Whether you are looking for yourself, a spouse, or a parent, you probably have questions about burial insurance for seniors, which is why we created this guide to help you.

We will cover what burial insurance is, what to look for in the best policies, and how to find the most affordable final expense insurance plan.

In a hurry and want the best rates? Use this link for free instant Burial Insurance Quotes.

What is Burial Insurance for Seniors?

Burial insurance is a Final Expense plan that will cover the cost of providing a proper burial ceremony when you pass away and removes the burden from your loved ones. If you plan to have a traditional funeral with a casket or a cremation service, these burial plans can be a good fit.

The main thing is the Final Expense insurance policies pay cash to your family during a difficult time, so they can focus on your memories instead of the money needed to bury you.

Burial insurance for seniors goes by different names. Sometimes it’s called Final Expense Insurance, Burial Life Insurance, Funeral Insurance, or Preneed Insurance, but it’s always life insurance.

Which makes sense because if you think about it, when is it used? When your life ends. However, it needs to be a specific type of life insurance, Whole Life Insurance.

Why whole life insurance?

It’s guaranteed to last as long as you do because whole life is permanent life insurance. Other types of life insurance, for example, term life insurance, last for a certain number of years and then stop. It could expire before you do.

Know the type of coverage you are thinking about getting. Many plans advertised on TV as burial insurance for the elderly are from familiar companies but are actually “term” insurance and expire at 75 or 80. If you die at age 81, you are out of luck. Only get one of these plans if you know when you will die.

Not All Burial Insurance Plans Are Equal.

Best Burial Plans Have:

• Lifetime Rate Lock
• Death Benefit Lock
• Policy Lasts to Age 100+
• Excellent Financial Strength

Burial Plans To Avoid:

• Increasing Premiums
• Decreasing Death Benefit
• Policy Expires Age 75 or 80
• Term Life Insurance

IMPORTANT: Know when the FULL Death Benefit will be available. Many plans have a 2 or 3 year waiting period.

How Does a Burial Life Insurance Work?

In simple terms, you find the plan that meets your need, apply, pay for it, and then when the day comes, your beneficiaries will receive the money to take care of your end-of-life expenses.

Applying for a burial insurance policy is much easier than it was some years ago (we have been helping folks get life insurance coverage since 2001); in the past, you would have to complete a medical exam when applying for a life insurance policy. There is no medical exam with these final expense life insurance plans and typically only a few yes or no health questions.

You pay for the final expense life insurance policy each month, so it is not a burden for you, and then your family receives a lump sum, so the funeral costs are not a burden to them.

Most burial insurance policies are immediate full coverage. Even if you only make one month’s premium payment and die the next month, the final expense insurance company is on the hook for the full death benefit.

If you do not have someone to leave the funds to, you can even have the money paid directly to the funeral home to pay for funeral costs.

(It’s important to note the “2-year contestability clause” for life insurance policies applies to a final expense policy. Burial insurance companies could deny a death claim if you were not 100% truthful on the health questionnaire. The key is, to be honest with all the answers to avoid a rejected claim.)

Types of Death Benefits for Burial Insurance​

• Level Death Benefit
• Modified Death Benefit
• Graded Death Benefit

Level Death Benefit – this plan offers a 100% (full payout) death benefit on day one of the policy. There is No Waiting Period with a Level Death Benefit.

Modified Death Benefit – this plan has a limited death benefit in the first and second years. Typically 30% death benefit in the first year, and 70% death benefit in the second year. Then after the second year, a 100% death benefit.

Graded Death Benefit – this plan pays the full death benefit after two years. If the insured dies in the first two years, the beneficiary receives a return of all premiums paid plus 10% (some companies add 5% or 7%).

Guaranteed Issue Whole Life Insurance

Guaranteed Issue = No Health Questions

Guaranteed issue whole life insurance means you cannot be turned down for health reasons. You are guaranteed coverage if you are a legal resident and can make the premium payments.

It is important to note that guaranteed issue whole life insurance is issued as a Graded Death Benefit. And if you think about this, it makes sense. The company is taking on the risk, which could include people with terminal conditions. Therefore there is a graded period.

How to Buy Burial Insurance for Seniors

• Determine How Much is Needed
• Choose the Right Company based on Health
• Apply and Qualify for the Plan
• Pay the First Month of Premium

Choose the right company, qualify for coverage, and pay the first month’s premium. Complete these simple steps, and the burial insurance plan is in force

The insurance company will pay your beneficiary the death benefit typically within 48 hours when you pass away. Also, note that this death benefit is tax-free to the beneficiary.

Who Needs Burial Life Insurance?

Do you need burial insurance coverage for your final expenses? Burial life insurance for seniors is designed to pay out quickly to your beneficiary. Typically within 48 hours after the company receives the Death Certificate.

The “death benefit” is paid tax-free and is in the form of a certified check, so funds are available right away. There is no probate because the beneficiaries are listed on the policy.

You may be in a situation where you have limited resources, or your assets are not liquid and want to have the cash immediately available to handle the funeral arrangements.

When someone passes, it’s a difficult time for loved ones, and the last thing you want is to add to the stress because money is not available.

Estimated Burial Costs

How much coverage should you get?

If you have ever had a loved one pass away, you probably already know the costs of a funeral.

According to the National Funeral Directors Association, the average cost nationwide (2017) for burial with viewing is $7360 while for Cremation is $6260.

Burial insurance for seniors covers these costs because you transferred the risk to the insurance company. Of course, these costs can vary depending on where you live and how expensive a casket you choose.

In addition to the basic burial costs, you can also add to cover any final expense needs like unpaid debt.

The average policy size for most people is $10,000 to $15,000.

Source: www.nfda.org/news/statistics

Health Requirements for Burial Insurance

The good news is that all the companies we work with have “simplified issued” underwriting.

Which means:

• No Medical Exams
• No Blood Work
• No Urine Samples
• No One Visiting Your Home
• Instant Approvals

However, there are still health questions to answer and a review of your pharmacy record and life insurance history (MIB).

This means not all people will qualify for every burial life insurance plan.

The good news is we do have final expense plans for all health conditions. This is where we use Guaranteed Issue Whole Life Insurance.

Find the Right Company to Pay Funeral Costs

Using a service like iSeniorBenefits.org allows you to compare the different funeral final expense plans available in your state. You can see the rates available, the strength of the company, and which company you might be best suited for based on your health situation.

The majority of our clients are in retirement and on a fixed income. Getting the right company means having lower payments, which leaves more money for other things like grandchildren.

See the chart below to help identify the best company to apply to.

Burial Insurance for Seniors – The Best Companies

These are some of the best burial insurance companies we use for our clients to take care of their final expenses including burial costs. Many have instant decisions and can be issued the same day as applying.

Also, remember that these policies are not limited to being used for funeral costs. The death benefit is tax-free, so the beneficiaries can use the money as they choose. We find many people want to leave something extra for their loved ones.

All of these companies have a good track record with strong financial strength. They also have excellent customer service and quickly pay-out claims.

Consider your health situation and note which companies are better suited for you. Look for the “Underwriting Niches” and note which companies have favorable underwriting for your health conditions.

If you are at higher risk because of health, then look at these three companies that have no health questions. These groups offer “Guaranteed Issue Whole Life.” They will insure you regardless of your health condition. Keep in mind the Death Benefit is Graded.

For help from an experienced field underwriter, who can guide you to the best plan, answer any questions and help you apply for coverage simply use the contact form.

(Not all companies are listed here, call for the most current coverage available.)

Mutual of Omaha

Mutual of Omaha burial plans should be a top choice for most people in good health who want lower rates.

Established: 1909

A.M. Best Rating: A+ / Superior

Issue ages: 45 – 80

Coverage: $2,000 – $40,000

Underwriting: Moderate / General Good Health

Approval: Instant Decision

Rates: Lower

Included Riders: Accelerated Death Benefit

Death Benefit: Level, Graded

Advantages: Instant Approval, Coverage up to $40,000, Superior Financial Strength, Lower Rates, Friendly Customer Support, Fast Benefit Payouts.

Underwriting Niches: Stricter Underwriting Requires Good General Health.

Royal Neighbors of America

Royal Neighbors of America was founded by Nine Women 120 years ago. They are one of the first companies to insure Women and Children.

Established: 1895

A.M. Best Rating: A / Excellent

Issue ages: 50 – 80

Coverage: $7,000 – $30,000

Underwriting: Liberal / Higher Risk

Approval: Instant Decision

Rates: Moderate

Included Riders: Accelerated Death Benefit

Death Benefit: Level, Modified

Advantages: Liberal Underwriting, Instant Approval, Coverage up to $30,000, Excellent Financial Strength, Great Rates, and Friendly Customer Support. Free Members Discount Program.

Underwriting Niches: Favorable for many health issues, including Mental Conditions, Tumors, Metastatic Cancer, ADLs, TIAs, Diabetic Neuropathy, Blood Clots, AFib, Cystic Fibrosis, and more.

Foresters Financial

Foresters Financial. In 1874, the Independent Order of Foresters (IOF) was founded as a fraternal benefit society.

Established: 1874

A.M. Best Rating: A / Excellent

Issue ages: 50 – 85

Coverage: $5,000 – $35,000

Underwriting: Liberal

Approval: Instant Decision

Rates: Lower

Included Riders: Accelerated Death Benefit

Death Benefit: Level Preferred and Standard, Graded

Advantages: Instant Approval, Coverage up to $35,000, Excellent Financial Strength, Lower Rates, Friendly Customer Support, and Fast Benefit Payouts. Complimentary Member Benefits Programs.

Underwriting Niches: More liberal underwriting. Foresters offers two Level coverages including Simplified Issue immediate coverage for COPD.

American-Amicable

American-Amicable was founded in Waco, Texas in 1910 and offers competitive rates and underwriting. They offer coverage for all ages up to 85.

Established: 1910

A.M. Best Rating: A / Excellent

Issue ages: 0 – 85

Coverage: $2,500 – $35,000

Underwriting: Liberal

Approval: Instant Decision

Rates: Moderate / Lower Smoker

Included Riders: Accelerated Death Benefit

Death Benefit: Level, Graded, ROP

Advantages: Instant Approval, Coverage up to $35,000, Excellent Financial Strength, Friendly Customer Support, and Fast Benefit Payouts. Competetive Smoker Rates.

Underwriting Niches: High approval rate. Liberal Underwriting. Offers day one coverage for many health conditions.

Sentinel Security

Sentinel Security Life should be a top choice for people in reasonably good health that want lower rates.

Established: 1948

A.M. Best Rating: B++ / Good

Issue ages: 0 – 85

Coverage: $1,000 – $35,000

Underwriting: Moderate

Approval: Instant Decision

Rates: Lower

Riders Available: Accidental Death

Death Benefit: Level, Modified, Graded

Advantages: Often Lowest Rates, Instant Approval, Coverage ages 0 – 80, Single and 10-Pay Options. Coverage for Younger Ages. Friendly Customer Support and Fast Benefit Payouts.

Underwriting Niches: Moderate Underwriting | Favorable for Diabetics.

First Trinity Financial

First Trinity Financial depending on the State, operates as Family Benefit Life or Trinity Life Insurance.

Established: FBLIC 1964, TLIC 1997

A.M. Best Rating: None

BBB Rating: A+

Issue ages: 50 – 85

Coverage: $2,500 – $25,000

Underwriting: Liberal

Approval: Instant Decision

Rates: Lower

Included Riders: Accelerated Death Benefit

Death Benefit: Level, Graded

Advantages: Instant Approval, Coverage up to $25,000. Liberal underwriting. Friendly Customer Support, Fast Benefit Payouts. Some of the lowest rates but Not available in all states.

Underwriting Niches: Liberal. FBLIC and TLIC offer immediate coverage for many health conditions.

Aetna CVS Health

Aetna / CVS Health – Aetna has roots going back to 1850 and was acquired by CVS Health in 2018.

Established: Aetna 1853, CVS Health 1963

A.M. Best Rating: A / Excellent

Issue ages: 40 – 89

Coverage: $2,000 – $50,000

Underwriting: Liberal

Approval: Instant Decision

Rates: Lower

Included Riders: Accelerated Death Benefit

Death Benefit: Level, Graded

Advantages: Simple application process. Instant Approval, Coverage up to $40,000, Excellent Financial Strength, Lower Rates, Friendly Customer Support, and Fast Benefit Payouts.

Underwriting Niches: Liberal. Preferred and Standard Level Death Benefit. COPD, AFIB, and other health conditions can qualify for immediate coverage.

Prosperity Life

Prosperity Life Group has subsidiaries of the company dating back to 1939. S.USA Life Insurance Company was founded in 1995.

Established: 1995

A.M. Best Rating: A- / Excellent

Issue ages: 50 – 80

Coverage: $1,500 – $35,000

Underwriting: Moderate

Approval: Instant Decision

Rates: Lower

Included Riders: Accelerated Death Benefit

Death Benefit: Level, Modified, Graded

Advantages: Instant Approval, Coverage up to $35,000, Excellent Financial Strength, Good Rates, Friendly Customer Support, and Fast Benefit Payouts. Accepts Direct Express payment.

Underwriting Niches: Favorable for AFib, Diabetics, Multiple Sclerosis. It also treats Cigar and Pipe users as Non-Tobacco.

Guarantee Trust

Guarantee Trust Life established in 1936 is a 3rd Generation Family Run Mutual Insurance company.

Established: 1936

A.M. Best Rating: A- / Excellent

Issue ages: 50 – 90

Coverage: $2,500 – $25,000

Underwriting: Only 5 Questions

Approval: Instant Decision

Rates: Moderate

Included Riders: Accelerated Death Benefit

Death Benefit: Modified Graded

Advantages: Instant Approval, Easy Application to Age 90, Coverage up to $25,000, Excellent Financial Strength.

Underwriting Niches: Very Liberal. Only 5 health questions. Covers many health conditions. No MIB.

AIG

AIG (American General Life Insurance) is the most popular choice for Guaranteed Issue Whole Life because of the lower rates and strength of the company.

Established: 1919

A.M. Best Rating: A / Excellent

Issue ages: 50 – 80

Coverage: $5,000 – $25,000

Underwriting: None – Guaranteed Issue

Approval: Instant Decision

Rates: Moderate

Included Riders: Chronic & Terminal Illness

Death Benefit: Graded

Advantages: No Health Questions, Instant Approval, Coverage up to $25,000, Excellent Financial Strength, Friendly Customer Support, and Fast Benefit Payouts.

Underwriting Niches: Guaranteed Issue for Any Health Condition. No Medical Underwriting. Permanent Legal Residents accepted.

Is Final Expense Life Insurance Right for You?

A funeral insurance plan is not necessary for everyone. Some people have plenty of money for their families to pay for the funeral costs.

A burial insurance policy, also known as final expanse life insurance, is not restricted to paying a funeral home at your death. It can be but is not limited to.

Final expense insurance for seniors is, at the core, a life insurance policy. The money can be used for many things beyond funeral expenses.

An example is a Grandmother who wants to leave money to each of their Grandchildren. Or the father who does not wish to leave unpaid medical bills behind for his daughters.

The money is left to the beneficiaries that you choose. This is paid out Tax-Free to them, and they can use the money as they deem fit. Also, you have the flexibility to change a beneficiary anytime you choose.

If the final expense plan will benefit others and you can afford it in your budget, then it might be for you.

To apply for any of these companies use the contact form.