Peak Burial Insurance

Peak Burial Insurance Logo

How Much Does Burial & Final Insurance Cost?

Discover the expenses for Burial & Final Insurance Cost to prepare for the future. Get clarity on coverage options and costs.

burial and final insurance - insurance policy

In this article, we will explore the expenses associated with burial and final insurance. 

Discover the various costs and coverage options available to help you prepare for the future.

Key Takeaways

  • Burial insurance and final expense insurance cover funeral and burial costs.
  • The cost of burial insurance depends on factors such as age, health, and coverage amount.
  • Calculating your burial insurance needs involves considering your financial situation and funeral preferences.
  • Shopping around can help you find competitive burial insurance policies.
  • There are alternatives to burial insurance, including other types of final expense coverage.
  • Tips to lower your burial insurance costs.

What is Burial Insurance?

Burial insurance pays for final expenses and is a type of life insurance designed for this purpose.

It provides a smaller death benefit compared to traditional life insurance policies. The coverage amount for burial insurance ranges from $5,000 to $25,000. 

Burial insurance ensures beneficiaries have enough money to pay for funeral costs.

It includes caskets, cemetery plots, funeral services, and other end-of-life expenses.

Coverage Options for Burial Insurance

Burial insurance offers different coverage choices to make sure your family is secure.

These policies provide a way to cover the expenses for funerals and burials. It will relieve your family from the financial burden during this time.

Here are the different coverage options for burial insurance:

  1. Immediate Coverage: This option provides coverage from day one. It allows your beneficiaries to receive the full benefit amount regardless of the cause of death.
  1. Graded Coverage: With graded coverage, the benefit amount gradually increases over time. In the beginning, there may be a waiting period before the full benefit is available. 
  2. This option is suitable for applicants with pre-existing conditions.
  1. Simplified Issue Coverage: Simplified issue burial insurance does not need a medical exam. 

Instead, applicants answer a few health-related questions to determine eligibility.

  1. Guaranteed Issue Coverage: It is available to anyone, regardless of their health condition. 

You don’t need to answer health questions or take medical exams, so it’s perfect for people with serious health problems.

Looking into these choices and knowing their advantages will assist you in picking the right burial insurance.

Exploring these options and understanding their benefits will help you make an informed decision when selecting burial insurance.

Having burial insurance coverage can provide peace of mind, knowing that your loved ones will be financially protected in your absence.

Average Monthly Cost Of Burial Insurance

The average burial insurance cost can vary based on several factors, including age, health, and the chosen policy. 

For example, younger people may pay less for burial insurance than older applicants. Then, those with pre-existing medical conditions may pay more.

According to Choice Mutual, the burial insurance coverage is approximately $50-$100 per month, and the most common coverage amount is $10,000.

Age & Gender$5,000$10,000$25,000
Female age 40$12$21$47
Female age 45$13$23$52
Female age 50$14$24$55
Female age 55$15$28$64
Female age 60$18$33$76
Female age 65$22$41$97
Female age 70$28$53$127
Female age 75$37$71$172
Female age 80$50$98$241
Female age 85$70$136$335
Female age 89$131$260$651
Male age 40$14$25$57
Male age 45$15$27$63
Male age 50$17$31$71
Male age 55$20$36$84
Male age 60$23$43$103
Male age 65$29$54$130
Male age 70$37$70$169
Male age 75$50$97$238
Male age 80$69$135$332
Male age 85$91$178$440
Male age 89$180$357$888

Factors That Affect Final Expense Insurance Cost

The cost of final expense insurance depends on various factors. Note that your premium won’t be the same as someone else’s unless your circumstances are very similar.

Knowing these factors can guide your decision-making process when choosing a policy. 

Let’s explore the main factors that affect burial final insurance cost:

  1. Gender

Insurance companies often consider gender when calculating premiums for final expense insurance policies. 

It is because statistical data may show differences in life expectancy between males and females. It will influence the risk assessment process.

  1. Age

Your age at the time of purchasing burial insurance plays a significant role in determining the cost. 

For example, a life insurance company may have a unique price for age 51, age 52, then age 53, and so forth.

Generally, the younger you are when you get coverage, the lower your premiums will be. It is because we see young individuals as having a lower risk of health issues or death.

  1. Type of Policy

There are two types of policies: term life insurance and whole life insurance. It’s important to note that term life policies will generally cost less than whole life insurance. 

Term-life policies expire around age 80. Whole-life policies provide coverage for the insured’s entire life. 

The longevity of coverage and the associated risks are key factors influencing the cost discrepancy between these two types of policies.

Tip: Consider your long-term needs and your family’s requirements when choosing between term life and whole life insurance. Seek guidance from a financial expert or insurance agent to ensure you make the best decision for your financial goals.

When it comes to how much final expense insurance costs, the type of policy you pick matters a lot. There are two types: guaranteed acceptance and simplified issues. 

Guaranteed acceptance plans have no health questions but have a two-year waiting period. 

Simplified issue plans ask about your health but might be cheaper and offer immediate coverage.

If you go for a guaranteed acceptance plan, you’ll definitely get approved, but there’s a two-year waiting period. 

If you pass away during this time, your loved ones will only receive a refund of the premiums you’ve paid, plus interest, which is usually around 10%.

On the other hand, simplified issue plans ask about your health but don’t require a medical exam. 

Depending on your health, you might get full coverage, partial coverage, or have to wait before coverage kicks in.

  1. Health

Your health condition and medical history also affect how much you’ll pay for burial insurance. 

Insurance companies look at these factors to figure out your risk and potential medical costs. 

If you want a policy without a waiting period, you’ll need to answer some health questions. Depending on your health issues, the cost might go up a bit. 

But how much it goes up will depend on the insurance company and the specific health issues you have.

When considering final expense insurance with no waiting period, your health status plays a crucial role. 

Most insurance companies categorize their products into one to three health classifications, each with its own pricing structure.

  1. “Level” or “Preferred” Rating

Plans with these designations typically offer the lowest cost and immediate coverage. 

In general, applicants need to be in moderate to good health to qualify for these ratings.

  1. “Graded” or “Standard” Rating

These terms usually represent a company’s middle-tier rating. Applicants may need to answer “yes” to at least one health question on the application. 

Graded plans usually cost more than “level” or “preferred” ratings and may offer partial coverage during the initial two years.

  1. “Modified” or “Basic” Rating

These terms always denote the most expensive health rating. Applicants with severe health issues may qualify for these plans.

In which comes a two-year waiting period and higher premiums.

Coverage Limits Based on Health

Your health status also determines the coverage amounts available to you. 

For example, Mutual of Omaha offers different coverage limits based on health ratings for their Living Promise final expense policy:

  • Level: $2,000 – $50,000
  • Graded: $2,000 – $20,000

Similar rules regarding coverage limits based on health ratings apply across most burial insurance carriers.

  1. Coverage Amount

The amount of coverage you choose for your burial insurance can affect the cost of your policy. 

The higher the coverage amount, the higher the premiums will be. 

Did You Know? According to the National Funeral Directors Association (NFDA), the average cost of a traditional funeral with a viewing in the United States is $7,848.

The final expense insurance premium depends on factors like gender, age, tobacco use, health, and coverage amount.

Calculation of Premium

Your premium per $1,000 in coverage is determined based on these factors. Then multiplied by the desired death benefit amount to calculate the final cost.

For instance, if your cost per $1,000 is $4.43 per month and you seek $15,000 in coverage, your monthly premium would be $66.45 (calculated as $4.43 multiplied by 15).

Proportional Pricing

The cost of coverage is proportional to the amount of coverage you choose. 

For example, a $25,000 whole life burial policy will cost approximately five times more than a $5,000 policy.

In short, increasing the coverage amount will result in higher premiums. 

When choosing how much coverage to get for your policy, it’s important to think about your needs and budget.

  1. Usage of Tobacco

Tobacco usage is a significant factor influencing the cost of final expense insurance.

Impact on Premiums

We know that smoking cigarettes shortens how long you’ll live. It will result in higher premiums for smokers across life insurance products.

Non-Tobacco Rates

Some insurance companies offer non-tobacco rates for applicants who use alternative forms of tobacco, such as chewing tobacco, smoking pipes, e-cigarettes, or cigars. 

However, it’s important to note that these rates may still be higher than those offered to non-tobacco users.

Importance of Disclosing Tobacco Use

It’s crucial to disclose any tobacco usage accurately when applying for final expense insurance. 

Failure to do so could result in coverage issues or claim denials in the future.

  1. State of Residence

Gender-based pricing differences in life insurance are rooted in historical data showing that, on average, women live longer than men globally.

The state you live in determines which insurance companies are available to you. 

Providers select the states where they offer their products. It can affect the competition and pricing in your area.

The Consumer Federation of America reports that a new law in Montana, signed by Governor Greg Gianforte.

It permits insurance companies to discriminate based on a person’s sex or marital status. This change will result in higher auto insurance premiums for women, widows, and unmarried drivers. 

Montana previously prohibited sex-based discrimination in insurance pricing, but this law represents a significant step backward.

It’s worth noting that in states where sex-based pricing is allowed, women generally pay more for auto insurance than men, particularly women aged 35 and older. 

  1. Occupation

Occupations with a perceived higher risk may influence your premium.

Working in a high-risk occupation like construction may apply a higher premium on you. This compares to someone who works in an office.

  1. Death Benefit

The factors affecting cost will decide how much you pay for each $1,000 of coverage in final expense insurance. 

Then, you multiply that by how much coverage you want to figure out the total cost.

For example, let’s say it’s $4.43 per month for each $1,000 of coverage. If you want $15,000 of coverage, it would be $66.45 per month (4.43 x 15). 

It’s all in proportion too. A $25,000 whole life burial policy costs about five times as much as a $5,000 policy. The main thing to remember is that if you buy more coverage, it costs more.

  1. Hobbies and Activities

Engaging in high-risk activities or hobbies may lead to higher premiums. Examples of this are skydiving or scuba diving.

Insurance companies may see these activities as a high risk of death or injury. It can lead to higher premiums.

  1.  Payment Frequency

Paying premiums annually may be cheaper than paying monthly or quarterly. 

Insurance companies may offer discounts for paying premiums annually. So, it’s worth considering if you can afford to pay the premium upfront. 

It can save you money in the long run and ensure your coverage remains in place without the hassle of frequent payments.

  1. Rider Options

Adding optional riders can increase the cost of coverage. 

These riders, like accelerated death benefit riders, can provide additional benefits. 

For example, they may offer extra financial support in case of accidental death or the ability to access a portion of the death benefit if diagnosed with a terminal illness.

When choosing riders for your final expense insurance policy, review the terms and conditions associated with each option. 

Some riders may offer valuable protections that are worth the extra expense, while others may not be necessary.  

How to Calculate Burial Insurance Needs

Figuring out your burial insurance needs is vital to ensure ample coverage for your final expenses. 

By evaluating various factors, you can decide on the ideal amount of burial insurance. An amount shields your loved ones from the financial strain of funeral and burial expenses.

Burial and Final Insurance Cost - calculating Burial Insurance Needs

Factors to Consider When Calculating Burial Insurance Needs

Determining the appropriate amount of coverage requires careful consideration of several factors. Let’s explore the key factors to consider when calculating burial insurance needs.

  • Funeral Costs: Estimate ceremony, casket, plot, headstone, and any extras.
  • Debts: Account for mortgages, credit card balances, and medical bills.
  • Legacy Planning: Set aside for family or charitable donations.
  • Existing Coverage: Subtract life insurance or savings from total needs.

According to the National Funeral Directors Association (NFDA), ordinary funeral expenses may include:

  • Metal casket: $2,500
  • Funeral home services: $2,459
  • Cemetery plot: $3,581
  • Vault: $1,695
  • Memorial services: $550
  • Viewing: $475
  • Body transportation: $395
  • Embalming: $845
  • Grave markers or headstones: $1,000
  • Cremation fee: $400
  • Opening and closing of the grave: $1,000
  • Urn: $295
  • Flowers: $100

Additionally, there may be other end-of-life expenses to pay for outside of the funeral costs, such as:

  • Mortgages
  • Credit card debt
  • Medical bills
  • Other outstanding debts
  • Attorney fees
  • Automobile loans
  • Other unsecured debt

Consider these when choosing coverage. The average funeral costs around $10,000, so $5,000-$20,000 coverage should be sufficient.

Use a funeral cost calculator for accurate estimates.

Example Calculation:

Let’s consider a hypothetical scenario to illustrate the calculation of burial insurance needs:

ExpenseEstimated Cost
Funeral Ceremony and Services$8,000
Casket or Urn$3,000
Burial Plot$3,000
Outstanding Debts$3,000
Financial Legacy$8,000
Existing Life Insurance-$7,000
Total Coverage Needed$20,000

In this example, the applicant would need a burial insurance policy with a coverage amount of $20,000. 

It will cover all expenses and achieve their desired financial legacy.

By taking the time to calculate your burial insurance needs, you can make informed decisions about the coverage amount.

Finding the Best Price for Your Burial Insurance with Company

Most insurance companies need you to speak with an agent to buy burial insurance online. 

They sell guaranteed acceptance plans with a two-year waiting period.

Like our company, licensed insurance agents offer plans with no waiting period. We compare quotes to find you the best price.

We specialize in burial insurance and can assist you, regardless of your age. Our expertise helps you navigate plan options and find the right coverage.

When shopping for burial insurance, research reputable providers and get quotes.  

Compare policies carefully to ensure you get the coverage you need at the right price.

Consider consulting with an insurance agent. They can offer personalized guidance in choosing the best burial insurance policy for your needs.

Tips for Lowering Burial Insurance Costs

If you’re looking to lower your burial insurance costs and reduce your final expense insurance premiums, there are several strategies you can consider. 

Implementing these tips, you can potentially save money while still ensuring adequate coverage for your loved ones.

Burial & Final Insurance cost - lowering Burial Insurance cost

1. Compare Quotes from Multiple Insurers

Take the time to request quotes from multiple burial insurance providers. 

Comparing quotes will allow you to see which company offers the most competitive rates for the coverage you need.

2. Maintain a Healthy Lifestyle

Leading a healthy lifestyle can have a positive impact on your burial insurance costs. 

Insurers often take into account factors such as your age, weight, and overall health when determining the premiums. 

Prioritizing your health and making healthy choices, you may be able to secure lower insurance rates.

3. Opt for a Smaller Coverage Amount

Consider opting for a burial insurance policy with a smaller coverage amount. 

While it’s important to ensure adequate coverage, choosing a smaller policy can help lower your premiums. 

Check your needs and select a coverage amount that balances affordability and enough protection.

4. Pay Annually Instead of Monthly

Many burial insurance providers offer discounts to policyholders who pay their premiums annually instead of monthly. 

By opting for an annual payment, you can potentially save on your overall insurance costs.

5. Choose the Right Policy Type

There are different types of burial insurance policies available, such as level benefit or graded benefit policies. 

Carefully evaluate the features and benefits of each policy type to determine which one aligns best with your needs and budget. 

Choosing the right policy can help you save money in the long run.

6. Evaluate Policy Riders

Policy riders can add extra coverage options to your burial insurance policy, but they come at an extra cost. 

Evaluate the riders available and determine if you truly need them. Removing unnecessary riders can help lower your insurance premiums.

7. Work with an Independent Insurance Agent

Consider working with an independent insurance agent who can help you navigate the burial insurance landscape. 

Our agents have access to multiple insurers and can provide personalized advice to help you find lower-cost options that meet your unique needs.

8. Take Advantage of Discounts

Ask burial insurance providers if they offer any discounts that you may be eligible for. 

Some insurers offer discounts for certain professional or membership affiliations, or for bundling multiple insurance policies.

9. Review and Update Your Policy Regularly

Regularly review your burial insurance policy to ensure it still meets your needs and aligns with your financial situation. 

As your circumstances change, updating your policy may help you optimize coverage while keeping costs in check.

Tips for Lowering Burial Insurance Costs
Compare Quotes from Multiple Insurers
Maintain a Healthy Lifestyle
Opt for a Smaller Coverage Amount
Pay Annually Instead of Monthly
Choose the Right Policy Type
Evaluate Policy Riders
Work with an Independent Insurance Agent
Take Advantage of Discounts
Review and Update Your Policy Regularly

Final Thought

Understanding burial and final expense insurance costs is crucial for future planning. 

We’ve covered various aspects, including coverage options, cost factors, and average expenses. Calculating your needs helps determine the right coverage. 

Explore our blogs for more insights, including our comprehensive guide on final expense insurance.

FAQ: Burial and Final Insurance Cost

How much does burial and final insurance cost?

The burial final insurance cost can vary based on factors such as age, health, and coverage amount. It is best to request quotes from insurance providers to get an accurate estimate.

What is the final expense burial policy?

Final Expense Life Insurance, also called burial or funeral insurance, is a type of whole life policy. It covers medical bills and funeral expenses upon your death, making it a favored option among seniors.

What is the cheapest burial plan?

Direct cremation stands out as an affordable choice for laying a loved one to rest. Additionally, it provides families with greater flexibility for personalized memorials.

What kind of insurance pays when the last person dies? 

Survivorship life insurance covers two individuals and pays out the death benefit only after both have passed away. It’s commonly bought by couples to leave money to their children, for estate planning, or to provide support for a dependent needing long-term care.

What’s the most economical method for handling a body after death? 

Immediate burial is the cheapest option. Typically, the funeral home manages paperwork, places the body in a casket without embalming, and buries it at a cemetery within a day.

Leave a Comment

Your email address will not be published. Required fields are marked *

Scroll to Top