amount of coverage you get. For example, a 70-year-old female would pay $103/month in premium for $20,000 in whole life insurance coverage. The same 70-year-old female would pay $153/month in premium for $20,000 in guaranteed issue life insurance coverage (1).

There are a few things to consider when shopping for funeral insurance. First, you’ll need to decide how much coverage you need. This will depend on the cost of your funeral and any other end-of-life expenses you want to be covered. Second, you’ll need to decide how you want the policy to pay out. You can choose to have the policy payout directly to your beneficiaries or to an executor who will then handle funeral arrangements. And finally, you’ll need to compare policies from different insurers to find the best coverage at the best price.

Advantages of final expense insurance

When it comes to final expense insurance, there are many benefits for senior citizens looking to pay for a funeral or related costs. In most cases, older adults can purchase a final expense plan without having to undergo a health exam. Plus, claims are typically paid out quickly, which means beneficiaries don’t have to worry about footing the bill themselves.

A final expense insurance payout can be used to cover funeral costs and other expenses. This type of policy is guaranteed to pay out, after any required waiting period, as long as you continue to pay the premiums.

Frequently Asked Questions


Is the final expense death benefit subject to tax?

The final expense payout is 100% tax-free. All causes of death are included (health or non- health-related in most cases), depending on the waiting period.

Do premiums increase with the age of the policy or as you get older?

In almost all cases, absolutely not. Your monthly price is fixed for the duration of the policy and cannot be changed by the insurance company.

Is there a medical exam to get approved?

No. Final expense insurance is designed differently than other life insurance policies. You only have to answer a few health questions that will skip the need for a medical exam or blood test.  And for guaranteed issues, you don’t even need to answer health questions.

Legal Disclaimer

  1. Prices are determined by internal actuarial rate tables for Canada’s top life insurance carriers that offer policies through the WizLife marketplace.