What is final arrangement life Insurance coverage? It's a type of permanent life insurance that provides funds to pay for your final expenses which may include the cost of your funeral, burial, plot, headstone, and related expenses. In addition, your beneficiary may use the funds from the life insurance policy to cover your medical bills and unpaid debts. By purchasing final arrangements life insurance you make sure your loved ones will not experience any financial distress due to your death, by providing the funds to cover the cost of your final expenses.