What's the difference between final expense insurance and term life insurance?

What it means

• The two products solve different problems. Term life is bought in face amounts of $250,000, $500,000, or more, for a fixed term of 10, 20, or 30 years, to protect a mortgage or replace a wage-earner's income if they die during the term. If the insured outlives the term, the policy simply ends with no payout.
• Final expense insurance is permanent — it is a whole-life policy that stays in force for the insured's lifetime as long as premiums are paid, in a face amount sized (typically $2,000–$40,000) to funeral and end-of-life costs. Because coverage is small and permanent, underwriting is simpler and older or higher-risk applicants who cannot qualify for term can still get final expense coverage.
• Practically: a healthy 40-year-old with a mortgage usually needs term life; a 70-year-old whose goal is to make sure a funeral does not fall on the family typically needs final expense. Some households carry both.