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April 21, 2022
Burial insurance helps pay for final expenses like cremations, caskets, or funeral arrangements. Easier to qualify for than traditional whole life insurance, burial insurance provides your next of kin with a smaller benefit, typically between $5,000 and $25,000. Beneficiaries may also use the proceeds to pay off any outstanding debts such as medical bills or credit cards.
FYI: If you’re looking for end-of-life coverage, be sure to check out our rundown of the best burial insurance for seniors.
On average, burial insurance costs $25 to $75 monthly; however, this amount will vary by both provider and the person covered by the policy.
| Insurance Company | Monthly Cost for a Non-Tobacco-Using Man; $10,000 Benefit; No Health Exam |
|---|---|
| Aetna |
Age 50: $51 Age 60: $71 Age 70: $90 Age 80: $132 |
| Mutual of Omaha |
Age 50: $31 Age 60: $46 Age 70: $79 Age 80: $150 |
| AARP/New York Life |
Age 50: $61 Age 60: $83 Age 70: $111 Age 80: $141 |
| Gerber Life |
Age 50: $44 Age 60: $64 Age 70: $99 Age 80: $247 |
| Colonial Penn |
Age 50: $60 Age 60: $90 Age 70: $150 Age 80: Not eligible |
Monthly burial insurance premiums range in costs based on a number of criteria. Most commonly, these include gender, age, health, tobacco use, and the coverage (or benefit) amount of your policy.
Females in the United States tend to live about five years longer than males. As a result, burial insurance premiums for men can be 40 percent higher than those for women.
As you might expect, premium rates for final expense insurance increase with age. While burial insurance is specifically designed for seniors, most providers only offer coverage to individuals between ages 50 and 85. There are a few carriers that don’t require a minimum age, and a handful that, like Aetna, offer coverage to seniors over 85.
FYI: Make sure at least two family members, and, ideally your attorney, have access to a copy of where your burial insurance policy. Acquiring an official death certificate can take up to a month in some instances.
Your health influences your availability and cost of coverage more than any other factor. If you have a serious health condition (i.e., heart failure or cancer), you are more likely to be denied coverage, and the policies you are approved for can often be quite expensive. Fortunately for those who aren’t in prime health, many burial insurance policies are guaranteed acceptance, meaning they do not require a health exam or medical history. These plans, while usually a bit more expensive, typically save those with major health issues more money in the long run.
Smoking and other tobacco use will certainly influence the cost of your burial insurance policy, making your monthly premiums much higher than they would be otherwise. Fortunately, it does not usually disqualify you for coverage altogether. Some insurance will also take your frequency of tobacco use into consideration.
Your geographic location impacts the prices of almost everything –– funerals and memorials included. It’s important to have an up-to-date estimate of funeral and other end-of-life expenses in your area when purchasing burial insurance, so you can select the appropriate benefit amount. Keep in mind that the more coverage you buy, the more expensive your monthly rate will be.
On average the cost of a funeral in the United States exceeds $9,000. Other end-of-life expenses add up, too. Below is an itemized list of expenses most often associated with funerals.
To protect your loved ones financially, it’s essential that you think through all of the expenses we’ve mentioned as well as any other needs that may be specific to your family. That way you will have an accurate picture of the benefit amount you need.
When searching for burial insurance, you can either shop around directly with the providers or work with an independent agent who will research your options for you. If you decide to shop for a policy yourself, it’s wise to organize your needs and preferences ahead of time. Determine your ideal coverage amount and waiting period as well as the monthly payment you can afford. Note any health issues or lifestyle choices, such as smoking, that may affect policy costs.
If you smoke or have a major health condition, search online for insurers that offer affordable coverage for tobacco users or those with your specific conditions. Then, fill out the quote forms on the providers’ websites.
Compare the benefit amount, terms, and monthly premiums of each quote, then choose your provider. It’s important to remember that quotations are normally only valid for about 30 days, so you’ll want to make your decision and accept the quote from your selected provider within that one-month time frame.
To learn more about end-of-life planning and insurance options, be sure to check out our helpful guides:
