How Much Is Burial Insurance?
Key Takeaways
- Burial insurance costs can range from under $10 to over $150 per month. Your premium may be lower or higher depending on factors like age, sex, death benefit amount, lifestyle, and tobacco use.
- Final expense insurance provides a modest payout to cover funeral costs and outstanding debts, making it more accessible than traditional life insurance.
- Unlike other policies, burial insurance typically does not require a medical exam, and guaranteed issue options offer coverage regardless of health status.
Burial insurance costs can range from under $10 to more than $150 a month. Costs vary based on personal details, insurer, and policy specifics. Final expense life insurance is meant to cover your end-of-life and burial expenses, setting it apart from other life insurance.
If you’re interested in this type of insurance, keep reading to learn more about final expense life insurance costs.
Why You Should Consider Burial Insurance
Burial insurance can help your beneficiary pay off any outstanding debts you may have upon your death, like medical bills. The payout can also help cover funeral and burial expenses. The average funeral costs $7,848, which might be hard to handle without help from a life insurance policy.
Unlike other forms of life insurance that offer higher payouts, burial insurance payouts are modest in comparison because they are only meant to cover end-of-life expenses. As a result, burial insurance can be more affordable and accessible, especially for older people and those in poor health seeking to purchase life insurance.
Many standard life insurance policies require medical underwriting to determine the cost and eligibility of the policy. This entails undergoing a medical examination. Those who are older or in poorer health may be charged much more for coverage or denied coverage altogether.
Burial insurance, however, tends to have a more relaxed approval process. With guaranteed issue final expense life insurance, there’s no need to even complete a health questionnaire.
Is Paying for Burial Insurance Worth It?
To maintain your policy coverage, you pay a monthly premium. This ensures that your beneficiaries receive your final expense life insurance payout upon your death. For many people, paying a monthly premium is easier than saving up the roughly $8,000 they’ll need to cover a funeral.
If you saved $50 a month, it would take you over 13 years to reach $8,000. However, if you pay $50 monthly for burial insurance, you’ll get your benefit payout no matter when you die. Note that with some policies, there may be a waiting period. For example, some guaranteed issue policies may have a two-year waiting period where your beneficiaries only receive a payout if you do not pass within the first two years of purchasing the policy.
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Burial Insurance Cost
Burial insurance costs vary greatly. For a $10,000 policy, monthly premiums typically range from about $30 for a 55-year-old woman to over $150 for a 75-year-old man. Rates may differ greatly based on certain factors.
Factors That Can Affect Final Expense Insurance Premiums
Health status usually does not affect final expense life insurance rates because these plans don’t require full medical underwriting. You won’t need to get a physical or submit your health records to get coverage.
However, there are plenty of other factors that can impact your premium costs, including:
- Death benefit amount: The higher the insurance payout, the higher your premiums will be.
- Age and sex: Being older means your premiums will be higher. Being male also tends to increase your premium costs.
- Lifestyle and occupational risk: High-risk hobbies or jobs, like skydiving or firefighting, can increase your premiums.
- Tobacco usage: Even though most insurance companies don’t require medical underwriting, they may still consider your tobacco use. Your premium costs might rise if you smoke, vape, or chew.
- Plan perks: Plans with additional features, like a generous cash value growth perk or living benefits, can cost more than simpler plans.
Other Options to Consider
If you’re not sure burial insurance is the right option for you, there are other kinds of life insurance that may better suit your needs:
- Term life insurance: Unlike burial insurance, which lasts as long as you keep paying your premium, term life insurance is active for a certain period, usually between 10 to 30 years. If you die during the term, your beneficiaries will get a payout. If you outlive the term, there is no payout.
- Whole life insurance: Both burial insurance and whole life insurance last until you die. However, whole life insurance policies typically have a higher value, making them a better option if you don’t want to leave behind major debts, like a mortgage, or need income replacement to support your family when you pass.
- Guaranteed issue life insurance: Guaranteed issue life insurance doesn’t require a medical examination to get coverage. These policies are even more lenient with health requirements and guarantee coverage no matter your condition, though some may have age limits on how old you may be to purchase a policy. Some burial insurance policies are guaranteed issue.
Putting It All Together
Burial insurance can help your loved ones when you pass away. Final expense insurance costs can be cheaper than trying to save enough to cover the cost of a funeral on your own. You may find more affordable burial insurance coverage by working with a licensed insurance agent. They can help you learn more about your options and find the policy that’s right for you.
Sources
Average Life Insurance Rates. NerdWallet.
Statistics. National Funeral Directors Association.
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