Ultimate Guide To Burial And Funeral Insurance
Burial insurance is a small whole life policy designed to cover funeral and burial costs, with average monthly premiums of $30–$80, and is commonly chosen by seniors for peace of mind.
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Funerals can be costly, and no one wants loved ones burdened by expenses while grieving. Burial and funeral insurance offers comfort and financial assurance by helping to make sure final expenses are already paid for.
Key Takeaways
Burial insurance is a small whole life policy that covers end-of-life expenses.
Typical premiums range from $30 to $80 per month, depending on age and health.
Ideal for seniors without life insurance or substantial savings.
Coverage usually ranges from $5,000 to $25,000 and lasts for life.
Leading insurers include Mutual of Omaha, AARP, State Farm, Forresters, and Colonial Penn.
What Is Burial Insurance?
The idea behind burial insurance is simple: it’s about preparing financially for one of life’s most certain events. While no one likes to talk about death, funerals often cost thousands of dollars. Burial insurance offers an affordable way to make sure loved ones aren’t left scrambling to cover these costs.
Burial insurance, sometimes called final expense insurance, is a small whole life insurance policy that provides a tax-free death benefit for funeral and burial expenses. Policies are typically available to adults between 50 and 85, and coverage lasts for life. Premiums remain level, and policies build a small cash value over time.
For example, Mary, age 72, purchases a $10,000 policy for $48 per month. When she passes away, her daughter receives $10,000 to cover the funeral, cremation, and memorial service. Any leftover funds can help pay final bills or small debts.
Key Fact: According to the National Association of Insurance Commissioners (NAIC), most burial or final expense policies range from $2,000 to $25,000 in coverage, designed to ease the cost of funeral and cremation services.
Is Burial Insurance Worth It?
For many older adults on fixed incomes, burial insurance provides invaluable peace of mind. The tradeoff is between cost and convenience: paying a higher rate per dollar of coverage, but gaining simplicity and guaranteed acceptance. It’s ideal for people who want certainty that funds will be available immediately, without delays or medical exams.
However, those with significant savings or existing life insurance may not need it. If your family could easily cover final expenses, paying out-of-pocket might make more sense. Still, the emotional relief of having a dedicated policy often outweighs the small cost for many seniors.
Burial insurance may be worth it if:
- You don’t already have life insurance.
- You’re over 60 and want guaranteed acceptance.
- You have limited savings or assets.
- You want to relieve your family of financial stress.
- You prefer small, predictable monthly payments.
Key Fact: According to LIMRA, over 60% of Americans over age 65 own some form of life insurance specifically intended for end-of-life costs, reflecting how common it is to plan financially for funeral expenses.
Pros & Cons Of Burial Insurance
Burial insurance offers accessibility and peace of mind, but it isn’t for everyone.
| Pros | Cons |
| No medical exam required | Higher cost per $1,000 of coverage |
| Guaranteed acceptance options available | May have a two-year waiting period |
| Fixed premiums for life | Smaller payout compared to life insurance |
| Provides financial comfort for the family | Some policies include additional fees or riders |
Who Needs Burial Insurance?
Not everyone needs burial insurance, but for many, especially older adults, it can be a financial lifesaver. It’s designed for individuals who may not qualify for traditional life insurance or who don’t have savings set aside for funeral costs.
Burial insurance is most useful for seniors without savings or life insurance, people on fixed incomes who prefer small, steady premiums, those who want to protect their families from sudden expenses, and caregivers or adult children arranging end-of-life plans for parents. For many, it’s a final act of love that helps their family grieve without financial worry.
Types Of Funeral Insurance
Funeral insurance policies differ in how they’re structured and who they’re best for. The type you choose affects how much coverage you get, when benefits begin, and whether you’ll need to answer health questions.
Simplified issue whole life policies ask a few health questions, but no medical exam is required, and typically start coverage right away. Guaranteed issue whole life policies skip all health questions and guarantee approval, but include a waiting period (usually two years) before the full death benefit is paid out.
A third type, pre-need funeral insurance, is purchased through a funeral home and tied to specific services, with funds paid directly to the provider.
How Much Does Burial Insurance Cost?
Burial insurance is known for being affordable, but rates vary by age, health, gender, and company. Younger, healthier applicants pay less, while smokers and older individuals pay more. These are some sample rates:
| Age | Male | Female |
| 50 | $28–$40 | $24–$36 |
| 60 | $38–$52 | $32–$44 |
| 70 | $50–$70 | $42–$58 |
| 80 | $75–$110 | $60–$90 |
Key Fact: The Insurance Information Institute (III) notes that burial insurance premiums generally range between $30 and $80 per month, depending on age, health, and lifestyle factors. Non-smokers and women usually pay less because of lower average mortality rates.
Best Funeral Insurance Companies
The best insurers combine financial strength, affordable rates, and reliable customer service. These five companies are consistently recognized for stability and customer satisfaction.
| Company | Best For |
| Mutual of Omaha | Reliability and speed |
| AARP/New York Life | Members over 50 |
| State Farm | Local personalized service |
| Colonial Penn | Guaranteed acceptance |
| Foresters Financial | Added member benefits |
How To Choose The Best Funeral Insurance Plan
Selecting the right policy is about more than price. It’s about confidence: knowing your family will be taken care of when the time comes. When comparing burial insurance plans, get quotes from multiple providers through Insuranceopedia before deciding.
Choose coverage that matches your estimated funeral cost, which is typically between $8,000 and $12,000. Confirm that premiums are fixed for life, and avoid long waiting periods if you’re in good health. Review AM Best ratings and customer feedback to check reliability.
Quick Tip: Get at least three quotes before deciding—prices can vary by as much as 30% between insurers offering nearly identical coverage.
Burial Insurance Vs Life Insurance
While both provide financial protection, burial insurance focuses on smaller final expenses while life insurance covers larger needs such as income replacement or debt repayment.
Burial insurance policies typically range from $2,000 to $25,000 in coverage and require no medical exam, making them ideal for seniors. Traditional life insurance, on the other hand, offers higher coverage amounts, often $50,000 to over $1 million, but usually requires medical underwriting. Burial insurance premiums are lower in total but cost more per dollar of coverage.
Funeral Insurance Vs Prepaid Funeral Plans
Both funeral insurance and prepaid funeral plans help families prepare financially for end-of-life expenses, but they differ in flexibility and control.
Funeral insurance offers greater flexibility because your beneficiary decides how to use the money. Prepaid plans, while they lock in today’s prices, may limit choices and make transferring arrangements difficult.
| Feature | Funeral Insurance | Prepaid Funeral Plan |
| Payment Recipient | Beneficiary | Funeral home |
| Flexibility | Funds usable for any expense | Restricted to funeral provider |
| Refundability | Can cancel or cash out | Often non-refundable |
| Control | Family controls funds | Funeral home controls services |
Burial Insurance For Seniors
Burial insurance is especially valuable for seniors who may not qualify for traditional life insurance or who prefer smaller coverage amounts. It’s available to most people aged 50 to 85 and requires no medical exam.
Guaranteed issue policies are ideal for those with chronic conditions such as diabetes or heart disease, while simplified issue plans provide faster full coverage for healthy applicants. After a short waiting period, normally two years, the full death benefit applies. For retirees, these policies help ensure loved ones aren’t left in financial hardship.
Quick Tip: If you’re in good health, look for immediate coverage or simplified issue policies, which often skip the two-year waiting period required by guaranteed issue plans.
What You Need To Know About Funeral Planning
Planning ahead for funeral arrangements helps reduce stress and confusion during an emotional time. Understanding today’s costs, available options, and family preferences helps you rest assured your final wishes are honored without financial strain.
Cremation vs Burial
Cremation has become the more affordable and popular choice, now accounting for over 60% of all U.S. funerals. The average cremation costs between $4,000 and $7,000, while traditional burials range from $8,000 to $12,000, according to the National Funeral Directors Association (NFDA).
Funeral Service Options
Traditional funerals typically include a viewing, ceremony, and burial, offering a structured way for loved ones to grieve. Direct cremation eliminates those steps, significantly lowering costs and allowing families to hold a personalized memorial later.
Key Fact: According to the National Funeral Directors Association (NFDA), cremation costs average between $4,000 and $7,000, while traditional burials range from $8,000 to $12,000, and funeral costs have been rising by about 3% annually.
FAQs
Can you get burial insurance with no waiting periods or exams?
Yes. Simplified issue policies offer immediate coverage with only a few health questions, while guaranteed issue plans include a short waiting period before full benefits apply.
What’s the difference between final expense and burial insurance?
They’re essentially the same—both describe small whole life policies designed to cover end-of-life costs such as funerals, cremations, or medical bills.
Can you get burial insurance over 80?
Yes. Many insurers offer coverage up to age 85, though premiums are higher and coverage amounts are smaller.
About Bob Phillips
