Burial insurance is something you can get for yourself to provide for your family. It’s also something you can get for a spouse or a parent, with their consent.
It’s a small life insurance policy that gives enough money to pay for most funerals. That way no family member is left struggling with grief and debt.
Why is Burial Insurance Important?
Burial insurance, sometimes called funeral insurance, provides money for your family when everyone else is asking them for cash. It’s a way for families to honor your wishes without trying to tighten their belts to do it.
Most people don’t have $8,000 on hand. If they do, it’s usually in their retirement accounts or an illiquid investment. Social security only pays a couple hundred bucks toward funeral costs, which is nowhere near enough.
This next fact is depressing, but thousands of bodies remain unclaimed each year across the United States. If your family can’t afford a funeral, they’re left with a hard choice, leave a loved one unclaimed or go into debt
Burial insurance negates all that. It’s a permanent policy that stays with you for life. The best part is that it costs less than even a term policy.
How Many Families Have 10 Grand Saved Up?
One-quarter of households in the US have $10,000 immediately available to them. Today, 57% of households have less than $1,000 or no savings at all.
What does that mean for your family? It makes someone’s passing financially difficult on top of emotionally difficult. Yet there are a few ways around this.
The first is you can start saving up. Make sure you have this money in an account that someone will have immediate access to. A shared bank account or a pay-on-death account both work.
Depending on your income, saving up can take time. Even if you put a little away each month, you need time on your side to create compound interest.
The only other efficient option (that isn’t going into debt) is burial insurance. It will cost you less every month than what you need to save up yourself.
Burial Insurance vs. Term Insurance vs. Permanent Insurance
The two normal types of life insurance are term and permanent. Burial would fall until the umbrella of permanent life insurance since it lasts for life. However, burial insurance is designed for much lower benefit amounts. Just enough to help your family cover the expenses of a funeral.
Term Life Insurance
Term insurance is no longer available at age 74. It lasts for a set number of years. After that, the policy expires.
Permanent Life Insurance
Permanent insurance is more expensive. So long as you don’t let your policy lapse by not paying your premiums, the insurance company has to pay out. Because they must pay out, they also have to charge more.
Burial insurance is a blend of the two. Plus, it brings the best qualities of both. It lasts for your life and is guaranteed to pay out. But it’s affordable. A permanent policy would be many times more.
Level Benefit Burial Insurance Rates for 74 Year Olds
There are three different tables below. Each shows a different product. The first two are burial insurance. The insurance industry calls them final expense policies. The third is called guaranteed issue.
These rates are for 74-year-old men and women showing the range of benefits you can get with final expense – level benefits. Level benefits are important.
They mean that your beneficiary (the person who receives the money) will get the same amount whether you die tomorrow or in 30 years.
Graded Benefit Burial Insurance Rates for 74 Year Olds
The difference between graded and level benefits is that graded benefits change as you hold the policy. The usually won’t pay your beneficiaries the whole benefit amount until you’ve held the policy for 3 (sometimes 5) years.
Graded benefits are a way to insure people in below average health. Policies typically cost a little more, but the family can still get coverage.
Guaranteed Issue Burial Insurance Rates for 74 Year Olds
Guaranteed issue policies make the entire life insurance process easy. There is no medical exam. There are almost never medical questions.
Guaranteed issue policies commonly have graded benefits. Make sure the person who will oversee your memorial service understands how any grading works.
How Much Burial Insurance Do I Need?
The average funeral and burial is just under $8k. It’s the same amount for the average funeral and cremation.
Of course, it depends on where you live. $8k is a national average. It might be less where you live or more.
There are ways you can whittle that average down. Choosing a less ornate casket or urn can cut down that cost by $1,500. You could also hold the memorial service somewhere other than the funeral home. That can reduce the cost significantly as well.
Anything you want to save money on, you can also upgrade. Picking a more elaborate coffin, urn, or headstone can drive the cost up quickly.
Tips for Getting the Best Burial Insurance Rates
Work with an independent agent. They’re there to help shop the market for you. Instead of calling each company yourself and trying to compare quotes, you only have to make one call.
All insurance agencies set their prices with the state. That means they don’t have sales, discounts, or other price reductions by going through one particular agent.
Independent agents can look through dozens of companies to choose the right one for your family. Not fit your family in with whatever they happen to offer.
The next best thing to do is look into how much the average funeral costs in your area. That can give you the best idea of how much burial insurance you need. If your town averages $6,000, that’s great. If it averages closer to $10,000, at least you will be prepared.
Buying slightly over average can help prevent any surprise costs. The money left over belongs to your beneficiary to use as they see fit. It can go to pay off any medical bills or debts. Other people request it sent to charity. It can also be a thank you to the person who does all the work organizing your memorial service.
Best Burial Insurance Companies for a 74-Year-Old
Our top 5 favorite companies for final expense policies are Assurity, Foresters, Mutual of Omaha, Sagicor, and AIG. All of these companies have A- or higher ratings with AM Best and excellent customer service. We also chose these five based on the affordability of their policies.
Like with any list, these companies are a guideline for what works well with many families. If none of these companies are right for you, that’s okay. It’s more important to fit the best company for your family than to follow a list.
|Company||A.M. Best Rating||Customer Reviews|
|Assurity||A-||4.1 / 5|
|Foresters||A||4.0 / 5|
|Mutual of Omaha||A+||4.2 / 5|
|Sagicor||A-||4.0 / 5|
|AIG||A||4.2 / 5|
Assurity – LifeScape Level Benefits & LifeScape Graded Benefits
Assurity offers both graded and level benefits on their final expense policy. Their prices are competitive. When they’re not the lowest price in every category, their forgiving underwriting can make up for it. So if your health isn’t quite what it should be, try for the level policy.
They hold an A- from AM Best, so they’re in good financial standing.
Foresters – PlanRight Level Benefits & PlanRight Graded Benefits
Foresters frequently wins the low-pricing competition. PlanRight lasts for life. Which means as long as you pay your premiums, your policy will be there for you. With both level benefits and graded benefits, you can find a policy that fits your situation.
AM Best gives Foresters an A for excellent financial strength.
Mutual of Omaha – PlanRight Level Benefits & PlanRight Graded Benefits
Mutual of Omaha excels across all types of life insurance. Their competitive rates compared with both level and graded benefits are a smart option for many families. Their underwriting is also generous. If you have some health concerns, Mutual of Omaha might be the way to go.
They have an A+ from AM Best, meaning they are in superior financial standing. Their customer service is also superior.
Sagicor – Sage Term Life
Sagicor’s solution to a final expense policy is term burial insurance rather than permanent. This can cut down the cost of a policy. You can get Sage Term Life in a term of 10, 15, or 20 years. They also have a $25,000 benefit limit instead of the regular $15,000.
Make sure when looking at final expense insurance, you evaluate the pros and cons of choosing a term. But if you decide to go with a term policy, Sagicor’s A- rating from AM Best makes them a solid choice.
AIG – Guaranteed Issue Whole Life
Not everyone has the good fortune to have perfect health at age 74. If your health is mediocre, you might consider guaranteed issue burial insurance. The prices are similar to graded benefit final expense policies, but there is no medical exam. Everyone is accepted.
Their guaranteed issue policy lasts for life. No matter what, you’re covered. AM Best places AIG at an A rating for excellent financial standing.
Talk with your independent insurance agent about whether a guaranteed issue policy is best for you.
Burial Insurance for 74 Year Olds – Final Thoughts
By being prepared, you save your family some extra stress. Burial insurance will always be there to cover your needs. You can get it for yourself and designate your spouse or trusted family member as the beneficiary. You could also choose to get it on your parents, with their consent.
Burial insurance is a low-cost, versatile type of life insurance designed to cover the end-of-life expenses. The policy is there to hand your family a check, so they have one less thing to worry about.
Finding the Best Burial Insurance Rates for 74 Year Olds
When it comes to finding the best burial insurance rates, it is important to compare all of your options before making a decision.
The best way to do this is to speak with an independent life insurance agent who can help you understand and compare all of your life insurance options from policies to companies to rates.
Give us a call today to speak with an agent, or get started using our online quoting engine for quick and easy burial insurance rates.