While many people don’t like thinking about death, it is important that you prepare for it as you would for any other major life event. After all, it is guaranteed.
It can be difficult in the light of someone’s death to recognize the looming cost of funeral and death expenses. The average funeral in the U.S. costs between $7,000 – $12,000.
For those who already have life insurance without this type of coverage, or for those who are seeking a life insurance policy that covers their family financially in the event of their death, burial insurance may be the best choice.
What is Burial Insurance?
Burial insurance provides your family support to pay for the expenses associated with your death. Usually, burial insurance policies range from $5,000 to $25,000. Burial insurance policies do not require a medical exam.
What are the Different Types of Burial Insurance?
Aside from burial insurance, there are two other types of burial insurance:
Final Expense Insurance
Final expense insurance differs from burial insurance in the way policies are paid out. Burial insurance strictly covers the expenses associated with funeral and burial expenses, whereas final expense insurance policies allow the beneficiary to determine how to use the funds.
Guaranteed Acceptance Burial Insurance
Guaranteed acceptance burial insurance, also called guarantee issue, offers guaranteed approval to applicants regardless of their health, age, or other factors. No medical examination is required.
For this reason, it is also the most expensive type of burial insurance.
Who Can Get Burial Insurance?
Qualifying for a burial insurance does not require you to pass lengthy medical exams or answer complicated health-related questions.
If you are under the age of 70, you can get affordable burial insurance easily. There are a few companies that even cover up to 85, 90, 100, 121 years!
For those of you in good health, you can get very affordable burial insurance rates. The younger you are, you will also recieve lower premiums.
What Does Burial Insurance Cover?
To avoid passing a significant financial burden on your family members, you should make sure that you have everything covered when it comes to your funeral.
Many individuals are unaware of the different expenses that are included in the funeral arrangements. It’s easier to understand the expenses covered by your burial insurance by looking at the offering of a particular insurance provider.
Some of the common expenses covered include:
The Benefits of Burial Insurance
Even though there are many insurance policies that provide coverage for end-of-life expenses, choosing burial insurance has some advantages.
Some of the benefits of having Burial Insurance are:
Burial insurance is a great option for seniors who are looking for a cheap alternative to term or whole life insurance that is affordable, and provides their family stability after they pass.
How Does Burial Insurance Pay Out?
There are 2 main ways that burial insurance policies are paid out:
This traditional life insurance option comes into effect immediately and has the maximum coverage offering. Premiums stay the same throughout the life of the policy, and the death benefit is rewarded immediately upon death with no waiting period.
In case you have extremely serious health conditions, a graded benefit life insurance policy can prove more suitable for you. According to this plan, your loved ones will need to wait for two years before becoming eligible for the full payout of your policy.
In case of your death within the first two years, your family members will receive an amount that is equal to the premiums paid.
Difference Between Burial Insurance & Final Expense Insurance
Another very common burial insurance option is Final Expense Insurance. Though both burial insurance and final expense insurance are similar to each other in many ways, there is a huge difference in the case of how the policies pay out.
In the case of final expense insurance, you can use the payout to pay off the deceased’s debts and other financial obligations as well. Whereas with burial insurance, the insurance will only cover the funeral costs.
Therefore, as an individual, it is best that you choose burial insurance if you feel you have no lingering financial obligations and will only need financial support for your funeral.
There is also pre-need funeral plans…
What is a Pre-Need Funeral Plan?
Another very similar policy is the pre-need funeral plan that gives the insured a chance to pay for their funeral within their lifetime. Only funeral homes offer this type of insurance. Often times, applicants work directly with them, or through insurance agents who work with them to get pre-need funeral plans.
You have the option of paying the whole amount at once or can make regular payments over time to create financial support for your family members after you die. The benefits of a pre-need funeral plan are the same as the burial insurance policy. The policies pay out immediately and are used to cover the costs of funeral services.
Top 4 Best Burial Insurance Companies
Before we get into the individual providers and the policies they offer, let’s take a quick look at the 4 Best Burial Insurance Companies:
|Company||A.M. Best Rating||Customer Satisfaction|
|Gerber||A||4.3 / 5|
|Transamerica||A+||4.0 / 5|
|Mutual of Omaha||A+||4.1 / 5|
|Foresters||A||3.8 / 5|
Now that we have taken this quick look at the best burial insurance providers, let’s take a deeper look into what makes these the best burial life insurance companies.
Gerber is a popular name when it comes to end-of-life insurance plans. The age limit set by Gerber is 50 to 80 years old and if you lie within this age bracket, you are eligible for the plans.
Gerber offers burial insurance plans covered by a guarantee that are also some of the most affordable plans out there in the market. The coverage amount for these burial insurance policies are between $5,000 and $25,000.
Lastly, Gerber has great customer service. Read more about their coverage in the full Gerber Life Insurance Review.
Another popular insurance provider that offers burial life insurance without any lengthy eligibility procedures is Transamerica. They offer three burial insurance policies individuals can choose from.
These include the 10 Pay Solution Plan, the Immediate Solution Plan, and the Easy Solution Plan. People suffering from serious medical conditions are also eligible and can apply.
3. Mutual of Omaha
An affordable and well-known name in the burial insurance market is Mutual of Omaha. Over the years, they have made a strong name for themselves by offering individuals between the ages of 45 to 85-burial insurance coverage of up to $40,000 in the Level Benefit Plan and up to $20,000 in the Graded Benefit Plan.
Mutual of Omaha is a dependable company with a great history of paying out claims and supporting customers. For more about their coverage options, read our Mutual of Omaha Life Insurance Review.
Foresters offer individuals the option of choosing either level burial insurance plans or graded. In the graded plan, the family members receive a 30% payout of the plan in case the insured passes away in the first year and a 70% payout if it happens in the second year.
The coverage options offered by Foresters range from $2,000 – $35,000. There are also accelerated living and accidental death riders that you can add to your burial insurance plan to gain additional coverage.
How Much Does Burial Insurance Cost?
So, by now, you are probably curious as to how much burial life insurance costs.
While burial insurance costs vary based on factors like health, age, coverage needed, family history, etc, let’s take some time to outline the expected cost of burial insurance for different age groups of men and women, and different coverage amounts.
First, let’s look at burial insurance policies for $5,000, for men and women ages 25, 35, 45, 55, 65, and 75:
Next, let’s look at burial insurance policies for $10,000, for men and women ages 25, 35, 45, 55, 65, and 75:
Now, let’s look at burial insurance policies for $25,000, for men and women ages 25, 35, 45, 55, 65, and 75:
Finally, let’s look at burial insurance policies for $50,000, for men and women ages 25, 35, 45, 55, 65, and 75:
While these are not guaranteed rates for your given health class, these charts serve to give you an idea of how much burial insurance can cost for your age range.
What is Burial Insurance – Wrapping it Up
Planning for your death may sound like a difficult task, nevertheless, it is an important one. By arranging for the cost of your funeral and burial, you can reduce the burden your family will bear.
This step also gives your family ample time to grieve. By choosing the right burial insurance plan, you will feel satisfied knowing that you have made all the necessary arrangements to protect your family from any additional financial burden before your departure.
One of the most important things you can do when applying for life insurance is to speak with an independent life insurance agent. Independent agents are not bound to any one life insurance company, and as a result, can get you the best burial insurance rates from the best providers.
Our agents are also experts in understanding how health complications can change pricing for life insurance and specialize in helping applicants find the best life insurance plan to protect their loved ones in the event of their death.