Final Expense and Burial Insurance
Frequently Asked Questions
What does burial insurance cover?
Burial insurance, also known as final expense insurance, is a type of life insurance policy which can be used to cover the costs of your funeral and burial or cremation after your death. Your designated beneficiary will receive your death benefit funds, which they can then use according to your wishes.
What’s the difference between burial insurance and final expense insurance?
There is no difference. Burial insurance and final expense insurance are commonly referred to as the same type of insurance, and both can cover expenses in addition to just your “burial”, including some medical expenses and other funeral related expenses. Before purchasing burial insurance, be sure to check the policy’s details to see what type of expenses are eligible to be covered.
How much does burial insurance typically cost and what is the coverage amount for expenses?
The cost for burial insurance varies by age, gender, and how much coverage you are purchasing. Average monthly premium costs can vary from about $20 to $200 per month, and this range mostly depends on age. It is best to purchase burial insurance as early as possible to lock in a lower rate for the rest of your life.
Coverage amounts typically range from $5,000 to over $20,000 but some insurance carriers may offer minimums as low as $1,000.
Is there a waiting period for final expense insurance?
Yes, typically final expense insurance is guaranteed issued with a 24 month waiting period, which means that you will need to have the plan for two years before being eligible to receive the full benefit payout amount.
What does the average funeral cost?
Many people do not realize that the average funeral can cost over $7,500 and your loved ones could be faced with unexpectedly high expenses. As costs continue to rise, buying burial insurance can protect the financials of your loved ones and ensure your wishes are carried out.
Can my life insurance policy be used to cover final expenses for my burial?
Yes, your loved ones could use your life insurance benefit payout to pay for funeral expenses. However, keep in mind that there is a difference between Whole life insurance and Term life insurance. If you have a Term life insurance and you pass away after the term date of the policy, then there will be no life insurance payout amount. In comparison to Whole life insurance, it is more important for holders of Term life insurance policies to consider burial insurance.
Can final expense insurance be combined with life insurance?
Yes, final expense insurance is technically a type of life insurance and you are allowed to have final expense and life insurance at the same time. Some insurance carriers do offer a combined life insurance and final expense insurance plan.
What are the top insurance companies offering burial insurance?
Many different life insurance companies offer final expense burial insurance. Some of the largest companies include Mutual of Omaha, American Continental (Aetna), AIG, Transamerica, Royal Neighbors of America, and Foresters Financial.