Do You Need Cremation Life Insurance?
If you are planning ahead for your final expenses you may be considering the purchase of a cremation insurance policy. It’s important to make sure your final wishes are clear, and the funds are available to cover those costs, so your loved ones are not put in a position of financial difficulty upon your passing.
A cremation insurance plan can help make sure your end of life expenses will be provided for, without causing distress to your family, and give you the peace of mind knowing you have planned ahead.
What are Cremation Expenses?
They are costs related to your cremation, such as, your funeral, burial, urn or small casket, funeral or memorial service, flowers, memory cards, and other costs.
How Much Does Life Insurance for Cremation Expenses Cost?
It can be affordable or cost more for some people depending on how old you are when you buy your policy, and how much coverage you purchase.
However, some plans start as low as $8.84 per month.
Do I Need to Take a Medical Exam?
No, generally you are not required to take a physical examination when you apply for life insurance to pay for final expenses. In addition, there are no health questions asked when you get a life insurance plan with guaranteed acceptance.
What Company Offers Life Insurance for Cremation Coverage?
There are several insurance carriers that offer life insurance plans to help you provide for your cremation costs. Some of the leading insurers include Mutual of Omaha and Colonial Penn, among others.
Mutual of Omaha is rated "A+" Superior for financial strength by AM Best Company. The financial rating of your life insurance company is important because you want them to be around when the time comes to pay out the benefits on your life insurance policy.
Mutual of Omaha offers people ages 45 to 85 up to $25,000 of permanent life insurance coverage with no health examination required and no health questions asked.
If you are between 45 to 85 you cannot be turned down for any health reasons.
And, you have a money-back guarantee. They provide a 60-day money-back guarantee if you are not satisfied with your policy.
You can apply forcremation insurance coverage for you and your spouse if you are married.
You can choose coverage from $2,000 up to $25,000 which will provide your family with the money needed to pay for your cremation and final expenses, and anything else they need.
Cremation Insurance Providers
There are several highly-rated insurance carriers that offer burial insurance plans to cover the cost of cremation and related end of life expenses, including:
Mutual of Omaha, AIG, MetLife, Colonial Penn, AARP/NewYork Life, and Gerber Life, among others.
They offer plans with coverage amounts starting at $2,000 of insurance.
These guaranteed-issue final expense policies provide guaranteed approval for anyone who meets the age requirements for acceptance.
Cost of a Cremation
How Much Does a Cremation Cost?
Sample Rates for Cremation:
Direct Cremation– $895.00
Includes transportation from place of death (within 45 miles) to crematory, filing documents, cremation permit, cremation with container, and a temporary container for the cremated remains.
In addition, many people choose to have amemorial service, wake or funeralwhen choosing cremation, rather than a burial. These additional services may cost up to $5,000 or more.
Planning for Cremation
Preparing for one’s final resting place is a difficult decision, whether it’s choosing cremation or deciding to go with a more traditional burial.
Back in the 1980’s only about 15% of all Americans chose cremation, while most people preferred a traditional burial for their end of life wishes.
With rising funeral costs over the last several years, this trend has changed dramatically. For example,in 2011 about 41% of Americans chose cremation instead of a burial.
Today, the average cost of a burial, funeral and related expenses is around $8,755 according to a 2017 survey conducted on behalf of the National Funeral Directors Association.
Regardless, whether you choose Cremation or Burial, a funeral policy is a good thing to have to protect you from the cost related to your final resting place.
Cremation and Related Expenses
Cremation costs an average of $1500-$4000, as compared with a traditional burial, which averaged $8,755 in 2017, according to the National Funeral Directors Association.
Cremation services can be provided either by a funeral home or directly through a crematory, which is usually the less expensive option.
In addition to the cost of the actual cremation, there are some compulsory costs associated with the cremation process.
Compulsory Costs
These include payment for:
In most cases, the paperwork fee includes a brief memorial service for the deceased.
There are also a range of supplemental cremation services that a family may or may not choose to pay for when it comes to cremating their loved one.
Supplemental Cremation Services
For example, some people prefer to:
A choice which costs anywhere from a few hundred dollars to upwards of $5000, depending on the final resting place.
Some families wish to hold an extended memorial for their loved one which can cost anywhere from $1000 to $4000, depending on where the service is held and whether there is a viewing of the body, while others choose to forego a public farewell in favor of a private ceremony (or no ceremony at all), an option which can save the family a bit of money.
Cremation is Cheaper Than a Burial
Even with these optional costs, cremation services are markedly cheaper than a traditional burial because it does not require:
These are costs that are usually required during a traditional burial.
Memorial services for people who are cremated don’t usually require a hearse or limousine, items that are favored by families planning a traditional burial.
Burial Insurance for Cremation
Similar to traditional funeral options, cremation services can be paid for with a burial insurance policy.
If you prefer to be cremated, you should seek out a funeral home that offers this service to determine the exact cost of cremation so that you can buy a burial insurance policy for the appropriate amount.
Cremation Insurance Plans
Even though cremation usually costs less than traditional burials, it can still be an expensive service.
Cremation services cost about $3,000 and if you add the cost of the funeral or memorial service and an urn, columbarium niche, or burial plot, the price could be more than $10,000.
Cremation Related Expenses:
Cremation insurance can help cover those costs so that your grieving family members will not have to worry about their finances after you’re gone.
You don’t want to leave your loved ones with the financial stress of paying for your cremation, while they are grieving your loss.
Although it's hard to think about what will happen after you’ve passed on, it is important to plan ahead so that your family members and friends won’t have to worry about paying for your final expenses during an emotionally difficult time.
The people closest to you will have difficulties adjusting to life without you once you’re gone, but you can make it a little bit easier for them by planning ahead now.
A Cremation insurance policy is an affordable way for you to ensure that your cremation, funeral service, final resting place, and few outstanding debts will be paid without burdening your family and friends with these expenses.
By purchasing cremation insurance to pay for your end of life costs you make sure your loved ones will not be financially burdened by your death.
Your Final Plan
A final plan defines your wishes for final needs and manages final expenses so your family will not be burdened with the preparation and cost. When cremation is chosen for final needs, the final plan may include a simple cremation (cremation without funeral services – also known as direct cremation) or cremation with funeral services.
The overall cost of your final expenses may vary quite a bit based on the additional services to be included with your cremation.
Direct Cremation
Direct cremation is a very affordable cremation, however, coming up with a couple thousand dollars to cover a low-cost cremation is still problematic for some families.
Funeral or Memorial Service
When a Funeral or Memorial Service is included, families need to manage thousands of dollars more in expenses to help provide a meaningful service befitting their faith and preferences, and find a way to manage the cost of all related final expenses.
Life Insurance for Cremation
Cremation insurance is a small-value life insurance policy designed to cover the cost of your cremation, and any funeral or memorial services at the time of death.
Final expense insurance policies may be purchased through a funeral home or crematory, or with a life insurance company.
You purchase an insurance policy in an amount that would cover your cost of cremation and any related final expenses.
You pay a modest monthly amount for your insurance policy.
Upon your death, the insurance policy pays out the death benefit.
Final expense life insurance companies pay the funeral home or crematory the amount owed for the final expenses.
If expenses are less than the amount of insurance you purchase, the balance is paid to your designated beneficiary. If final expenses exceed the amount of your insurance policy, family members must cover any additional costs.
Planning ahead ensures you will have the services that best fit your needs and offer you peace of mind knowing that your final needs are properly managed.
By planning for your cremation ahead of time, you remove all of the emotional and financial burden of planning and payment from your loved ones.
Cremation Life Insurance Quotes
Top Pick – Mutual of Omaha
Mutual of Omaha offers guaranteed acceptance whole life insurance for people age 45 to 85. Choose $2,000 up to $25,000 of coverage. Rates start as low as $8.84 per month. There’s no medical exam and no health questions. You cannot be turned down. You can get a quote and apply online now. START HERE to get a FREE Quote.
Cremation Insurance for Seniors
Disclosure: Compensated Affiliate