Burial insurance is a form of whole life insurance that gives you a limited death benefit.
As with other whole life insurance policies, your coverage remains in effect so long as you pay your premiums and it has the potential to build a moderate cash value.
The biggest restriction that you will find with burial insurance is that the increments are typically less than $25,000.
You cannot get a policy for someone else, but you can certainly explain the benefits they get.
The trade-off is that you are not asked any health questions when you apply.
You don’t have to undergo a medical exam. The quotes that you received our base entirely on your gender and your age.
This is the simplest form of coverage that offers an easy online application and is guaranteed.
The downside here is that your clothes are going to be more expensive compared to any other life insurance product because you are forgoing any health details.
As a result, the life insurance companies are going to assume that you are a high-risk client. They will still offer you insurance but in exchange for higher premiums.
Frequently Asked Burial Insurance Questions
Before we take a look at the best burial insurance companies, let’s take some time to answer some frequently asked questions we receive regarding burial insurance:
Should I Get Burial Insurance?
Burial insurance is very expensive considering the amount of coverage that you received. 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 covered 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.
Why Choose Burial Insurance?
When you are deciding between companies and policies there are a few reasons why you would choose burial insurance over any other life insurance products:
1. You Can’t Be Turned Down
The first reason is that you cannot be turned down. If you are roughly between the ages of 50 and 85 no matter your age, health, or other life circumstances you will not be turned down for coverage.
2. No Medical Exams
You also do not have to take on any type of medical exams or answer any health questions if you don’t want to. Most companies that provide burial insurance have two options one of which is a simplified issue and the other is a guaranteed issue. The simplified issue does have slightly higher coverage amounts and will ask a handful of questions but still doesn’t require the examination. The guaranteed issue has slightly lower death benefit amounts but will not ask you a single question. You get to choose which you prefer
3. Premiums Paid = Policy in Effect
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
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 and people who would otherwise be disqualified from those policies can still take advantage of the living benefits in the event that they are diagnosed with a critical or terminal illness through burial insurance policy.
How Do the Death Benefits Work? – Graded Death Benefits
One thing to note is that there is a slight hiccup associated with burial insurance policies and that hiccup is called the graded death benefit. With fully underwritten life insurance policies your policy goes into effect as soon as you sign up. So you could pass away the very next day and your beneficiaries would still receive the full death benefit.
But with burial insurance, there is a graded death benefit because of the high risk that you likely pose. These situations there is a waiting period so your policy doesn’t go into effect immediately. That waiting period is typically two or three years. If you pass away from natural causes within the first two or three years of your policy than your beneficiaries do not get the death benefit.
Instead, they only get the premiums you have currently paid to date plus interest which is typically about 10%. If you pass away after the graded death benefit amount of time then they receive the full burial insurance policy.
Which Companies Are Best for Guaranteed Life Insurance?
When it comes to finding the best burial insurance companies, there are a number of factors we took into consideration when ranking our top picks:
- Competitive burial insurance rates
- Number of burial insurance policy options
- Policy availability (who can purchase them)
- Financial strength
- Customer reviews
Based on the criteria listed above, AIG, Americo, and Mutual of Omaha are your best options.
|Americo||AIG||Mutual of Omaha|
|Waiting Period||3 years||2 years||2 years|
|Payout||Year 1 – Premiums paid + 5% interest
Year 2 – Premiums paid + 10% interest
Year 3 – 75% of death benefit year
+ 10% interest + 20% interest
AIG Guaranteed Issue Whole Life Insurance
AIG is the best because they allow you to take out some of your death benefits 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 prices which are based entirely on your age and your gender. Anyone with a pre-existing condition who would otherwise be disqualified or denied coverage from all other life insurance companies will still qualify for the AIG guaranteed issue option.
The catch here is that 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.
However 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.
The average cost of their whole life insurance ranges between $227 and $300 for a 40-year-old applicant.
The average cost of their whole life insurance ranges between $595 and $690 for a 50-year-old applicant.
Americo’s Eagle Premier Guaranteed Life Insurance
With Americo, you can receive the Eagle Premier level with the added accidental death benefit feature without having to pay any additional cost.
This means that your family will receive two times your death benefit if you pass away from bodily harm within 90 days of sustaining an injury.
If you have diabetes or you are a smoker you still qualify for coverage and your premiums are not raised nor is your policy canceled at any time.
They do not ask invasive medical questions in order to issue a policy.
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 have 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 one is also available for applicants between the ages of 45 and 80s but the coverage provided is limited between $2,000 and $20,000.
If you pass away because of an accident there is an accidental death benefit feature. If you outlive the graded death benefit which is 2 years in length than your beneficiaries receive the entire death benefit regardless of how you passed away.
This is an issue policy which means you will receive coverage for the rest of your life so 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 you didn’t pass away from an accident or suicide.
Other Great Burial Insurance Companies to Consider
These top 3 burial insurance companies are not the only ones on the market. Plenty of other highly regarded life insurance companies offer burial insurance plans that are affordable and easy to secure.
Here are some runner-ups for the best burial insurance companies in 2018:
|Company||A.M. Best Rating||Customer Reviews|
|Assurity||A-||4.2 / 5|
|United Home Life||A-||4.1 / 5|
|Liberty Banker’s Life||B++||4.0 / 5|
|American National||A||4.1 / 5|
|Foresters||A+||4.3 / 5|
Here are a few of our reviews for other large brands:
- Ameritas FLX Living Benefits
- Colonial Penn
- Lincoln Heritage Funeral Advantage
- Prosperity Life Insurance
- State Farm
Finding the Best Burial Insurance
Finding the best burial insurance can be as easy as you make it. While there are plenty of options out there, and they all make it easy to apply for coverage, the only real way to make sure that you are getting the best burial insurance coverage for you and your family is to work with an expert.
Our independent life insurance agents work with dozens of the best burial insurance companies on the market in order to help our clients find the best burial insurance companies, rates, and policies for their family.
Give us a call today to work with an expert and make sure that you find the best burial insurance coverage for you and your loved ones. Or, get started using our online burial insurance quote tool for quick and easy burial insurance quotes!