Burial insurance helps a family cover the expenses of someone’s passing. The cost of a funeral can quickly add up, leaving many families scrambling to put together several thousand dollars, sometimes on short notice.
This type of life insurance is a minimalist policy. The benefit is just enough to cover the costs of burial or cremation plus a service. Anything left over belongs to the beneficiary to use as they choose. Many people will pay off medical bills or donate the remainder to a charity.
Why is Burial Insurance Important?
Do you have an extra $10,000 laying around somewhere? Most people don’t. It’s difficult to try and save that much. The second you start making an effort, life always seems to get in the way with surprise expenses.
With the average cost of a funeral sitting just south of $8,000, it can really stress a family. Beyond the burial and memorial service, there can be other financial stresses too. If there are hospital bills or other debt, the funeral could just be the tip of the iceberg.
Burial insurance offers a low-cost way of making sure your family doesn’t scramble to come up with the cash to pay for these costs. It eases one cause of stress for the people you leave behind.
Do I Need Burial Insurance?
75% of families in America do not have $10,000 in liquid assets. 57% of families don’t even have $1,000. That gets a little nerve-wracking when you consider that everyone passes away eventually.
That leaves many families in debt trying to honor the final memory of someone they care about. The other choice is to not claim the body at all. In which case, the state handles it in accordance with the laws of the area. The family has no say or any right to the remains.
When most people are having difficulty saving up $10,000 or even $8,000, burial insurance is the most affordable way to ensure the send-off of a family member with the dignity they deserve.
If you are someone who has not given thought to your death expenses and do not have life insurance already, burial insurance may be best for you.
Burial vs. Term vs. Permanent Life Insurance
Burial insurance (also called funeral insurance or final expense) is a super low premium policy designed to cover the basic end of life expenses.
Policy benefits range from $5,000 to $15,000. The coverage lasts for life. It’s a smart solution to the common problem of trying to choose between the affordability of term insurance versus the staying power of permanent.
Term life insurance only lasts for a set number of years, usually between 2 and 30. However, once coverage ends, that’s it. The insurance company doesn’t owe you a thing. Term is not the ideal choice for end of life expenses even though it costs less than permanent insurance.
Permanent life insurance lasts for life. However, because everyone passes on eventually, permanent life insurance costs more than term life insurance. It serves different purposes than term.
Whereas term insurance looks at covering time limited scenarios, permanent life insurance lends itself better to estate planning. It covers things like final expenses, providing for a spouse or heirs, or covering estate costs.
Burial Insurance Sample Quotes for a 64-Year-Old
There are three policies that work well as burial insurance: final expense – level, final expense – graded, and guaranteed issue. All three of these life insurance policies allow for comparatively low benefit amounts.
They start at $5,000. Final expense policies offer up to $15,000 in benefits. With guaranteed issue policies, sometimes you can get even higher benefits.
Sample Rates for Final Expense – Level Benefits
Level benefits are ideal. It means that the amount of money your beneficiary will receive stays the same. If you pass on the first day your policy is in force, it will pay the full amount.
Level benefit policies are typically reserved for healthier people. Although that doesn’t mean you have to be in excellent health to get them. Most people in average and even below average health will qualify for level benefits.
The rates below are for 64-year-olds who don’t smoke. One of the perks on final expense insurance is there are no health classes.
Sample Rates for Final Expense – Graded Benefits
Once you get into graded benefits, some final expense policies have terms on them. Those rates are slightly lower than the ones you see here. All the rates below are from policies that last your entire lifetime.
The other thing to know about graded benefits is the benefit amount changes. The longer you hold the policy, the higher percentage of your benefits your beneficiary will receive.
For example, if you pass away within the first year of taking out the policy, your beneficiary might only get 110% of the premiums paid. The next year, they might get 80% of the full benefits.
Grading structures vary widely between companies. Take some extra time to make sure you and your beneficiary understand them.
Sample Rates for Guaranteed Issue Policies
Guaranteed issue policies are extremely simple. There is a short application, few (if any) medical questions, and no medical exam.
Talk to your insurance agent to see if a guaranteed issue policy is right for you or if a final expense with level benefits would be smarter.
What Does $5,000 and $15,000 Cover as Far as Funeral Expenses?
It’s hard to pin down specific numbers because funeral costs vary between states. Even within states, they vary between cities and counties.
The best way to reduce to cost of a funeral is by hosting it at someone’s home instead of a funeral home. The drawback is that you cannot have the traditional service with the viewing of the deceased.
If you minimize costs in other areas like on the casket or flowers, you can get closer to the $5,000 mark.
For $15,000 you can get a more ornate casket or urn. It will easily cover a service in the funeral home. You can also order flowers and hire musicians instead of making your own playlist.
Organizing refreshments between the service at the funeral home and interring the body is another way you can spend time celebrating someone’s life.
Best Burial Insurance Companies for a 64-Year-Old
These life insurance companies are our favorites for burial insurance. They have excellent track records with their claims. Their financial ratings are good, if not great. Plus, they’re affordable.
|Company||A.M. Best Rating||Customer Reviews|
|Assurity||A-||4.1 / 5|
|Foresters||A+||4.2 / 5|
|Mutual of Omaha||A+||4.0 / 5|
|Sagicor||A-||4.0 / 5|
|AIG||A+||4.2 / 5|
Assurity – LifeScape Level Benefits or Lifescape Graded Benefits
Assurity offers both a level and graded benefits for their final expense policy. With an A- from AM Best, their business longevity looks good. Their policies are simple and easy to understand.
LifeScape is a final expense policy that will last you for life. Their premiums are competitive, plus they’re fairly forgiving in their underwriting.
Foresters – PlanRight Level Benefits or PlanRight Graded Benefits
Foresters holds an A from AM Best and has for a long time. You don’t hear about them as much, but that’s because instead of spending money on an enormous marketing budget, they keep their prices low.
It’s difficult to find a policy more affordable than Forester’s final expense insurance. It’s one of the reasons they always end up on our favorites list.
Mutual of Omaha – Living Promise Level Benefits or Living Promise Graded Benefits
Mutual of Omaha is another excellent option for a final expense policy that will last your whole life. They also have the best AM Best financial rating, an A+ for superior financial strength.
Living Promise covers you for life for rates comparable to our other favorites.
Sagicor – Sage Term Life
Sagicor’s final expense insurance is a little different. It’s a term policy you can buy in a 10-year, 15-year, or 20-year term. They also offer a higher benefit amount than other final expense companies. You can get benefits all the way up to $25,000. Whereas most final expense policies limit you to $15,000.
With an A- from AM Best, their financial strength looks like they’ll be in the insurance business for decades to come.
AIG – Guaranteed Issue Whole Life
AIG offer guaranteed issue policies as their final expense option. Everyone gets approved. Your health doesn’t affect the rates, nor does it affect your ability to get a policy. There is no medical exam to worry about.
If your health presents a concern for life insurance, AIG’s Guaranteed Issue Whole Life may be the best option. With a solid A from AM Best, they’ll be there to take care of your family.
Burial Life Insurance for 64 Year Olds – Takeaways
End of life planning is draining. But like anything that requires discipline, doing it now is better than dealing with extra stress later.
Burial insurance can protect your family from going into debt on top of losing someone loved. The monthly payments are small in comparison to the large check that your beneficiary will get.
Burial insurance is a final way to protect your family, to show them that you love them.
Tips on Getting the Best Burial Insurance Prices
Know how much insurance you need. If you are buying the insurance for yourself, planning your own funeral can help itemize the costs.
It’s a little morbid, but you will get what you want. Plus, you’ll know exactly how much funeral insurance you need to get it.
Next, you will want to get in touch with an independent life insurance agent. Our agents work with dozens of the best burial insurance companies across the nation. Which means we can do all the comparison shopping for you.
Our agents will look at your unique circumstances. Then they will find the best handful of companies that will offer you the best burial insurance rates for 64 year olds.
Or, you can use our online quoting engine to get quick and easy burial life insurance quotes instantly and compare rates from dozens of the best burial insurance companies.