How to Calculate Final Expenses and Burial Expenses

Written by Jeff Root

No one likes to think about death, let alone their own death. But with minimal planning, you can prevent your loved ones from being saddled with an unexpected financial strain during their time of grief.

With an affordable life insurance policy, you can protect your family against unnecessary debt and fights. Instead, take out a policy and plan for your final expenses.

What is Final Expense Life Insurance?

Final expense life insurance policies are designed to provide your loved ones with enough money to cover any of your final expenses after you pass.

This could include basic funeral services, embalming or cremation services, and smaller remaining bills. Most final expense policies have death benefits between $2,000 and $25,000.

Is Burial Insurance the Same as Final Expense Insurance? 

Final expense insurance is a bit different from burial insurance.

Final expense life insurance policies are designed to specifically cover final expenses and nothing more.

Burial insurance policies payout to a beneficiary upon your death whom may decide how to allocate the funds.

With this being said, final expense and burial insurance both have similar costs and policy options.

Pre-Need Funeral Insurance Plans

You can enter into agreements with funeral homes that you want to use to purchase something at cost now with the guarantee that they will provide you with the same item when you pass away without an increased cost.

Pre-need funeral plans into agreements ahead of time will help you to guarantee set rates right now not having to later calculate the cost of inflation which influences burial insurance rates.

How Much Does the Average Funeral Cost?

The average funeral cost in the United States 2017 ranged from $6,000 to $10,000. This an be difficult for some families to come up with on a short notice, which can put a lot of financial stress on them.

Funeral Home Costs
Casket $2,300
Funeral Directors Fee $1,500
Embalming & Preparation $600
Ceremony & Viewing $1,000
Miscellaneous (Hearse, Death Certificates, Obituary, etc.) $600
Cemetery Costs
Grave Space $1,000
Digging Fee $1,000
Headstone or Grave marker Costs
Headstone $2,000
Gravestone $1,000
Transfer remains to funeral home $200
Hearse $250
Limo $175

What to Expect for Final Expenses

When you are ready to search for a burial policy, you need to consider how much you want to spend.

This means reviewing different funeral prices, comparing what levels of service cost what amount of money, and then seeing what the cost of final expense policies are by comparison.

Funeral Costs

Funeral costs typically include the basic Services fee for the assistance provided by the funeral director and the staff, charges for Merchandising Services, and a cash advance if you so choose.

Funeral Fees

In terms of funeral fees, funeral providers can charge a basic see that includes services, to funerals, and most people have to pay this fee regardless of the specific arrangement into which they enter.

This cost covers securing permits, making copies of death certificates, preparing any notices, Sheltering your remains, and coordinating your arrangements with a third-party.

Services and Other

In terms of the services and merchandise cost, this includes the optional services like transporting your remains to a grave site, embalming your body, using the funeral home if you want to have a viewing or a memorial service, the use of funeral equipment and staff to conduct a graveside service, the use of a limousine or a hearse, the casket, the burial container, or the cremation and the urn.

Type of Service

If you want a traditional full-service funeral your casket is going to be the single most expensive item you purchased.

Caskets vary widely in terms of their style and their material. The average cost is around $2,000 but if you want something crafted from copper or mahogany this could cost up to $10,000.

State Burial Laws

Certain States have different burial laws which final expense life insurance and burial insurance policies must adhere to.

This includes taxation and rules related to burial and services. These different State burial laws can influence the cost of your burial insurance rates.

How Much Burial Insurance Coverage Can I Get?

Most of the best burial insurance companies offer between $5,000 and $25,000 burial insurance plans, with a few companies like American National offering up to $100,000.

How Much Does Burial Insurance Cost? 

The cost of final expense life insurance policies will vary based on your age. The older you are the more expensive the policy is going to be. Moreover, the amount of coverage you take out will directly influence the cost.

For most companies offering final expense policy, they charge you a specific rate based on your age for every $1,000 which is referred to as  a unit. So for every unit of coverage, you take out you pay more. A policy valued at $25,000 is going to cost more than a policy valued at $2,000.

Below are sample rates for a final expense policy with varying coverage. Keep in mind these are monthly premiums for people who are otherwise in good health.

The rates in the chart below are for 65 year olds. 

Face Amount Male Non-Tobacco Male Tobacco Female Non-Tobacco Female Tobacco
$5,000 $33 $43 $26 $32
$10,000 $67 $83 $48 $62
$15,000 $98 $124 $73 $91
$25,000 $160 $205 $119 $151

Burial insurance rates can also vary based on your:

  • Age
  • Health
  • Medical history
  • Family history.

For the most part, people from age 55-85 are able to find burial insurance rates that are very affordable for small coverage amounts.

Who is Burial Insurance Best For?

Honestly, burial insurance is not best for some people. For those who do not need immediate coverage, or who need life insurance coverage that is worth more than $25,000, this is not the ideal type of policy.

This type of life insurance is best suited for someone who is looking for a small amount of coverage to cover the cost of final expenses and burial expenses.

How to Find Affordable Burial Insurance Coverage  

Finding low burial insurance rates is pretty simple as long as you have the right tools to find great rates and the best burial insurance companies.


Burial Insurance Companies with the Lowest Rates

The following companies consistently offer some of the most affordable burial insurance.

Their burial insurance plans are rock solid in terms of coverage provide, and they also have rich histories of paying out client claims and providing excellent customer service.

On top of this, they have high financial ratings, and lots of burial insurance options compared to other life insurance companies that offer burial insurance out there.

Company A.M. Best Rating Customer Reviews
Liberty Bankers Life  B++ 4.2 / 5
Mutual of Omaha A+ 4.1 / 5
Americo A 4.3 / 5
Assurity  A- 4.4 / 5
United Home Life A- 4.0 / 5
Aetna B- 3.9 / 5
Gerber A 4.2 / 5
Prosperity A- 4.0 / 5

Get Quotes From the Best Burial Insurance Companies

Finding the best burial insurance rates and companies can be tough if you don’t know where to look. Luckily, we have all you need right here. You can use our online burial insurance quoting tool to find affordable burial insurance coverage from some of the best burial insurance companies on the market.

If you need assistance understanding your burial insurance options, or comparing policies, you can give our independent agents a call for immediate assistance. We have helped many clients find the best coverage for their loved ones, and know what it takes to get you the final expense insurance coverage you need to protect them.

About Burial Insurance Coverage
About Burial Insurance Coverage

We work with individuals across the nation to secure the best life insurance rates.

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