Understanding the Gap

A $9.95/month policy gets you $5,000-$10,000 in permanent whole life coverage. That’s legitimately achievable. But what does $5K-$10K actually cover? And more importantly, what does it leave unprotected?

“$9.95 a month buys something. It’s just a question of whether ‘something’ is enough. For a retiree with no dependents, maybe. For a working parent with kids and a mortgage? Absolutely not.”

– InsuranceBrokers USA – Management Team

Bottom Line

The $9.95 policy is a final expense policy. It covers funerals. It doesn’t cover what happens to your family after the funeral is paid for. That’s the critical distinction.

The Real-World Math

Consider these actual families. In each scenario, a $10,000 policy helps—but leaves a massive gap. The question isn’t “can you get $9.95?” It’s “Is $10K enough to protect what matters?”

Sarah, age 38, two kids, $250K mortgage

• Monthly expenses after her death: $4,500 (mortgage, kids’ school, food, utilities)
• What $10K covers: ~2 months of expenses
• What’s needed: $500K to $750K (5-7 years of family income replacement)
• Actual cost for $500K term: $40-50/month

The Gap: $10K handles the funeral. The other $490K of need? Unprotected. For an extra $35-40/month, Sarah could actually protect her family.

Michael, age 45, business owner, $150K in business/personal debt

• Outstanding debts: $50K business line, $40K car, $60K home equity
• What $10K covers: ~7% of his debt
• What creditors would claim: Business, car, home
• Actual need: $250K-$350K to protect assets
• Cost for $300K term: $45-60/month

The Gap: $10K doesn’t touch his real obligations. Without proper coverage, his family loses the business and assets. For $50/month extra, he could protect everything.

James, age 68, married, limited income, $50K savings

• Spouse’s age: 66, likely to live 20+ more years
• Wife’s expenses: $2,500/month without James’s income
• What $10K covers: 4 months of expenses
• Long-term need: Income bridge for spouse
• Cost for $25K final expense + income: $30-45/month

The Gap: Even in retirement, $10K leaves spouse vulnerable. A $25K policy addressing both funeral costs AND providing some income bridge costs only $10-15 more per month.

Bottom Line

In nearly every real family scenario, $10,000 is a nice cushion for funeral costs but leaves massive protection gaps. The question isn’t whether $10K is better than nothing—it is. The question is whether it’s enough. For most families, it’s not. And affordable, adequate coverage is more achievable than you think.

How Much Is Actually Enough?

Industry guidance suggests life insurance coverage should be 5-10 times your annual income, plus debt payoff, plus some cushion. $10,000 falls short of that for nearly everyone. But here’s the good news: adequate coverage isn’t as expensive as you think.

“The jump from $9.95/month to real adequate coverage is smaller than most people think. Instead of a $9.95 policy you’ll outgrow or regret, invest $30-50/month into coverage that actually protects your family.”

– InsuranceBrokers USA – Management Team

Bottom Line

Don’t settle for $10,000 just because it’s cheap. For an extra $25-50/month, you can get 3-50x more coverage. The real question isn’t “can I afford $9.95?” but “can I afford NOT to get enough coverage?”

How Much More for Enough Coverage?

The jump from $9.95 to real adequate coverage isn’t as big as you’d think. Here’s what actual protection costs across different situations—and how little extra you’re really paying for 5-50x more coverage.

Bottom Line

Going from $9.95 to actual adequate coverage typically costs $30-50 more per month. That’s $360-600 per year for 2-50x more protection. The question isn’t whether you can afford it—it’s whether you can afford NOT to get it.

Before You Settle for $9.95/Month, Ask Yourself:

• Does my family’s main financial need get covered? (Usually not—funeral is covered, but lost income isn’t)
• What happens to my mortgage/rent after the funeral?
• Can my family afford college for my kids with just $10K?
• Is my spouse protected if I’m the main earner?
• What debts would my family inherit?
• Is $10K still enough in 10 years when inflation rises?

Bottom Line

A $9.95/month policy is real. It helps. But it solves one problem (funeral costs) and ignores the bigger financial risks your family faces. Don’t choose $9.95 because of price—choose adequate coverage because it actually protects your family.