Long term planning consists of a lot of different factors, one of which is burial insurance.
Funerals today are expensive, caskets alone can cost over $10,000. Even if you choose cremation, you’re still looking at $3,000-$5,000.
Snagging a burial insurance policy covers your family from most if not all funeral expenses. Depending on the policy you choose, you can purchase anywhere from $5,000-$40,000 in coverage.
Burial Insurance is also known as Final Expense Life Insurance and Funeral Insurance, don’t get confused by the different names, they are all the same thing.
Final Expense policies are whole life insurance policies. They come with the same four factors all whole life insurance policies have, fixed premiums for life, death benefits that never decrease, no expiration date due to age, and builds a borrowable cash value.
Don’t be overwhelmed trying to find a burial insurance company. Finding the best burial insurance company can be as easy as you make it, which is why we have done the legwork for you.
10 Best Burial Insurance Companies
Here are the 10 best burial insurance companies of 2020:
- Mutual of Omaha
- Globe Life Final Expense
- Colonial Penn
- Fidelity Life
AIG | Direct Guaranteed Issue Whole Life Insurance
AIG offers customers the option of taking a percentage of your death benefit if you are diagnosed with a terminal or chronic illness.
No other burial insurance is going to allow you to take out a percentage of your coverage prematurely.
They also have very competitive priceswhich are based entirely on your age and your gender. Anyone with a pre-existing condition who would otherwise bedisqualified or denied coverage from all other life insurance companies will still qualify for the AIG guaranteed issue option.
Is there a catch? This product is only available for people between the ages of 50 and 85. There is a two-year graded death benefit and the maximum coverage amount is $25,000.
Keep in mind, as mentioned, it does have the accelerated access solution so you can access all of your death benefits, tax-free if you are given 12 months left to live or diagnosed with a terminal illness.
Americo | Ultra Protector Series
Americo offers numerous whole life products, if you are between the age of 50 and 85, that help with final and burial expenses.
Americo’s final expense options include:
- Ultra Protector I: you will receive the full death benefit from day one
- Ultra Protector II: you will receive the full death benefit from day one
- Ultra Protector III: you receive full death benefit payable for accidental death
Your rates are guaranteed to never increase, there is no medical exam, just a few health questions and everyone can qualify for coverage.
Mutual of Omaha | Living Promise Policy
Mutual of Omaha has a level benefit final expense policy that will pay your beneficiaries up to $40,000 in coverage and the ages for qualification range between 45 and 85.
They also offer features like accelerated death benefits.
If you don’t want to answer a single medical question you can ask for the living promise graded benefit final expense policy.
This particular policy applies to applicants between the ages of 45 and 80s but the coverage is limited between $2,000 and $20,000.
If you pass away due to an accident, there is an accidental death benefit feature. If you outlive the 2 year graded death benefit which is 2 years in length then your beneficiaries receive the entire death benefit regardless of how you passed away.
This is an issued policy meaning you will receive coverage for the rest of your life. As long as you pay your premiums and there is no chance of being denied.
If you do pass away within the first two years of your policy your beneficiaries receive all of the premiums that you have paid to date plus an additional 10% interest so long as long as you didn’t pass away from an accident or suicide.
AARP | Guaranteed Acceptance Life Insurance
AARP isn’t an insurance company, but partners with New York Life to offer guaranteed acceptance life insurance.
As long as you’re between the ages 50-80, you can buy up to $25,000 in coverage. AARP also offers spouses between the ages of 45-80 the ability to apply for a policy.
Once you are 95, monthly premiums are no longer required. Your policy will stay in place for the remainder of your life.
Globe Life | Final Expense Insurance
Globe Life offers the first month of coverage for $1 and future monthly premiums as low as $3.49.
Offering anywhere from $5,000-$50,000, there is no waiting and no health exams. Not happy with your coverage?
Globe offers a money back guarantee.
Colonial Penn offers guaranteed life insurance for ages 50-85 with no medical exam or questions.
They also offer whole life policies up to $50,000 with no medical exam for ages 40-75.
Want a term life policy? Colonial offers policies for ages 18-75 as well.
Need coverage quickly? Fidelity offers immediate coverage through their RAPIDecision Final Expense program if you’re 50-85 in increments from $5,000-$35,000.
It covers with no medical exam and can kick in as soon as 2 minutes.
Fidelity also has several other whole and term life insurance options through its unique RAPID product line.
Unique for their coverage for smokers, Assurity offers burial insurance for almost all ages in every state except for New York.
They will cover certain pre-existing medical conditions such as COPD and stroke to name a few, without increasing your premium prices.
They also offer the option of simplified or guaranteed policies ranging from $5,000-$50,000.
Transamerica | Immediate Solution
Need immediate coverage?
Transamerica offers a no-wait policy for ages 45-85 ranging from $1,000-$55,000 in coverage depending on your age.
Their policy also offers riders insuring should you need immediate nursing home care or any other long term care and riders of term life insurance for any children or grandchildren.
Gerber | Guaranteed Issue
Gerber offers coverage for those who have serious medical conditions not typically covered by life insurance companies.
Offered for ages 50-80 in values of $5,000-$25,000.
They have a graded benefit policy that has the 2 year waiting period, however should you die accidentally, your family will be awarded the full death benefit.
If you happen to pass from natural causes, your family will receive the premium amounts you’ve paid up until that point plus 10%.
Why Choose Burial Insurance?
Here are a few reasons burial insurance is a great fit for you:
1. You Can’t Be Turned Down
Yep, you read that correctly. The first reason is that you cannot be turned down. As long as you’re between the ages of 50-85, you qualify.
Your current and previous health conditions do not matter.
2. No Medical Exams
These policies do not demand medical exams.
Depending on the type of burial insurance you choose, you may not need to answer any health questions as well.
Most companies that provide burial insurance have two options: simplified issue and guaranteed issue.
- Simplified Issue: Companies may dig into your medical and prescription histories, but do not require a medical exam and offer higher coverage amounts. The underwriting process is more lenient than the traditional life insurance underwriting process and usually offers almost instant approval. Simplified Issue bypasses the 24 month waiting period required by Guaranteed Issue.
- Guaranteed Issue: Guaranteed Issue offers no medical exams AND no medical questions. No matter your current or previous health histories, you are guaranteed coverage. Guaranteed issue comes with a 24 month waiting period. Essentially, life insurance companies play a game of chance. If you die before the 24 month period, your family receives all the money you’ve paid towards the policy. After the 24 month period, your family is given the full death benefit. The guaranteed issue has slightly lower death benefit amounts but will not ask you a single question.
3. Premiums Paid = Policy in Effect
If you pay your premiums, your policy will not lapse. Your policy remains in effect at all times so long as you pay your premiums.
You never have to worry about having insufficient funds for your burial cost.
4. Level Premiums
Your premiums never increase due to new health concerns. The premiums remain the same for the duration of your policy, which means the costs will stay manageable.
And no matter what happens to your health those costs remain level.
5. Living Benefits
Finally, you can enjoy living benefits if necessary. Very few policies today offer this feature without extra costs.
Traditionally, individuals who would otherwise be disqualified from those policies can still take advantage of the living benefits in the event that they are diagnosed with critical or terminal illness through a burial insurance policy.
Should I Get Burial Insurance?
Traditionally, burial insurance is a more expensive type of life insurance.
You get a smaller death benefit while paying a higher monthly premium than traditional term life insurance. If you’ve been denied traditional life insurance, final expense or burial insurance may be the best choice.
Known for fast approvals and insuring “at-risk” individuals, Burial Life Insurance guarantees your family financial peace at the time of your death. Burial insurance is very expensive based on the smaller considering the amount of coverage that you received.
Think of it this way, burial policies give your family enough money to bury you. If you have a larger policy, any money left over may be used to settle any debts or even provide a small inheritance.
The amount of coverage is specifically for your burial costs. In fact, the money cannot be used in any other form for any other purpose.
It is a simple form of coverage because insurance providers cannot verify or collect any information about your health which makes it very convenient for people who do have high-risk health problems and only want to provide money for their final expense after they pass away.
If you have a pre-existing health condition or you are significantly older and would otherwise be disqualified from fully underwritten coverage, burial insurance is going to be the best option because of the limited amount of health questions that are asked and the guaranteed issue.
The Limited coverage typically only affords you money for your burial services. You will not get money to pay off your mortgage or send your kids to college. There are no medical conditions that would preclude you from qualifying.