Casey BondContributor
Casey Bond is a seasoned personal finance writer and editor. In addition to Forbes, her work has appeared on HuffPost, Business Insider, Yahoo! Finance, MSN, The Motley Fool, U.S. News & World Report, TheStreet and more. Casey is also a Certified Personal Finance Counselor. Follow her on Twitter @CaseyLynnBond.
Casey Bond
Casey BondContributor
Casey Bond is a seasoned personal finance writer and editor. In addition to Forbes, her work has appeared on HuffPost, Business Insider, Yahoo! Finance, MSN, The Motley Fool, U.S. News & World Report, TheStreet and more. Casey is also a Certified Personal Finance Counselor. Follow her on Twitter @CaseyLynnBond.
Contributor
Michelle MegnaLead Editor, Insurance
Michelle is a lead editor at Forbes Advisor. She has been a journalist for over 35 years, writing about insurance for consumers for the last decade. Prior to covering insurance, Michelle was a lifestyle reporter at the New York Daily News, a magazine editor covering consumer technology, a foreign correspondent for Time and various newswires and local newspaper reporter.
Fact Checked
Michelle Megna
Michelle MegnaLead Editor, Insurance
Michelle is a lead editor at Forbes Advisor. She has been a journalist for over 35 years, writing about insurance for consumers for the last decade. Prior to covering insurance, Michelle was a lifestyle reporter at the New York Daily News, a magazine editor covering consumer technology, a foreign correspondent for Time and various newswires and local newspaper reporter.
Lead Editor, Insurance
Fact Checked
Updated: Jan 3, 2024, 7:04am
Editorial Note: We earn a commission from partner links on Forbes Advisor. Commissions do not affect our editors' opinions or evaluations.
Burial insurance is a type of life insurance designed specifically to pay for final expenses. It is sometimes called funeral insurance or final expense insurance. You may be looking at this type of life insurance if you want to provide a relatively small amount of money that your family can use to pay for a funeral and some additional small expenses.
We evaluated insurers and found only two that we would recommend as the best burial life insurance companies.
Read more
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Show Summary
- Best Burial Insurance Companies of 2024
- Comparison of the Best Burial Insurance Companies
- Pros and Cons of Burial Insurance
- Is Burial Insurance Worth It?
- How Much Is Burial Insurance?
- How Much Does an Average Funeral Cost?
- How to Get the Best Burial Insurance
- Types of Burial Insurance
- Methodology
- Best Burial Insurance FAQs
- Next Up In Life Insurance
Best Burial Insurance Companies of 2024
- AARP/New York Life
- State Farm
AARP/New York Life
Compare quotes from participating carriers via Policygenius.com
Guaranteed Acceptance Life Insurance
$5,000/$25,000
50-80 (50-75 in New York)
Editor's Take
AARP scored well in our analysis thanks to its relatively competitive cost for burial insurance and its low level of complaints. AARP’s life insurance program is available to AARP members and is underwritten by New York Life Insurance.
More: AARP Life Insurance Review
Pros & Cons
- Instant quotes available online.
- AARP burial insurance is also available to spouses/partners ages 45-80 of AARP members (spouses ages 50-75 in New York).
- New York Life has earned AM Best’s top financial strength rating.
- You must be an AARP member to buy the life insurance, which will add cost. You can join AARP when you buy its burial insurance, and the other perks of AARP membership can offset the membership fee.
- May not be available in all states
State Farm
Compare quotes from participating carriers via Policygenius.com
Guaranteed Issue Final Expense insurance
$10,000/$15,000
50-80 (50 to 75 in New York)
Editor's Take
State Farm Life earned a high score in our analysis based on its burial insurance costs and low level of complaints against the company about life insurance.
More: State Farm Life Insurance Review
Pros & Cons
- Instant quotes available online.
- Has earned AM Best’s top financial strength rating.
- Small window of coverage amounts ($10,000 to $15,000), although customizable to any amount in between.
- Not available to residents of California, Massachusetts, New York or Rhode Island.
Comparison of the Best Burial Insurance Companies
Company | Company - Logo | Forbes Advisor Rating | Forbes Advisor Rating | Policy name | AM Best financial strength rating | Coverage minimum | Learn More CTA text | Learn more CTA below text | Ages eligible to buy | |
---|---|---|---|---|---|---|---|---|---|---|
AARP/New York Life | 5.0 | Guaranteed Acceptance Life Insurance | A++ (Superior) | $5,000 | Compare Quotes | Compare quotes from participating carriers via Policygenius.com | 50-80 (50-75 in New York) | |||
State Farm | 5.0 | Guaranteed Issue Final Expense Insurance | A++ (Superior) | $10,000 | Compare Quotes | Compare quotes from participating carriers via Policygenius.com | 50-80 (50-75 in New York) |
Pros and Cons of Burial Insurance
If covering your own funeral expenses is the primary reason you’re buying life insurance, burial insurance is an option. But there are some drawbacks if you go this route.
Pros | Cons |
---|---|
Typically does not require a medical exam | Because there is no medical exam, you can’t qualify for a better rate if you are in good health |
You can’t be turned down for most burial insurance policy types, such as guaranteed issue life insurance | Your policy will likely have a “graded death benefit,” which generally pays out only a refund of the premiums and some interest if you die within two years after buying the policy |
Some burial policies are available instantly online | The lack of online quotes from some companies can make it difficult to compare all your options |
Is Burial Insurance Worth It?
A burial insurance policy could be worth it if:
- You want life insurance you can’t be turned down for.
- You don’t want to take a life insurance medical exam.
- You need only a relatively small amount of life insurance.
- You don’t mind that your beneficiaries will receive only a refund of premiums (and some interest) if you die of illness within the first two years after you buy the policy. (The full death benefit is generally paid for accidental deaths, like a car crash.)
The trade-off is that burial insurance is generally a very expensive way to buy life insurance, based on the amount of coverage you get.
How Much Is Burial Insurance?
Average Burial Insurance Cost by Age for $10,000 in Coverage
Buyer | Average monthly cost | |
---|---|---|
Male age 50 | $47 | |
Male age 60 | $63 | |
Male age 70 | $97 | |
Male age 80 | $197 | |
Female age 50 | $34 | |
Female age 60 | $49 | |
Female age 70 | $73 | |
Female age 80 | $158 | |
Source: We averaged the three cheapest burial insurance quotes we found online for a guaranteed issue policy with $10,000 in coverage |
How Much Does an Average Funeral Cost?
The national median funeral cost with a viewing and burial is $7,848, according to the National Funeral Directors Association. That average does not include the cost of a vault, which is typically required by a cemetery. The median cost is $9,420 when a vault is included.
The national median cost for a cremation with a cremation casket is $6,970.
These figures do not include funeral costs such as a monument or marker, obituary or flowers.
Breakdown of National Median Funeral Costs
Type of cost | Description | Median price | ||
---|---|---|---|---|
Casket | Cost for a metal casket, your cost will vary based upon the materials you choose. | $2,500 | ||
Cremation casket | A fully combustible container, this can be a traditional casket or cardboard box but cannot have any metal parts | $1,310 | ||
Cremation fee | If the funeral home does not own a crematory and uses a third party. | $368 | ||
Urn | Container to hold cremated remains. | $295 | ||
Required basic services fee | Covers the funeral home’s time, storage of remains and overhead expenses. | $2,300 | ||
Embalming | Not required by law, but a funeral home may require if you hold a viewing. | $775 | ||
Other preparation of the body | May include cosmetic reconstruction, hair styling and dressing the deceased. | $275 | ||
Use of facilities/staff for funeral ceremony | If you have the ceremony at the funeral home, you can expect to pay this fee. | $515 | ||
Hearse | Transporting the remains from the funeral home to the burial site. | $350 | ||
Service car/van | Transporting the family and guests from the funeral home to the burial site. | $150 | ||
Printed materials | Memorial package and guest book. | $183 | ||
Source: National Funeral Directors Association, 2021 median costs |
How to Get the Best Burial Insurance
When it comes to finding the best burial insurance, you need to consider your estimated final expenses, your budget and any specific policy needs, then choose a reputable insurer that can meet those needs.
Here are a few considerations as you shop for burial insurance.
- Does the insurer offer coverage in the amount you need?
- Does the premium fit your budget, or do you need to adjust your coverage?
- Is a medical exam required?
- Does the insurance company have favorable customer ratings?
- Does the insurance company have high industry ratings, such as from AM Best?
Many major insurers will allow you to get a burial insurance quote online. It’s a good idea tocompare life insurance quotesfrom several insurance companies before making a decision.
Compare Life Insurance Companies
Compare Policies With 8 Leading Insurers
Types of Burial Insurance
Simplified Issue Life Insurance
If you apply for simplified issue life insurance you’ll answer some questions about your health but you won’t be required to take a medical exam. Additional information about you is usually gathered by the insurance company through third-party sources. This might include details about your driving record and prescription drug use.
With simplified issue life insurance, you can usually find out if you’ve been approved within minutes of filing the application.
One advantage of having a simplified issue life insurance policy to pay for your funeral is that it generally costs less than a guaranteed issue life insurance. Simplified issue policies also usually have higher death benefits available than guaranteed issue policies. These types of policies will usually have a graded death benefit, meaning your beneficiaries won’t get a full payout if you pass away from an illness within the first two of years after buying the policy. (The full death benefit is generally paid for accident-related deaths.)
Guaranteed Issue Life Insurance
If you buy a guaranteed issue life insurance policy to pay for your burial, you won’t have to answer any health questions, there’s no medical exam, and you can’t be denied coverage.
While guaranteed issue life insurance is an incredibly easy way to get burial insurance, there are significant downsides:
- It’s a very expensive way to buy life insurance.
- It also usually has low maximum coverage amounts, such as $25,000 or less.
- You typically need to be at least age 50 to buy guaranteed issue life insurance.
- It usually has a graded death benefit.
Pre-Need Insurance
Pre-need insurance is sometimes available from the funeral home where you plan to have your services. You contract with the funeral home for the services you want. The funeral director can sell you a pre-need insurance policy when they are also a licensed life insurance agent. When you pass away, the policy’s pay out goes directly to the funeral home to pay for the arrangements you’ve selected.
Methodology
We chose the best burial insurance companies based on the following measurements.
Cost (50% of score): We analyzed burial insurance costs. Only life insurance companies with online quotes for burial insurance were included in our analysis.
Complaints (50% of score): We factored in complaints about life insurance based on data from the National Association of Insurance Commissioners. Complaint data reflects upheld complaints around the country, and a high complaint level knocked some companies out of our rankings.
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Best Burial Insurance FAQs
What is a death benefit?
A death benefit is the amount of money paid by your life insurance company to your beneficiaries when you die.
What is burial insurance?
Burial insurance is typically a whole life insurance policy with a small death benefit, such as $5,000 to $25,000. This amount is meant to pay for final expenses and funeral costs. Paying for a funeral is the only reason why many older consumers may buy a life insurance policy. But burial insurance can be expensive, and you may have better options.
Burial insurance policies aren’t meant for people raising families and who need the best life insurance to cover bigger obligations, such as a mortgage, kids’ college tuition and income replacement during their prime working years.
How does burial insurance work?
When you apply for burial insurance, you choose the amount of coverage you want and name a life insurance beneficiary (or beneficiaries). Burial and funeral insurance policies generally do not require a life insurance medical exam, and the application may ask only a few health questions—or no questions at all. Rates are based primarily on age and gender.
When you pass away, your beneficiary files a claim with the life insurance company, and usually must provide a certified copy of the death certificate.
What is covered by burial insurance?
Burial insurance will cover any cause of death after the first years of the policy. If you die of an illness (or simply old age) with the first two years of owning a burial policy, your beneficiaries usually get only a refund of the premiums you paid and some interest, like 10%.
This “graded death benefit” system is in place so that people who are terminally ill don’t buy burial life insurance and pass away shortly after, without paying much in premiums.
Also, a death by suicide within the first two years may not be covered.
Does a beneficiary have to use the life insurance payout for a funeral?
Beneficiaries don’t have to use a life insurance payout to pay for your funeral. That’s why it’s vital to choose a life insurance beneficiary you trust who will respect and follow your instructions on how to use the life insurance payout.
What is the difference between burial insurance and life insurance?
Burial insurance, also called final expenses insurance, is one type of life insurance. A burial insurance policy generally has a small death benefit. It could be in the form of guaranteed issue life insurance or simplified issue life insurance. Neither type of policy requires a medical exam. Simplified issue requires that you answer health-related questions and may reject you, while a guaranteed issue policy doesn’t have health questions and doesn’t deny applicants.
These policies are meant as a way to pay for a funeral and final expenses and are typically small whole life insurance policies.
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- Best Life Insurance Companies
- Cheapest Life Insurance Companies
- Best Term Life Insurance
- Best Instant No-Exam Life Insurance
- Average Cost Of Life Insurance
- Compare Life Insurance Quotes
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