Best Ohio State Regulated Burial Plans

Written by Jeff Root

In Ohio, the department that handles all funeral and cemetery regulation and enforcement is The State of Ohio Board of Embalmers and Funeral Directors.

This organization has been serving the final needs of citizens of Ohio since 1904.

The laws and regulations that are set forth by this organization are up-to-date and very comprehensive. They focus on issues related to the final disposition of human remains and the attendant arrangements made by funeral homes and cemetery associations, as directed by embalmers and funeral directors.

One of the specific areas this regulatory body focuses on is Preneed funeral and burial plans. Many times in the past people have been taken in by unscrupulous scammers, purporting to be prepaid funeral organizations, when in fact they had no intention of ever providing the services that had been paid for.

With the advent of the laws surrounding preneed funeral and burial plans, Ohio has some of the strongest regulations and protections prepaid funeral and burial plan laws in the country.

Before we dive into this article, let’s take a second to outline what we will discuss in this article:

Table of Contents (click to go to section):

What is Burial Life Insurance?

Burial life insurance in Ohio is a small amount of permanent life insurance coverage that is guaranteed issue, meaning anyone can get it without a medical exam, regardless of their health. Said policies are smaller than traditional whole life insurance policies because they are designed only to cover the costs of funeral services when you pass away. The face value typically ranges between $2,000 and $25,000 though some companies offer selections for death benefits of $50,000. There are prepaid policies with coverage only for burial needs, and these range in face value between $2,000 and $10,000.

Why Is It Important?

Burial insurance is important because it affords you the ability to plan ahead of time for specifically what you want, while simultaneously alleviating any financial hardships that might fall on the shoulders of your loved ones at the time of your passing.

For many people, especially retirees on fixed incomes, there isn’t a way to secure a traditional insurance policy. Usually, people can’t obtain a tradition insurance policy because the terms can’t be met, age, price, or both. Sometimes there is a health issue or other mitigating circumstance. All these issues can be resolved with a prepaid burial plan.

For many people just knowing that their final needs and arrangements have been prepared by them, beforehand, is a comfort to them. With the regulations in place for Ohio residents, it is often a feeling of security that drives people’s desire to prepay their funeral.

The prepaid funeral arrangements can also reduce the stress on loved ones, during a very stressful and emotional time. When they could be vulnerable to manipulation and deception, or just paying more than they have too.

What is a Prepaid Burial Life Insurance Policy?

The prepaid burial life insurance policy is usually a low face value plan that covers some specific arrangements for the insured’s funeral, burial, or cremation. There is a term used specifically for this type of insurance policy within the law for Ohio. That is called in legalize a Preneed Funeral Plan.

Usually formed within a trust, or some registered third party with a state licensure, this type of policy covers many of the options and features of funeral whether it is a burial of cremation. Many times the insurance is paid within a certain term, like 5 or 10 years, for an already agreed upon sum, for specific items and options provided by a funeral home. Recently, in Ohio and other states, the trust can be held outside the funeral home, protecting the consumer from fraud or failure of the business.

Should You Prepay Your Funeral?

Many states have adopted new regulations pertaining specifically to Preneed funeral plans, or burial insurance, to protect consumers. In Ohio, these regulations are designed and enforced through a division of the state funeral board. This undertaking for more than 15 states recently and 27 states previously have brought preneed funeral plans and insurances into the 21st century.

Being safer than ever before, and purchased more than ever before, this type of plan or insurance is more popular than ever before. That is not to say these plans can’t be manipulated, defrauded, or embezzled, or even not honored when the times comes for delivery. The consumer must be careful, especially with companies based solely on the internet or mail order.

What is Included in a Prepaid Burial Service in Ohio?

The type of funeral can be just about anything you want, according to need and desire. Some states have a limit to how much can be spent on a preneed funeral plan, but many states offer their suggestions for a limit that people should spend. The restrictions are in place to reduce fraud.

Some of what could be included in a preneed funeral, burial, cremation:

  • Casket
  • Crematorium Fee
  • Casket Rental
  • Viewing Room
  • Service (religious, non-denominational)
  • Embalming
  • Cosmetic Reconstruction
  • Cemetery fees (1st year)
  • Flowers

How Much Does a Prepaid Funeral Cost in Ohio?

In Ohio, the average cost of a funeral is $7,024.00, which is very close to the national average of $7,000.00. If you go with a cremation, at a facility catering to that type of final arrangement the cost could be as low as $700.00 (without a service). Many people chose to have a full-service funeral or burial plan, prepaid with all the features and options they can.

This all-inclusive funeral plan is becoming more and more popular as the regulations and guarantees from state organizations are becoming more pronounced and enforced. Many people spend over $10,000.00 on their funeral arrangements though, if they plan on having a service of any kind.

How Much Does Burial Insurance Cost in Ohio? 

The following table shows some typical burial insurance rates in Ohio.

Age Face Amount Male Rate (Monthly) Female Rate (Monthly)
40                   $2,000 $12/mo. $11/mo.
$6,000 $13/mo. $12/mo.
$10,000 $20/mo. $18/mo.
$15,000 $31/mo. $28/mo.
50 $2,000 $7/mo. $6/mo.
$6,000 $16/mo. $17/mo.
$10,000 $26/mo. $25/mo.
$15,000 $38/mo. $36/mo.
60 $2,000 $9/mo. $8/mo.
$6,000 $24/mo. $21/mo.
$10,000 $38/mo. $33/mo.
$15,000 $56/mo. $48/mo.
70 $2,000 $14/mo. $12/mo.
$6,000 $38/mo. $33/mo.
$10,000 $62/mo. $55/mo.
$15,000 $92/mo. $80/mo.
80 $2,000 $26/mo. $22/mo.
$6,000 $73/mo. $60/mo.
$10,000 $120/mo. $98/mo.
$15,000 $180/mo. $146/mo.

As you can see, typically, based on life expectancy charts, burial insurance is the better deal in terms of coverage for what you are paying.

On the other hand, sometimes it is more convenient to have everything planned out already and it puts far less stress on the family of the deceased in the wake of their death.

Both policies have their own advantages.

Ohio State Regulations for Preneed Funeral Plans

In Ohio Insurance funded pre-need contracts are not subject to any pre-need law passed by the state. As such the State Board is not able to intervene in situations where wrongdoing has taken place involving pre-need insurance from an insurance company.

The Department of Insurance regulates insurance policies, but the State Board in Ohio regulates pre-need contracts which are funded by trusts.

Many funeral homes have taken issue with the fact that the licensing law by the State Board in Ohio failed to provide sufficient guidance as to what insurance agents were able to do with regard to discussing any pre-need arrangements with their consumers. As such this has been amended so as to provide better clarity for funeral homes and as a result, if you would prefer an insurance agent work on your behalf to set up directions for your final wishes, something they would do directly with funeral homes, that is not possible.

The following are the Ohio State Regulations for Preneed Funeral Plans:

  • Only somebody with a funeral director’s license can execute the pre-need funeral service contract. Agents can instead review price list with you and create an estimate for the cost that you would have to pay for the funeral you desire. They cannot, however, make any recommendations about your funeral services. These are all things that you can do directly with funeral homes in question.
  • Every pre-need contract whether it is funded through a trust or insurance has to contain a detailed set of the disclosures. You have to make sure that everything is listed.
  • Funeral homes have to transfer irrevocable pre-need contract funding if you request it. However, if your pre-need contract provides for guaranteed pricing, the funeral home has the right to charge a cancellation fee or a transfer fee to do so up to 10% of the value. This cancellation fee and transfer fee does not apply to any insurance funded pre-need contracts.
  • If you decide to cancel your plan you are legally able to do so within 30 days. After that point, cancellation policies must be followed based on what is included in your contract.
  • If you choose to change your funeral arrangements from one funeral home to another with a pre-need contract is up to the individual funeral home with which you made your original agreement to decide if you are able to do so and what the cost would be.
  • If the goods or services you have requested at the time of your contract are not legally available when you pass, the funeral home has to supply something that is similar in style and value. It is up to your appointed representative to determine whether they want to accept the substitution. If they decide to replace the unavailable items or services with something more expensive than what you paid, they will have to cover the difference in cost.
  • If the funeral home you have selected goes out of business or is no longer able to uphold your pre-need contract, you can choose another Funeral Home.

Answering Some Frequently Asked Questions About Burial Insurance

What are the Tax Implications?

For a preneed plan, you pay the taxes to the funeral home or establishment with which you have entered into an agreement.

What are the Best Ohio State Regulated Burial Plans?

Ohio has a list of available, reputable companies from which to choose. Obviously, they work hard to regulate the industry, but it is still up to you as the consumer to make sure you work with licensed establishments.

What is a Preneed Burial Contract?

A preneed burial contract is an agreement that you pay for now which then requires burial homes or funeral homes to provide you with the services or products that you require at the time of your passing.

What is a Prepaid Funeral Contract?

This is the same contact as a preneed contract, with the key difference being that you are required to pay for the entire contract up front, instead of paying for it at the time of your passing or in monthly installments along the way. This contract allows you to establish requirements for your funeral service and set them aside.

Is Embalming Required by Law in Ohio?

Ohio does not require embalming regardless of whether you opt for cremation or burial. Funeral directions can, at their facilities, advise embalming in situations where you have requested a viewing.

Finding the Best Ohio Burial Insurance Plan for You

Finding a good plan for your final expenses means talking with an independent agent. Our independent agents can help you to review different options, compare preneed plans with other plans, and lend a hand evaluating companies with whom you may work.

Within a matter of minutes, you can be reviewing and choosing the best plan for you. Get started now using our burial insurance quote tool for quick and easy burial insurance quotes!

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