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Pre-need is usually sold to more wealthy families and final expense is sold to lower income families.
Pre-need is a price guaranteed contract with a funeral home. They select the funeral and either single pay the amount or pay it monthly over 3, 5 or 10-years. It's funded with an increasing benefit, limited pay whole-life policy. More and more states are requiring that you have a funeral directors license to sell it. Many still don't though. It has very limited underwriting for immediate benefit and is completely guaranteed issue for graded benefit.
Final expense is sold most often as a lifepay whole-life with a level death benefit. FE has a much lower monthly payment because the premiums are usually payable for life and the death benefit never increases.
Both products have their place and are good in certain situations.
