Introduction: Understanding Burial Insurance Policies
A burial insurance policy—also known as final expense insurance—is a small whole life insurance policy designed to cover end-of-life expenses such as funeral costs, cremation, burial services, medical bills, and outstanding debts. With funerals now averaging $7,000–$12,000, more families are turning to burial insurance to avoid financial stress during a difficult time.
In this comprehensive guide, you will learn what burial insurance is, how it works, how much it costs, who qualifies, and how to choose the best policy for your needs.
What Is a Burial Insurance Policy?
A burial insurance policy is a type of permanent life insurance that ensures your loved ones receive a tax-free payout when you pass away. Unlike traditional life insurance, these policies are smaller and easier to qualify for.
Key Features:
• Guaranteed payout for funeral and burial costs
• Lifelong coverage—policy never expires
• Premiums remain the same
• Builds cash value over time
• No medical exam required (most companies)
This makes burial insurance particularly attractive for seniors or individuals with medical conditions who may not qualify for traditional life insurance.
What Does a Burial Insurance Policy Cover?
Burial insurance payouts are typically used to cover:
• Funeral home services
• Cremation or burial
• Memorial service
• Casket or urn
• Cemetery plot
• Headstone or marker
• Transportation
• Final medical bills
• Outstanding personal expenses
The benefit can be used for anything, meaning your beneficiaries have full flexibility.
How Much Does a Burial Insurance Policy Cost?
The cost of a burial insurance policy depends on several factors, including:
• Age
• Gender
• Health condition
• Smoking status
• Coverage amount
• Type of policy chosen
Average Monthly Costs:
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Ages 50–60: $25–$50 per month
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Ages 60–70: $40–$80 per month
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Ages 70–80: $70–$150 per month
Coverage amounts usually range from $5,000 to $40,000.
Types of Burial Insurance Policies
There are three main types of burial insurance, each designed for different health and age needs.
1. Simplified Issue Burial Insurance
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No medical exam required
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Health questions included
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Coverage available immediately
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Best rates available
Ideal for people with manageable health conditions.
2. Guaranteed Issue Burial Insurance
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No medical exam
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No health questions
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Guaranteed acceptance (usually ages 50–80)
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2-year waiting period for natural causes
Designed for people with serious medical issues who cannot qualify for standard policies.
3. Level Benefit Whole Life Insurance
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Immediate coverage
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Low premium rates
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Ideal if you’re in good health
Often the most affordable and comprehensive option.
Who Needs a Burial Insurance Policy?
A burial insurance policy is best suited for:
• Seniors who want to avoid burdening family members
• Adults who do not have life insurance
• Individuals with pre-existing conditions
• People who prefer smaller, affordable coverage
• Anyone wanting guaranteed lifetime coverage
If your primary goal is to cover funeral and final expenses, burial insurance is often the simplest solution.
How to Choose the Best Burial Insurance Policy
Choosing the right policy requires evaluating several factors.
1. Know Your Coverage Needs
Calculate expected end-of-life expenses:
Funeral ($7,000–$12,000) + outstanding bills + personal preferences.
2. Compare Multiple Insurance Companies
Look for:
• Strong financial ratings
• Lifetime premium guarantees
• No waiting period options
• Competitive pricing for your age
3. Choose the Best Policy Type for Your Health
Healthy? Choose Simplified Issue or Level Benefit.
Significant health issues? Choose Guaranteed Issue.
4. Work With an Independent Agent
They can compare quotes from multiple providers to find you the best rate.
Pros and Cons of Burial Insurance Policies
Pros:
• Affordable monthly payments
• Easy approval, even for seniors
• No medical exam
• Lifetime coverage
• Fixed premiums
• Money paid out tax-free
Cons:
• Lower coverage amounts than traditional life insurance
• Guaranteed issue policies have a waiting period
• Higher cost per $1,000 of coverage
Best Burial Insurance Companies (2025)
While companies vary by state, commonly top-rated burial insurance providers include:
• Mutual of Omaha
• Aetna
• Foresters Financial
• Lincoln Heritage
• American Amicable
• Gerber Life (Guaranteed Issue)
Always compare at least 3–5 quotes before purchasing.
How to Apply for a Burial Insurance Policy
The process is simple and typically takes less than 20 minutes.
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Choose your coverage amount
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Answer basic health questions (if applicable)
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Select a beneficiary
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Sign the application (digitally or on paper)
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Start paying your premium
Most policies activate immediately if approved.
Final Thoughts: Is a Burial Insurance Policy Worth It?
If you want to ensure your loved ones aren’t left with financial burdens during a difficult time, a burial insurance policy is an affordable and reliable solution. It provides guaranteed protection, easy qualification, and peace of mind—especially for seniors and individuals with health concerns.
For most people, a burial insurance policy is not only worth it, but one of the smartest financial decisions for end-of-life planning.
