When you’re planning for the future and making sure you and your family have enough money, it’s important to think about burial insurance.
This type of insurance helps pay for funerals and other things when someone dies.
However, there are many insurance companies, and it can be challenging to know which one is right for you.
That’s where we can help. This article will discuss burial life insurance and compare companies to help you find the best plan.
Whether you want something inexpensive that allows you to change things or offers good customer service, we’ll help you find it.
Key Takeaways:
- It’s important to check out different burial insurance companies for the right plan.
- Burial life insurance offers coverage for funeral expenses and other end-of-life costs.
- When shopping for burial insurance, consider policy type, coverage amount, cost, and reputation of the company.
- Understanding the basics of burial insurance is crucial before comparing providers.
- You can choose the right plan by analyzing your budget, coverage needs, and any additional benefits or riders offered.
What is Burial Insurance?
Before comparing different companies, let’s ensure we understand what burial insurance is and how it works.
Burial life insurance specifically covers the costs of funerals and burials.
It’s there to ensure your loved ones don’t have to worry about paying for these expenses when you’re gone.
Unlike regular life insurance, burial insurance covers smaller amounts, usually between $5,000 and $25,000. It’s often easier to qualify for, with fewer medical questions or exams.
You can use the money for various purposes when you obtain a burial insurance policy.
Like funeral services, cremation, buying a plot, getting a headstone, and even paying off any debts you might have.
This way, your final wishes can be taken care of, and your family won’t have to stress about money during a tough time.
Types of Burial Insurance Policies
Various burial insurance policies are accessible, such as:
- Pre-need Funeral Insurance
Pre-need insurance allows you to pay for your funeral expenses in advance. It ensures your wishes are followed without burdening your family.
You select services and lock in costs, but the policy can lack flexibility, and if the funeral home changes, it might not be honored.
- Final Expense Insurance
Final expense life insurance, also called burial insurance, helps cover the costs of funerals and burials, as well as any money owed or medical bills left behind when someone dies.
Its goal is to give a large sum of money to the people who will receive it after someone passes away. This helps them handle the money after the person dies.
Final expense insurance offers more flexibility compared to pre-need funeral insurance.
People with this insurance can decide how they want to use it. This means recipients can use the money to pay debts, medical bills, funeral and burial expenses.
- Guaranteed Issue Life Insurance
Guaranteed-issue life insurance provides burial coverage without any medical checkups or health questions. They’ll approve you no matter what shape you’re in.
Anyone can get approved for this insurance, even if they’re unhealthy.
This type of policy is for people who already have health problems or can’t get regular life insurance.
However, one downside is that it might only cover some of your needs and can be expensive.
Furthermore, those with terminal illnesses might face waiting periods before receiving benefits.
- Simplified Issue Life Insurance
Simplified-issue life insurance is like a kind of burial insurance. You’ll need to answer some questions about your health, but you won’t have to undergo a medical exam. It’s for people who are in good health.
The good thing about this type of insurance is that the monthly payments are lower compared to other types where you don’t need a medical exam. Plus, you can get more coverage, and you won’t have to wait as long to use the insurance.
It’s like a win-win situation – you get the coverage you need without the hassle of a big medical exam, and you might even get better benefits!
Eligibility Requirements for Burial Insurance
Compared to traditional life insurance policies, burial insurance has lenient eligibility requirements.
While the specific requirements may vary among providers, most burial insurance plans:
- Do not require a medical exam
- Have simplified underwriting processes
- Rarely exclude applicants due to age or pre-existing health conditions
Burial insurance may be an option for those who are unable to get traditional life insurance due to their age or health.
Comparison of Burial Insurance Providers
Before deciding, compare burial insurance companies’ performance and customer feedback.
It’s important to look at a few options before deciding.
Top Burial Insurance Providers: A Comprehensive Comparison
Mutual of Omaha
Mutual of Omaha provides life insurance for a broad age range. It allows you to secure insurance coverage at a younger age when premiums are lower.
You can start with as little as $2,000 in coverage, which is ideal for those seeking minimal protection.
They strive to process most claims within 24 hours. Getting burial insurance can help your family when they’re dealing with paying for a funeral and other urgent things.
Their website is easy to use and has useful tools like a calculator for calculating final expenses and pages where you can compare different types of insurance.
Mutual of Omaha is known for being good with money and ensuring claims get paid out when they should.
Plus, their universal life policy lets you get money early if you’re sick. It assists with medical bills when needed.
Face Amounts: $2,000 – $40,000 ($20,000 Graded Max)
Types:
- Level
- Graded
Payouts:
- Level – Immediate
- Graded – 2-year policy (Return of Premium plus 10%); Full payout for accidental death.
Pros
One big plus of Mutual of Omaha is that you can get whole life insurance without having to do a medical exam.
It simplifies and broadens access to the insurance application process.
Also, the company gets really good ratings in customer satisfaction surveys by J.D. Power. That means a lot of customers really like them.
If you get approved, you’re covered right away for both natural and accidental death. You don’t have to wait, which can help you feel better right away.
And if you don’t want to undergo a medical exam, you can still get coverage for up to $50,000. They try to ensure that they have options for everyone’s needs.
Most of the time, they will notify you of your approval status within 24 hours. That’s pretty fast!
Cons
Mutual of Omaha requires you to buy insurance through agents, so you can only get it online or from the company.
You must apply through licensed Mutual of Omaha agencies by talking with agents.
But if you apply by mail or on their website, you might have to wait two years before the coverage starts. And you can only get up to $25,000 in coverage.
Why We Chose It
We chose Mutual of Omaha because it offers burial insurance to people as young as 45 years old. It is relatively young compared to other providers.
Additionally, the company offers small policies starting at $2,000 ($5,000 in New York) to provide flexibility. It makes it ideal for those who only need minimal coverage.
Plus, Mutual of Omaha allows policyholders to get up to $25,000 in coverage across all states.
State Farm
State Farm Life Insurance earns a 5 out of 5-star rating for its performance. We consider factors such as customer satisfaction, complaints, and financial strength.
State Farm offers various insurance products, including final expense whole life insurance.
It’s recognized as one of the top choices for burial insurance because people are happy with it, and it’s financially stable.
State Farm received top marks in the 2022 J.D. Power Life Insurance Study for customer satisfaction.
And it has the highest A++ AM Best rating, so you can trust it to pay out claims when needed.
Face Amounts: $10,000 to $15,000 Types:
- Level
- Graded
Payouts:
- Level – Immediate
- Graded – 2-year waiting period (full death benefit is unpaid).
If the insured person dies during this waiting time, the person who gets the money will get some of it back. For example, they might get back the money paid for the insurance, plus some extra money as interest.
- Total payout for accidental death.
Pros
State Farm is a well-known insurance company that’s been around for a long time. People trust them because they’ve got a good reputation and have been in the business for a while.
You can count on them to keep their promises regarding money, which can help you feel more relaxed.
Their customer service is great, and they’re always there to help if you have any questions or worries.
Cons
Even though State Farm is known for being reliable and having lots of money, there are a few things you should think about.
One downside is that there’s not a lot of info out there about their burial insurance plans. It might be tricky to figure out all your options.
It’s a good idea to check if the service is offered where you live because it might not be available everywhere.
Keep in mind that they don’t sell life insurance in Massachusetts.
Finally, if you prefer handling your policy online with an Android phone, there might be some stuff you can’t do.
Why We Chose It
We chose State Farm because it has a strong reputation and financial stability.
Their commitment to keeping their promises to policyholders gives us confidence and peace of mind.
Additionally, their excellent customer service is always there to help with any questions or concerns we might have.
Ethos
Ethos is a great option when you need insurance quickly.
They simplify it with an easy online application process that gives you immediate coverage.
Their guaranteed issue of whole life insurance is a big advantage.
It provides instant approval for coverage from $10,000 to $25,000 for people aged 65 to 85.
This policy doesn’t ask health questions or require medical exams.
Plus, your monthly premiums stay the same for the life of your policy.
Face Amounts: $1,000 up to $30,000 Types: Whole and term life insurance Payouts: Limited payout in the first two years (return of premiums paid to a percentage of the death benefit). It commonly falls within 25% to 100% of the coverage amount.
Pros
Ethos provides some excellent benefits that are worth considering.
Firstly, their burial insurance offers a wide death benefit, ranging from $1,000 to $30,000. It allows you to customize your coverage according to your needs.
For seniors aged 66 to 85, Ethos offers a guaranteed issue policy. This means coverage can be obtained without medical exams.
And if you prefer planning ahead, their online price estimator is simple to use. It gives you a quick estimate of your potential premiums.
Cons
One drawback is that Ethos doesn’t write its policies, so it partners with other insurers to offer coverage.
It can sometimes create a slight gap in the process.
If you want to add rider options to your policy for extra coverage or flexibility, you’ll need to contact an insurance agent.
Our licensed insurance agent is here to help. They’re knowledgeable and trustworthy.
They can walk you through the options available and assist you in customizing your coverage to fit your unique needs.
Why We Chose It
We chose Ethos Life Insurance because it offers several appealing benefits.
Their burial insurance offers many coverage options, letting us customize our policy to suit our needs .
Additionally, for seniors aged 66 to 85, Ethos offers a guaranteed issue policy. It makes it easy to get coverage without having to undergo medical exams.
Furthermore, Ethos provides a straightforward online price estimator, which gives us a quick estimate of potential premiums.
Although Ethos doesn’t write its own policies, its partnership with other insurers ensures we still receive reliable coverage.
With the guidance of their licensed insurance agents, we can navigate through available options. And you can customize your coverage to suit your needs and wants.
Factors to Consider When Choosing Burial Insurance
When picking a burial insurance plan, it’s essential to consider various factors to make the right choice.
Here are some key things to remember:
Your Budget
Before committing to a burial insurance plan, it’s crucial to determine how much you can afford to pay in premiums.
Consider your monthly budget and ensure the premium payments align with your financial capabilities.
Remember, it’s essential to maintain the policy over the long term to ensure coverage when it’s needed most.
Coverage Needs
Assess your coverage needs by considering the money required to cover your final expenses.
Final expenses include funeral costs, outstanding medical bills, and other debts.
Ensure that your burial insurance plan offers enough coverage to meet these needs.
Additionally, if you have any specific wishes or preferences for your funeral arrangements, factor those into your coverage requirements as well.
Medical Underwriting
Some burial insurance plans require medical underwriting. You may need to provide your medical history or undergo a basic medical examination.
Suppose you have pre-existing health conditions or are concerned about being declined coverage. It’s crucial to explore burial insurance options that have lenient underwriting guidelines.
It will increase the chances of getting accepted for coverage.
Additional Benefits or Riders
Consider if the burial insurance plan offers additional benefits or riders that align with your needs.
For instance, some plans offer a living benefits rider. It lets you use part of the death benefit if you’re ill.
Others may offer accidental death or dismemberment coverage. Assess these additional features and determine if they add value to your chosen plan.
Thinking about these things helps you choose the right burial insurance plan for you and your loved ones.
Remember, it’s essential to research different providers and policies to find what’s best for you.
Final Thought
After comparing different burial insurance options, you’re ready to pick the best plan for you or your family. Think about important factors before making your decision.
Make sure to research each provider and review their policies before deciding.
Picking the right burial insurance plan helps you feel calm, knowing your end-of-life costs will be taken care of.
Whether you’re after a big plan that covers everything or something cheaper, make sure it’s what you need.
And remember, burial insurance doesn’t just protect your finances. It also supports your loved ones emotionally during a tough time.
By getting a good plan, you ease the burden on your family so they can focus on remembering you.
FAQs
What is burial insurance?
Burial insurance is also known as final expense life insurance. It is a life insurance policy covering funeral and burial expenses.
It helps out your family so they don’t have to stress about paying for your final stuff.
What is the best company to get burial insurance?
- Best for younger people: Mutual of Omaha.
- Best for immediate coverage: Ethos Life Insurance.
- Best for customer satisfaction: State Farm.
How does burial insurance work?
Burial insurance works like this: You pay money every month or year to the insurance company. Then, when you pass away, they give a big chunk of money to the people you chose to get it.
This money can be used to cover funeral and burial costs, as well as any outstanding debts or final expenses.
What are the disadvantages of funeral insurance?
Burial insurance can be a bit like a gamble. The set amount paid out when the person passes away stays the same with additional payments.
So, if the person lives longer than expected, or if the insurance is taken out early in their life. They might end up paying more into the policy than what it pays out.
What is the cheapest burial plan?
Direct cremation is one of the cheapest ways to lay your loved one to rest. It also gives families more freedom to create personalized memorials.
Additional Resources
1. Final Expense Insurance Guide
2. Best Burial and Final Expense Insurance
3. Burial Insurance for Seniors
