How Burial Insurance Companies Determine Pricing
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.