What Does Burial Insurance Cover in Final Expense Policies

Burial insurance, also known as final expense insurance, is a type of life insurance that's designed to cover the costs of a funeral and other end-of-life expenses.

It's a relatively affordable way to ensure that your loved ones don't have to bear the financial burden of planning and paying for your funeral.

Typically, burial insurance policies can be purchased by individuals aged 50-80, with some policies available to those as young as 40.

The coverage amounts vary, but most policies range from $5,000 to $50,000.

Final expense insurance is a type of permanent life insurance designed to cover costs that arise at the end of life.

It's relatively easy to qualify for, making it ideal for older individuals or those who have health issues. The average cost of a funeral with burial and a viewing is $7,848, according to the National Funeral Directors Association.

This type of insurance can provide the money needed after your death to help ease the financial burden on your loved ones. The money can pay for virtually anything your loved ones need, not just funeral expenses.

Final expense coverage can make a big difference in reducing stress for your family and friends during an emotionally difficult time.

Burial insurance can cover a wide range of costs associated with a person's death, including embalming, a casket, flowers, and cremation costs. These costs can add up quickly, with the average funeral with burial and a viewing costing $7,848 according to the National Funeral Directors Association.

Your loved ones may not have access to that much money after your death, which could add to their stress. Burial insurance can provide the money needed after your death, making it a vital part of your end-of-life planning.

Here are some of the specific costs that burial insurance can cover:

In addition to these costs, burial insurance can also be used to cover the deceased's outstanding debt, such as medical bills, credit card debt, or even a mortgage.

Burial insurance policies are not actually policies, but rather small whole life insurance policies sold to older customers. They're often marketed as a specific type of coverage, but that's not entirely accurate.

There are two main types of policies: simplified issue and guaranteed issue. Simplified issue policies provide life insurance without a medical exam, but you'll need to fill out a health questionnaire. This type of policy is a good option if you're a senior in relatively good health, but be aware that certain health conditions can disqualify you.

Guaranteed issue policies skip the medical exam and health questionnaire, offering coverage with no questions asked. However, this type of policy typically costs more to compensate for the extra risk, since the insurer has no information about the person they're insuring.

Burial insurance isn't a policy, but rather a marketing term for a small whole life insurance policy.

There are two main types of policies: simplified issue and guaranteed issue. Simplified issue policies provide life insurance without a medical exam, but you'll need to fill out a health questionnaire.

Simplified issue policies can be denied if you use a wheelchair, reside in a nursing home, or live with a serious health condition like cancer, diabetes, or heart disease.

Guaranteed issue policies skip the medical exam and health questionnaire, and offer coverage with no questions asked. They typically cost more to compensate for the extra risk.

Relatively small policies can be a good option for many people, but they may not provide hundreds of thousands of dollars to pay off a sizable home loan. This is because traditional final expense policies are designed to cover essential end-of-life costs, not large debts.

A relatively small policy can still be a good starting point, and it's often more affordable than larger policies. According to the article, the relatively small size of final expense coverage makes them affordable for many.

It's worth noting that traditional final expense policies may not provide the same level of coverage as other forms of insurance. For example, if you have a large mortgage, you may want to consider purchasing other forms of insurance to ensure you have enough coverage.

Here's a breakdown of the types of expenses that final expense policies typically cover:

This list highlights the importance of considering your specific needs and expenses when choosing a policy. By understanding what you need to cover, you can make a more informed decision about the type and size of policy that's right for you.

Mutual of Omaha offers a range of guaranteed acceptance policies for those aged 45-85. There are no health questions to answer.

Their policies start at $2,000 in most states and go up to $25,000. This makes them a great option for those looking for a smaller policy.

If the insured passes within two years of the policy effective date, 110 percent of premiums paid replace the death benefit amount. This is a common feature in guaranteed acceptance policies.

Mutual of Omaha's policies are designed to be affordable and accessible, making them a great option for those who may have been declined by other insurance companies.

Here are some key features of Mutual of Omaha's policies:

Burial insurance is often more affordable than you'd think, thanks to its relatively small coverage amounts. Coverage ranges from $5,000 to $50,000.

The affordability of burial insurance is due in part to its lower coverage amounts compared to traditional life insurance policies. It's a budget-friendly choice for seniors and those on fixed incomes.

Average monthly premiums for simplified issue policies can vary depending on age and coverage amount. For example, a 60-year-old woman can expect to pay around $47 per month for a $15,000 policy.

Here are some average monthly premiums for simplified issue policies for women:

Keep in mind that these rates are averages and may vary depending on individual circumstances.

Female Simplified Issue Policy Premiums can be a significant factor in determining the overall cost of life insurance.

The average monthly premiums for female simplified issue policies vary greatly depending on the coverage amount and age. For example, a 50-year-old woman can expect to pay around $24 per month for a $10,000 policy.

Here's a breakdown of the average monthly premiums for female simplified issue policies at different ages and coverage amounts:

As you can see, the premiums increase significantly with age, with an 80-year-old woman paying around $98 per month for a $10,000 policy.

Affordability is a major concern when it comes to final expense coverage. Coverage ranges from $5,000 to $50,000, making it surprisingly affordable for many people.

The average cost of a funeral is around $7,000 to $12,000, which includes a casket, viewing, and burial. This is a significant expense that can be eased with burial insurance.

Burial insurance, also known as final expense insurance or funeral insurance, is a budget-friendly choice for seniors and those on fixed incomes. It helps pay for funeral and burial costs, covering expenses from $5,000 to $35,000.

Here are some estimated costs that burial insurance can help cover:

These costs can add up quickly, but burial insurance can provide peace of mind and protection for your loved ones.

If you're considering burial insurance, you might want to explore other options that can help cover end-of-life expenses. Term life insurance is a cheaper option if you're in your 50s or 60s, healthy, and willing to take a medical exam, with lower average life insurance rates compared to other types of coverage.

You can also prepay for funeral and burial costs with funeral insurance, which can be a good choice if you don't have any other debt or expenses to take care of when you die. Alternatively, you can allocate money for your funeral or burial in your will, but be aware that the funds may not be paid out to your family in time.

If you're looking for more options, here are a few alternatives to burial insurance:

These options can provide a more affordable or flexible way to cover your final expenses, depending on your financial and personal situation.

If you're considering burial insurance, it's worth exploring other options. Term life insurance can be a cheaper alternative, especially if you're relatively healthy and willing to take a medical exam.

Term life insurance offers temporary coverage, which can be a good fit if you're in your 50s or 60s and want to save on premiums. It's typically cheaper than burial insurance, with lower average life insurance rates.

Funeral insurance is another option that allows you to prepay for funeral and burial costs. This can be a good choice if you don't have any other debt or expenses to take care of when you die.

You can also allocate money for your funeral or burial in your will, but be aware that the funds may not be paid out to your family in time.

Here are some alternatives to burial insurance:

If you're looking for a burial insurance provider with a user-friendly application process, AARP is a great option. Their application process is designed to be easy to navigate.

For those who value flexibility in their insurance coverage, Colonial Penn offers a range of options.

Gerber Life stands out for its guaranteed acceptance policy, meaning you're likely to be approved for coverage without much hassle. Their policies offer coverage amounts ranging from $5,000 to $25,000.

Mutual of Omaha is a good choice for those on a budget, offering affordable coverage options ranging from $2,000 to $25,000 (with a higher limit available in Washington state).

State Farm's burial insurance policies come with a cash value component, which can be a nice perk for those who want to get the most out of their policy.

Here's a quick rundown of some popular burial insurance providers and their key features:

AARP is a great resource for seniors looking for burial policies and life insurance.

The American Association of Retired Persons offers these policies in collaboration with New York Life.

One of the benefits is that acceptance is typically guaranteed, without the need for a health questionnaire.

However, you do need to be an AARP member to qualify, which costs $16 a year for standard membership.