4 Best Burial Insurance Companies in September 2024

If you imagine the typical life insurance buyer, you may think of a young couple with a newborn and a mortgage. However, people at other stages of life can also benefit from life insurance, including seniors whose children are grown and whose mortgages are long since paid back.

Burial insurance policies are typically marketed to seniors as a way to set aside money for end-of-life expenses, such as a funeral, burial, or cremation. The coverage is sometimes delicately referred to as “final expense coverage.”

These policies are usually easy to buy. Each company in our review offers burial insurance without a medical exam (so those with pre-existing conditions can qualify for coverage) and online price quotes.

Our recommendations

Best burial insurance companies compared

*Taken from online quotes

Methodology

We gathered information about four leading providers of burial insurance. Our price quotes were based on a 62-year-old male living in Ohio. Policy information, including available coverage levels, policy rules, riders, and benefits, came primarily from publicly available information published online by the insurance companies.

How to compare burial insurance companies

When shopping for burial insurance, here are a few things to consider.

Coverage levels

The insurers in our review offer differing coverage levels. You should choose an insurer that offers the amount of coverage you believe you need for your final expenses.

Medical exam requirement

All of the insurers in our review offer guaranteed acceptance policies. These policies do not require a medical exam or questionnaire and typically accept customers with pre-existing conditions. This is an obvious plus if you’re uncomfortable submitting to a medical exam.

Waiting period

Burial insurance policies typically include a waiting period before paying out the full benefit. If the policyholder passes away during that period, the policy may pay only include partial benefits. All of the policies in our review offer a two-year waiting period during which you get a reduced death benefit (typically equal to the amount of premium paid plus 10%).

Company financial stability and reputation

While all of the companies in our review are financially solid performers, not all insurers are alike. A company’s financial strength rating can give you quick insight into how well a company is run and whether you can have confidence in its ability to pay your claim when the time comes. AM Best rates companies’ financial strength with grades ranging from A++ (Superior) to D (Poor).

You can also get a sense of a company’s commitment to customer satisfaction through third-party rankings, such as those compiled by J.D. Power.

Customer support

Whereas insurance was once sold almost exclusively through agents and brokers, today's product is often conveniently sold online. However, some people may prefer the guidance of an expert when purchasing something as crucial as life insurance. All of the insurers in our review have both online quotes and toll-free support lines and/or local agents.

Alternatives to burial insurance

According to the National Funeral Directors Association (NFDA), the median cost of a funeral with a burial is approximately $7,848. A cremation brings that down to $6,971. Either way, it’s a significant expense to leave to mourning loved ones.

The good news is that burial insurance isn’t the only option. Consider funding your final expenses through one of these means.

Prepaid funeral plans

Some funeral homes offer to work with individuals interested in prepaying their funeral expenses. Just be sure to review the agreement carefully and understand that if the home goes out of business, you could lose your investment.

Personal savings

You can set aside funds earmarked for your funeral in a special savings account or other low-risk financial instrument. A payable-on-death (POD) account, sometimes called a “Totten Trust,” allows you to set aside money payable to a specific beneficiary without being tied up in probate.

Government assistance

Depending on your circumstances you may be eligible for reimbursement of some burial costs from the U.S. government. Some U.S. military veterans, for example, are eligible for a VA burial and funeral cost benefit, along with internment in a national military cemetery.

Medicaid

You may be able to use the Medicaid spend-down process to prepurchase funeral goods and services provided by a funeral home.

More on burial insurance policies

What is burial insurance?

Burial insurance is a type of life insurance intended to ease the financial burden on the policyholder’s family and loved ones after their death. These policies typically have a face value of $25,000 or less and can be used to pay for a funeral and burial or cremation, as well as other end-of-life expenses. Policies may be referred to as “final expense insurance.” They’re usually marketed to those between the ages of 50 and 80.

Burial expense policies typically do not require a medical exam and accept people with pre-existing health conditions. Depending on the policy, there may be a waiting period (for example, two years) before you can get the full benefit.

How does burial insurance work?

As with virtually any other type of insurance, someone interested in burial insurance should complete a policy application. Many insurers offer online applications, and you can also purchase them through agents. The individual must choose a coverage amount and designate a beneficiary who will receive that money as a death benefit.

Once the policy is in effect, the policyholder pays an annual premium to the insurer. Term policies expire at the end of a set period, while whole life policies remain in force until the end of the policyholder’s life.

The beneficiary should file a claim with the insurer when the policyholder dies. They may need to provide a copy of the death certificate for confirmation. Assuming the death meets the conditions of the policy contract (a suicide, for example, may be excluded from coverage), the insurer will pay the death benefit to the beneficiary, who can use that money as needed for the policyholder’s funeral or other end-of-life expenses.

Types of burial insurance

Virtually any kind of life insurance policy, including traditional term life or whole life, can be used to pay for end-of-life expenses. Unless the policy stipulates how funds are to be used (such as to pay off a mortgage), some or all of the death benefit could be put toward those costs.

However, the term “burial insurance” typically refers specifically to two types of life insurance policies:

• Guaranteed issue. This policy has no underwriting, so virtually all applicants are approved, regardless of their health.
• Simplified issue. This policy requires no medical exam, but an applicant may have to answer a questionnaire outlining their health and medical history, which the insurer will use to determine eligibility for coverage. Because insurers underwrite these policies, they usually cost less than guaranteed-issue policies.

Pros and cons of burial insurance

Burial insurance can be an effective way to ensure that relatives and loved ones aren’t saddled with funeral and related costs. When shopping for a policy, be sure you understand its pros and cons.

Factors that affect the cost of burial insurance

Several factors affect the cost of burial insurance. These vary by policy but may include:

• Insurance company.
• Coverage amount.
• Inclusion of riders or other features.
• Type of policy.
• Age and gender of the applicant.
• State where the applicant lives.
• Whether the applicant uses tobacco products.

Is burial insurance worth it?

Removing the cost of a funeral from the list of things your loved ones need to worry about when you pass is certainly a worthy goal. Still, burial insurance may not be the optimal way to achieve this. It depends partly on your age and health.

As we’ve seen in our review, the cost of $10,000 worth of burial insurance can range from about $750 to more than $1,000 per year. If you’re still young, in decent health, and expect to live for many more years, setting aside that money in a POD savings account might make more sense.

TIME Stamp: Burial insurance can help cover your end-of-life expenses

Burial insurance is a life insurance policy that helps pay for a funeral, viewing, burial or cremation, and other related expenses. A policy can help remove some financial burden from your loved ones’ shoulders, but it’s not right for everyone.

Alternatives do exist. Before purchasing burial insurance, check with multiple companies to compare costs. Also, consider other options you might have to help your family pay for these expenses.

Frequently asked questions (FAQs)

Who has the cheapest burial insurance?

According to our review, Mutual of Omaha has the cheapest burial insurance. Our quote is based on a 62-year-old male living in Ohio who is seeking $10,000 in coverage and a guaranteed-issue policy. Note that your quote may vary by company, age and gender, coverage needs, and other factors.

How much does a funeral cost?

The National Funeral Directors Association estimates the average cost of a funeral with a viewing and burial to be about $7,848.

What type of insurance policy pays for funeral and burial costs?

Burial insurance is typically purchased by seniors who want a policy to pay for funeral and burial costs. However, the death benefit from a traditional term life or whole life policy can also be used to pay for these costs, provided it’s not stipulated in the policy that the money be put to another use.

What is the difference between burial insurance and life insurance?

Burial insurance is a form of life insurance. Unlike traditional life insurance policies, burial insurance policies have a low face value and typically do not require a medical exam.