Alyssa Lane
Burial insurance, also known as funeral expense insurance, is a type of whole life insurance policy that can be used to cover burial and other funeral costs. It is a great option for seniors who want to ease the financial and planning burdens for their loved ones. The cost of burial insurance depends on factors such as age, gender, and the amount of coverage needed, with rates increasing as the insured gets older. Burial insurance is generally cheaper when purchased at a younger age, and most companies offer plans for individuals as young as 30 days old. Seniors over 75 may find it beneficial to shop around for the best rates, as prices can vary significantly between companies. Burial insurance policies typically have low coverage amounts, ranging from $5,000 to $25,000, and are usually purchased by individuals who cannot get approved for other types of coverage. It is important for seniors to research and compare different options to find the best match for their needs and budget.
| Characteristics | Values |
|---|---|
| Purpose | Burial insurance, also known as funeral expense insurance, final expense insurance, or funeral insurance, is a life insurance policy with low coverage amounts designed to cover final expenses. |
| Who is it for? | Burial insurance is generally purchased by people who want to cover final expenses and cannot get approved for other types of coverage. It is usually suited for people aged 50 to 85, although some companies offer plans for those as young as 30 days old. |
| Cost | The cost of burial insurance depends on factors such as age, gender, health, and the amount of coverage needed. It tends to be lower the younger you are when you purchase a policy. On average, women are cheaper to insure than men. |
| Coverage | Coverage amounts typically start at $2,000 and go up to $25,000, although some companies offer coverage up to $50,000. Most policies offer between $5,000 and $20,000 in benefits. |
| Best insurance companies | AARP, Mutual of Omaha, and State Farm are considered some of the best burial insurance companies based on coverage and cost. Transamerica is also mentioned for its flexible and convenient solutions, instant approvals, and electronic policy delivery. |
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What You'll Learn
Burial insurance costs
Burial insurance, also known as funeral or final expense insurance, is a great life insurance option for seniors. It helps pay for funeral-related costs and other end-of-life expenses to ease the financial and planning burden for loved ones.
The cost of burial insurance depends on factors like age, gender, health, and the amount of coverage needed. Burial insurance costs an average of $74 per month or $888 per year for a policy with $10,000 in coverage. However, the average cost can vary depending on the age group. For instance, the average cost of burial insurance for those over 60 and under 65 ranges from $18 to $88 per month. For those over 65 and under 70, the average cost ranges from $22 to $93 per month. The average cost of burial insurance for those over 70 and under 75 ranges from $28 to $116 per month. As the age increases, the cost of burial insurance also increases. For those over 80 and under 85, the average cost can range from $51 to $268 per month.
Some companies, like Mutual of Omaha, offer cost-effective burial insurance plans. Their Guaranteed Whole Life Insurance is available to individuals as young as 45 and up to 85, with a $10,000 policy for 60 and 70-year-olds costing $63 per month. AARP also offers a competitive policy at $63 per month for a $10,000 policy for individuals aged 60 to 70. State Farm's burial insurance policy costs $76 per month for a $10,000 policy for 60 to 70-year-olds.
It is important to note that burial insurance policies usually have low coverage amounts, so it is advisable to compare maximum coverage amounts among insurers if you want more comprehensive coverage. Additionally, burial insurance rates are locked in once the policy is obtained, so it may be beneficial to purchase the policy earlier to secure lower premiums.
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Pros and cons of burial insurance
Burial insurance is a type of life insurance policy with low coverage amounts designed to cover final expenses such as funeral costs, memorials, and other elements contributing to the funeral experience. It is generally purchased by people who want to cover these final expenses and cannot get approved for other types of coverage.
Pros
- Burial insurance can help alleviate the financial burden on families by covering funeral expenses and offering financial relief during a difficult time.
- It is a thoughtful way to help protect your family during a financially challenging period.
- It has a simple application process and is accessible to those with health issues as it does not require a medical exam.
- It has lower premiums than other life insurance types, making it accessible for older adults.
- It often pays out quickly, ensuring that funeral expenses can be covered without delays.
- Pre-need insurance can help people save money by allowing them to pay for services that may be cheaper today than in the future.
Cons
- Burial insurance can be expensive, and there may be better options available.
- It is not meant for people raising families who need more comprehensive life insurance to cover bigger obligations, such as a mortgage, tuition, and income replacement.
- Burial insurance for seniors is often marketed to people with tight budgets and poor health, and there may be more suitable alternatives.
- There is a maximum age limit for buying burial insurance, and it can get very expensive for older people.
- There is a cap on the coverage amount, which varies across providers.
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Burial insurance companies
Burial insurance, also known as funeral expense insurance, is a type of whole life insurance policy with low coverage amounts designed to cover funeral costs and other final expenses. It is generally purchased by people who want to cover these final expenses but cannot get approved for other types of coverage.
When shopping for burial insurance, it is important to consider the coverage limits, as these policies usually have low coverage amounts. If you want the most coverage, you should compare the maximum coverage amounts offered by different insurers. Additionally, it is recommended to shop based on price, but also to consider the insurance company's ratings, such as low customer complaints and a high AM Best rating, to ensure that your beneficiaries will receive the death benefit without any issues.
AARP/New York Life
AARP offers cost-competitive policies, with rates as low as $63 per month for a $10,000 policy for individuals aged 60 to 70. AARP also has the lowest level of complaints among its competitors, giving shoppers confidence in its final expense policy. However, to purchase this policy, you need to be an AARP member.
Mutual of Omaha
Mutual of Omaha offers guaranteed whole life insurance with one of the lowest costs among its competitors. For $63 per month, individuals aged 60 to 70 can obtain a $10,000 policy. Additionally, Mutual of Omaha offers a wide age range for its policies, with eligibility starting as young as 45 and going up to 85. The company provides various types of insurance, including term, whole, universal, and guaranteed issue whole life insurance.
State Farm
State Farm boasts an impressive A++ AM Best financial strength rating, indicating its ability to pay future approved claims. While its rates are slightly higher at $76 per month for a $10,000 policy for 60 to 70-year-olds, State Farm's policies may allow you to earn dividends, which can be paid in cash or used to pay premiums. Additionally, the cash value within the policy grows tax-deferred and can be borrowed against the death benefit if needed.
Transamerica
Transamerica offers a flexible and convenient solution for burial insurance with its Final Expense Express Solution. Policies are available without a medical exam, and coverage amounts range from $1,000 to $50,000. Their digital application process is designed for instant approvals and electronic policy delivery, making it an attractive option for those seeking a streamlined experience. Additionally, Transamerica provides helpful tools like the Concierge Planning Rider, which assists with funeral arrangements and legal documents at no extra cost.
American Family
American Family received fewer complaints relative to its size, making it a trustworthy choice. The company offers the DreamSecure Senior Whole Life Insurance policy with coverage amounts of $10,000 or $15,000 for individuals aged 50 to 80. Approval can be obtained within minutes of applying, and coverage starts as soon as the first payment is made.
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$8
How to get a burial insurance quote
Burial insurance, also known as funeral expense insurance, final expense insurance or funeral insurance, is a helpful tool for loved ones to cover the deceased's funeral, memorial service, headstone, urn, and other final expenses. It is a type of whole life insurance policy that can be used to cover burial and other funeral costs. Burial insurance is generally purchased by people who want to cover final expenses but cannot get approved for other types of coverage.
If you are considering purchasing burial insurance, you can get a quote by following these steps:
- Research insurance providers: Research different insurance providers and their plans. Understand the different types of burial insurance plans available, such as guaranteed issue life insurance plans, also known as guaranteed acceptance policies, which have no medical exams or health questions but come with higher premiums and limited coverage amounts. Compare the maximum coverage amounts offered by different insurers, as burial insurance policies usually have low coverage amounts.
- Contact insurance providers: Once you have identified a few potential insurance providers, contact them to discuss your options and request a quote. You can usually do this by phone or online. Provide them with your personal information, including your age, gender, health status, and the amount of coverage you require.
- Complete a health questionnaire: Some insurance providers may require you to complete a brief health questionnaire to assess your eligibility and determine your specific rates. Be prepared to answer questions about your medical history, including pre-existing conditions and smoking habits.
- Compare quotes: After receiving quotes from multiple insurance providers, compare the premiums, rates, coverage amounts, and other benefits offered. Consider the financial strength rating of the insurance provider, which can give you confidence that future approved claims will be paid when needed.
- Consider family members: If you, your partner, or other family members are all considering burial insurance, call several companies to explore family plan options. While family plans are not common due to the personalized nature of burial insurance policies, it is worth inquiring about potential solutions that can bundle individuals together.
- Review the waiting period: Keep in mind that many burial insurance policies have a waiting period of one to three years before full death benefits are paid out to beneficiaries. Understand the terms and conditions of the policy, including any exceptions or reimbursements during the waiting period.
By following these steps, you can obtain a burial insurance quote that suits your needs and provides peace of mind for you and your loved ones.
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Burial insurance for seniors over 80
Burial insurance, also known as funeral expense insurance, is a type of whole life insurance policy that can be used to cover burial and other funeral costs. It is designed to help ease the financial burden on loved ones, who may be left to pay for funeral arrangements, headstones, urns, and other final expenses.
Burial insurance is generally purchased by people who want to cover these final expenses but cannot get approved for other types of coverage. It is typically easier to qualify for than other life insurance policies as it usually does not require a medical exam. Instead, applicants need only fill out a short application with a few medical questions.
For seniors over 80, burial insurance can be a good option to ensure their funeral and end-of-life costs are covered. While the rates vary depending on age, gender, desired coverage amount, and health, there are companies that offer burial insurance to this age group. For example, Mutual of Omaha offers whole life insurance to people as young as 45 and up to 85. Transamerica also offers burial insurance to seniors over 75, with coverage amounts ranging from $1,000 to $25,000.
It is important to note that burial insurance policies usually have low coverage amounts, so it is recommended to compare maximum coverage amounts among insurers. Additionally, plans get more expensive the older you are, so it is advisable to look into getting a plan as early as possible. Seniors considering burial insurance should get a customized quote from multiple providers to find the best match for their needs and budget.
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Frequently asked questions
Burial insurance, also known as funeral or final expense insurance, is a type of whole life insurance policy that can be used to cover burial and funeral costs. It is essentially a life insurance policy, but with a much smaller benefit amount than traditional life insurance. Burial insurance policies usually have low coverage amounts, ranging from $2,000 to $25,000, with an average of $74 per month or $888 per year for a policy with $10,000 in coverage.
The cost of burial insurance for seniors varies depending on age, gender, health, and the amount of coverage desired. For example, a 75-year-old woman would pay about $88 per month for a final expense policy worth $10,000, while a 75-year-old man would pay about $113 per month for the same policy. The average cost of burial insurance for seniors over 80 and under 85 ranges from $51 to $268 per month, with women typically paying lower premiums than men.
Burial insurance can be a worthwhile investment for seniors, especially if they don't have another life insurance policy and are concerned about passing a medical exam. It is less expensive than traditional life insurance and often guarantees approval with no medical exam. Burial insurance can help ease the financial and planning burdens for loved ones, covering funeral costs, medical bills, legal costs, and outstanding debts. However, it is important to note that burial insurance rates increase with age, so it is advisable to purchase a policy earlier to lock in lower premiums.
