Fact: According to the National Funeral Directors Association, the median cost for a funeral is $7,640.
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Depending on the type of memorial service you’d like, burial and funeral fees can be costly. Cemetery plots, service and wake fees, caskets, embalming, and headstones all add up to a hefty total that can burden surviving family members. That’s why it’s a prudent idea to invest in burial insurance.
Most burial insurance may be purchased without a medical exam, removing barriers that may keep some individuals from purchasing other life insurance products. They also act as a supplement to other life insurance products so you can make sure your loved ones are covered.
Burial insurance –– sometimes called funeral insurance or final expense insurance –– is a type of permanent life insurance policy with coverage that ranges anywhere from $2,000 to over $25,000. Individuals purchase a policy and pay monthly premiums so their beneficiaries may receive a death benefit or a lump sum of cash.
Individuals purchase this policy in order to cover funeral services. The death benefit may also cover end-of-life costs such as medical bills, unpaid debts, or other expenses. Unlike other forms of life insurance, burial insurance does not typically require a medical exam or health-related questions. Most policies have guaranteed approval for all individuals within the policy’s age range.
Fact: According to the National Funeral Directors Association, the median cost for a funeral is $7,640.
When ranking the top burial insurance providers, we looked for the following criteria:
| Company | Premium Estimate | Coverage Limit | Quoting Process |
|---|---|---|---|
| Mutual of Omaha | $68.50 per month | $10,000 | Online |
| AARP | $91 per month | $10,000 | Online |
| State Farm | $70.28 per month | $10,000 | Contact a local agent |
| Fidelity Life | $67.65 per month | $10,000 | Online |
| Gerber Life | $85.16 per month | $10,000 | Online |
*Quote for a 65-year-old man in Texas
Policies Offered: Guaranteed Acceptance Life Insurance, Level Benefit Plan
Issue Ages: 45-85 for all states except New York (50-75)
Monthly Premium: $68.50 per month for a $10,000 death benefit
Overview: Mutual of Omaha is a nationwide insurance company that offers whole life insurance policies that provide a death benefit for end-of-life expenses. There are two types of burial insurance available:
Claims are typically fulfilled within 24 hours of filing the proper documentation. Additionally, the cash value of the death benefit (premiums paid so far) may also be accessed while the individual is still alive to cover emergency expenses.
Mutual of Omaha has low premiums and allows individuals to purchase small policies (as little as $2,000) so this may be a good option for those on a tight budget or already hold Mutual of Omaha Medicare Supplement Plan. The only drawback is individuals typically have to talk to an agent to purchase a plan and the buying process can be long.
Policies Offered: Guaranteed Acceptance Life Insurance, Permanent Life Insurance
Issue Ages: 50-80 for individuals and spouses 45-80, except New York (50-75)
Monthly Premium: $91 per month for a $10,000 death benefit
Overview: AARP offers life insurance policies through the New York Life Insurance Company. Coverage is available up to $50,000. They offer two products that cover end-of-life expenses:
The only downside to AARP is that there is limited nationwide availability. There are different rates and coverage depending on the state you live in, and monthly premiums for each policy end at age 95.
To learn more about AARP and its benefits, be sure to read our guide: Is AARP Worth It?
Policies Offered: Final Expense Life Insurance
Issue Ages: 50-80 for individuals and spouses 45-80, except New York (50-75)
Monthly Premium: $70.28 per month for a $10,000 death benefit
Overview: State Farm offers nationwide insurance policies (except for Rhode Island and Massachusetts) and is known for its exceptional customer service. State Farm is a mutual insurance company, which means that burial insurance policies can accumulate in value or pay out dividends. A brief health questionnaire is required and smokers may receive a higher monthly premium. The great thing about State Farm is that there is a large network of local agents to talk you through all the details of insurance before you make a purchase.
Policies Offered: Simplified Issue Final Expense Insurance, Guaranteed Issue Final Expense Insurance
Issue Ages: 50-85
Monthly Premium: $67.65 per month for a $10,000 death benefit
Overview: Fidelity offers final expense life insurance policies with death benefits that range from $5,000 to $35,000. Fidelity prides itself on providing an easy-to-use website to purchase a plan quickly. The insurance lasts your entire life as long as you keep making payments. Beneficiaries receive the death benefit on a tax-free basis.
Fidelity offers two products:
The benefit may be used for funeral expenses but also for medical bills and leftover debts. Individuals may also make a funeral home their beneficiary so that the benefit goes straight to the organization planning your funeral. This policy is perfect for younger individuals with no health conditions, as premiums can get pricey for older individuals.
Policies Offered: Guaranteed Life Insurance Plan
Issue Ages: 50-80
Monthly Premium: $85.16 per month for a $10,000 death benefit
Overview: The Gerber Guaranteed Life Insurance policy provides a death benefit ranging between $5,000 and $25,000. As long as you fall within the age parameters, acceptance is guaranteed with no medical exam or health questionnaires. A portion of your monthly premium is set aside and is available as a loan during life if you need it. The application and approval process is easy and can be done online or via telephone. Individuals can also save up to 8% on monthly premiums by signing up for automatic payment deduction. If you ever decide to cancel your insurance, the individual receives the cash value of the death benefit so far.
According to the Bureau of Labor Statistics, funeral costs rose by over 95%. This includes costs for embalming, caskets, cremation, memorial services, and other funeral expenses. Depending on the type of service you want, these costs can add up. Funerals or other end-of-life expenses can be a hefty cost to leave for your bereaved loved ones. When determining what life insurance products you would like to purchase, these costs are critical to keep in mind.
To learn more about life insurance and end-of-life care, be sure to read our helpful guides:
If you’re 65 years old, then you can still get term life insurance for 10, 15, or 20 years from most major providers.
Burial insurance (sometimes called final expense or end-of-life expense insurance) is designed to cover funeral expenses. They often supplement more comprehensive life insurance policies. Individuals may purchase plans directly through an insurance provider or through a funeral home.
With some providers, it is possible to get a $900 death benefit for $9.95 per month.
Burial insurance covers typical funeral expenses like the price of a casket, burial plot, cremation, and memorial service fees. Many providers also allow you to use the death benefit for medical bills, unpaid debts, and other expenses. Some providers even allow burial insurance benefits to be used as an inheritance or charitable donation.
Social Security provides a death benefit of $255 for eligible individuals.
