Top 10 Things You Need to Know About Burial Life Insurance

Burial life insurance, also known as final expense insurance, is a financial product specifically designed to cover end-of-life costs such as funeral and burial expenses.

This type of insurance can be an integral part of your broader estate planning strategy, ensuring your loved ones are not burdened with unforeseen costs at a difficult time.

Whether you call it burial life insurance or final expense insurance, the primary goal remains the same: to relieve your family of financial stress during an emotionally challenging period.

Guide to Understanding Burial Life Insurance

Quick Review

Burial life insurance, also known as final expense or funeral insurance, is designed to cover end-of-life expenses such as funeral and burial costs. Here are the top 10 things to know:

1. It typically offers smaller coverage amounts compared to traditional life insurance, usually ranging from $5,000 to $25,000.
2. Premiums are generally fixed and can be paid monthly or annually.
3. It is often easier to qualify for, with minimal or no health questions and no medical exams required.
4. Policies are usually whole life, meaning they last for the insured's lifetime as long as premiums are paid.
5. It can provide peace of mind by ensuring that loved ones are not burdened with funeral costs.
6. Beneficiaries can use the payout for any purpose, not just funeral expenses.
7. It may accumulate cash value over time, which can be borrowed against.
8. Some policies offer immediate coverage, while others have a waiting period before full benefits are available.
9. Fixed premiums: The premiums for burial life insurance remain fixed throughout the life of the policy, providing financial security.
10. Guaranteed death benefit: The death benefit is guaranteed, regardless of changes in health or financial circumstances.

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How Burial Life Insurance Works

Understanding burial life insurance is crucial, especially when differentiating it from other forms of life insurance.

Unlike traditional life insurance, which can offer substantial payout amounts, burial life insurance typically provides smaller coverage amounts, ranging from $5,000 to $25,000.

This coverage is designed specifically to cover final expenses. The reduced coverage amounts make it an affordable option for those seeking dedicated coverage for funeral costs without the complexities of larger policies.

Easy to Get Insured

A standout feature of burial life insurance policies is their accessibility.

Most providers offer policies that don't require a medical exam, making them easier to qualify for, especially for older adults or individuals with pre-existing health conditions.

This is a significant advantage over other types of life insurance that often include rigorous medical underwriting.

Furthermore, premiums for burial life insurance are typically fixed and can be paid monthly or annually, providing predictability and ease of budgeting.

Common Final Expenses Covered

Burial life insurance plans cover a range of expenses related to funerals and burials.

Common costs include the price of a casket or urn, burial plot, headstone, and embalming.

Additional expenses often covered are the service charges for a funeral director, transportation and hearse fees, flowers, and printing costs for memory cards or memorial service programs.

By planning for these costs, you ensure that all aspects of a funeral are accounted for without placing the financial burden on your loved ones.

Sample Pricing for Burial Life Insurance

Cost is a crucial consideration when exploring burial life insurance. The premiums can vary based on age, health status, and the amount of coverage desired.

To provide a clearer picture, let's consider three sample rates from Mutual of Omaha for a $10,000 guaranteed issue policy:

• For a 50-year-old male, the premium might be around $35 per month, while a female might pay about $28.
• At age 55, the rates could be approximately $40 for males and $30 for females.
• By age 60, premiums generally rise to about $45 for males and $36 for females. These rates provide a baseline for how costs can escalate with age.

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Factors That Affect Pricing

• Factors that affect the pricing of burial life insurance include age, health condition, coverage amount, gender, and lifestyle habits such as smoking.
• Older applicants typically face higher premiums due to increased risk.
• Health conditions can also lead to increased rates, even for policies requiring no medical exams.
• Additionally, men generally pay higher premiums than women because statistically, they have shorter life expectancies.

Eligibility Requirements to Get Insured

Eligibility for burial life insurance is broad, but it varies by provider.

For instance, Mutual of Omaha offers policies to individuals aged 45 to 85, making it accessible to most seniors.

Other companies may have slightly different age brackets, so it's essential to verify with each provider.

Generally, these policies are attractive to those who might not qualify for traditional life insurance due to age or health.

Benefits of Burial Life Insurance

Burial life insurance provides several benefits.

• Helps alleviate the financial burden on families by covering funeral and burial costs.
• It offers peace of mind, knowing that the policyholder's final expenses are taken care of. 
• Moreover, since beneficiaries can use the benefit as they see fit, any excess funds after covering funeral costs can help with other financial needs.

Top Burial Life Insurance Companies

When exploring burial life insurance options, it's essential to consider different policies from various providers.

Mutual of Omaha, for instance, offers guaranteed issue policies with no medical exam, fixed premiums, and coverage up to $25,000.

Gerber Life provides similar benefits, focusing on adults from 50 to 80 years old.

MetLife offers an age range of 45 to 75 for its guaranteed acceptance policies, providing lifelong coverage as long as premiums are paid.

Mutual of Omaha

Renowned for strong customer service and comprehensive policies. Known for affordability and competitive premiums.

• Up to $25,000 of coverage
• Available in every state and DC
• No physical exam and no health questions asked
• Guaranteed Acceptance ages 45-85 (50-75 in NY)
• 30-day money-back guarantee
• Two-year limited benefit period

Gerber Life Insurance Company

Provides guaranteed life policies up to age 80. A solid choice for those seeking strong brand reputation and reliable policies.

• Exclusively for ages 50 - 80
• Available in all states and DC (excluding Montana)
• You cannot be turned down because of your health
• There are no health questions asked and no physical exams
• Two-year limited benefit period

MetLife

Highly rated for its financial strength and diverse offerings. Provides options tailored specifically for seniors with flexible benefits.

• Rates as low as $10 per month
• Guaranteed Issue for ages 45-75
• Up to $20,000 of coverage available
• No medical examination required
• Two-year limited benefit period
  
  

Applying for Burial Life Insurance Policies

Applying for burial life insurance is a straightforward process. Here are the key steps:

1. Research and select a suitable policy and provider.
2. Request a free quote online or through an agent.
3. Complete the application form, which often asks minimal health questions.
4. Submit your application and await approval, usually no medical exam required.
5. Once approved, pay your initial premium to activate the policy.

Limitations of Burial Life Insurance

Although burial life insurance offers many advantages, it also has limitations and exclusions.

• Common limitations include a graded death benefit period, usually within the first two years, where only partial benefits are paid if the insured dies from non-accidental causes.
• Coverage amounts are generally capped at $25,000, which may not fully cover extravagant funerals.
• Additionally, due to guaranteed acceptance, premiums are often higher compared to traditional life insurance policies.

Burial Life Insurance vs. Term Life Insurance

Comparing burial life insurance with term life insurance reveals distinct differences in product types.

Term life insurance provides coverage for a specific period, usually 10 to 30 years, and benefits are only paid if the insured passes away during the term. It generally offers higher coverage amounts but requires medical underwriting.

In contrast, Burial insurance is permanent, lasts a lifetime, and is more accessible but has lower coverage limits, offering guaranteed approval for people ages 45-85.

Factors to Consider When Choosing an Insurer

When evaluating burial life insurance providers, several factors are crucial:

• The financial stability of the company, often indicated by ratings from agencies like A.M. Best or Moody's.
• Customer service reputation, including responsiveness and support.
• Policy details, such as coverage limits, waiting periods, and premium costs.
• Additional features, like cash value accumulation or policy riders that may be beneficial.

How to Buy a Burial Life Insurance Plan

Understanding how to buy a burial life insurance policy can streamline your decision-making process.

1. First, define your coverage needs, considering average funeral costs and family circumstances.
2. Next, research and compile a list of reputable insurance providers.
3. Obtain quotes and compare rates and policy features.
4. Consult with an insurance agent if needed for clarification. Finally, select the policy best suited to your needs and complete the application process.

Note: These policies usually come with a 10-30 day Free Look period. If you choose to cancel your policy within the free look period and return it to the insurer, you will get a full refund of all premiums paid.

Example of Burial Life insurance Coverage

It turns out, planning ahead really does pay off. Take Tom, a retiree in his early 70s.

He opted for a burial life insurance policy after witnessing the financial strain his family faced during his brother’s funeral.

Since then, he’s felt relieved, knowing his kids won’t bear that burden. Anecdotes like Tom's illustrate the peace of mind and practical benefits burial life insurance provides.

Peace of Mind

Incorporating burial life insurance into broader end-of-life and financial planning can significantly enhance your peace of mind.

By budgeting for funeral expenses upfront, you mitigate the financial impact on your family and join an increasing number of people who recognize life insurance as a strategic tool for legacy planning.

Reports from the Life Insurance Marketing and Research Association (LIMRA) consistently show that more people are prioritizing robust end-of-life plans as part of their financial strategy.

The sentiment of leaving a legacy and not becoming a financial burden resonates strongly with many policyholders. With burial life insurance, you ensure that your end-of-life expenses don’t deplete any inheritance or savings that were intended for loved ones. In this way, it becomes more than just insurance; it’s a lasting gesture of love and care.

Take Action Today

If you find yourself contemplating burial life insurance, take the next step: request a free quote tailored to your personal needs and budget.

Compare options from established providers like Mutual of Omaha, Gerber Life, or MetLife to ensure you secure a policy that suits your aspirations.

Remember, the choice to invest in burial life insurance is more than a purchase — it's a thoughtful plan to safeguard the future of those you cherish.

Burial 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.

• Your life insurance policy comes with a 30 day Risk-Free, Money-Back Guarantee