The Complete Guide to Final Expense & Burial Insurance for Seniors
What is Burial or Funeral Insurance for Seniors?
Like traditional life insurance policies, these funds can be used to pay any outstanding debts owed by the deceased after they pass away. If you’re considering adding this type of policy to your end-of-life plan, get a free online burial insurance quote with Lincoln Heritage Funeral Advantage today.
Table of Contents
Choosing the Best Senior Final Expense Insurance Program
Choosing the right final expense insurance plan is a very personal decision. When deciding whether a standard or pre-need program is best for you, it will help to think about your needs and what you want your plan to cover. Then, you can evaluate which plan makes the best match for you.
| Your Needs | Standard Plan | Pre-need Plan |
|---|---|---|
| I want my family to have options in the service providers they use for my final arrangements. | ✓ | |
| I want my benefits to be able to be used for expenses other than my funeral. | ✓ | |
| I want my beneficiary to receive all of the funds in my plan. | ✓ | |
| I want to prepay for my funeral with a specific funeral home | ✓ | |
| I want my benefits to be paid directly to a funeral home rather than a family member or friend. | ✓ |
How Much Does Burial Insurance for Seniors Cost?
The amount you’ll pay in premiums may be as low as $18 per month or as high as $286 per month depending on the insurance company you choose, your age, sex, coverage amount, and overall health. Your rate will be cheaper if you’re in good health and can answer “no” to the health questions on the application. Some insurers may require a medical exam to qualify, but this isn’t always the case. If you’ve had health issues in the past or are taking certain medications, you may be issued a modified or sub-standard plan and your rates will be higher because of your health.
Finding Affordable Burial Insurance for Seniors
Seniors have many options for burial insurance coverage. It’s important to get a customized quote from two or three providers to find the best match for your needs and budget. You can also work with an insurance agent, who will do the research for you and provide you with the options he or she believes to be the fit for you.
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Burial Insurance Rates for Seniors 60-90
Rates for seniors vary based on age, sex, desired coverage amount, and whether or not you answer health questions. Policies usually offer between $5,000 and $20,000 in benefits to people ages 50 to 85 (learn more about life insurance over 50). Some companies offer their products to people who are over 85, and others have a maximum age limit for those to whom they offer plans. No matter their age, many consumers decide on about $10,000 worth of coverage so they can help cover their funeral costs. You can get an idea of what you’ll pay in premiums for a common $5,000 or $10,000 plan below.
*Note – The following rates do not reflect the rates of any particular insurer.*
Over 60
The average cost of burial insurance over 60 and under 65 ranges between $18 to $88. On average, women are cheaper to insure than men by about $5-$10 per month. The average cost for senior women ranges from $18 to $77, while the cost for senior men ranges from $23 to $88.
| $5,000 Death Benefit | ||
| Determined ‘In Good Health’ by Insurer | No Health Questions Asked | |
|---|---|---|
| Women | $18 – 21 | $24 – $27 |
| Men | $23 – $28 | $29 – $33 |
| $10,000 Death Benefit | ||
| Determined ‘In Good Health’ by Insurer | No Health Questions Asked | |
|---|---|---|
| Women | $33 -$39 | $45 – $77 |
| Men | $43 – $53 | $57 – $88 |
Over 65
The average cost of burial insurance over 65 and under 70 ranges between $22 to $93. In most cases, women are cheaper to insure than men. The average cost for senior women ranges from $22 to $77, while the cost for senior men ranges from $29 to $93.
| $5,000 Death Benefit | ||
| Determined ‘In Good Health’ by Insurer | No Health Questions Asked | |
|---|---|---|
| Women | $22 – $27 | $28 – $33 |
| Men | $29 -$37 | $35 – $42 |
| $10,000 Death Benefit | ||
| Determined ‘In Good Health’ by Insurer | No Health Questions Asked | |
|---|---|---|
| Women | $41 – $51 | $55 – $77 |
| Men | $56 – $70 | $68 – $93 |
Over 70
The average cost of final expense insurance over 70 and under 75 ranges between $28 to $116. In most cases, women are cheaper to insure than men. The average cost for senior women ranges from $28 to $85, while the cost for senior men ranges from $38 to $116.
| $5,000 Death Benefit | ||
| Determined ‘In Good Health’ by Insurer | No Health Questions Asked | |
|---|---|---|
| Women | $28 – $35 | $35 – $43 |
| Men | $38 – $48 | $44 – $58 |
| $10,000 Death Benefit | ||
| Determined ‘In Good Health’ by Insurer | No Health Questions Asked | |
|---|---|---|
| Women | $53 – $68 | $69 – $85 |
| Men | $74 – $93 | $88 – $116 |
Over 75
The average cost of burial insurance over 75 and under 80 ranges between $38 to $162. In most cases, women are cheaper to insure than men. The average cost for senior women ranges from $38 to $125, while the cost for senior men ranges from $51 to $162.
| $5,000 Death Benefit | ||
| Determined ‘In Good Health’ by Insurer | No Health Questions Asked | |
|---|---|---|
| Women | $38 – $48 | $46 – $64 |
| Men | $51 – $65 | $63 – $82 |
| $10,000 Death Benefit | ||
| Determined ‘In Good Health’ by Insurer | No Health Questions Asked | |
|---|---|---|
| Women | $72 – $93 | $90 – $125 |
| Men | $100 – $126 | $125 – $162 |
Over 80
The average cost of burial insurance over 80 and under 85 can range between $51 to $268. On average, women are cheaper to insure than men. The average cost for senior women ranges from $51 to $187, while the cost for senior men ranges from $68 to $268.
| $5,000 Death Benefit | ||
| Determined ‘In Good Health’ by Insurer | No Health Questions Asked | |
|---|---|---|
| Women | $51 – $66 | $69 – $94 |
| Men | $68 – $88 | $89 – $135 |
| $10,000 Death Benefit | ||
| Determined ‘In Good Health’ by Insurer | No Health Questions Asked | |
|---|---|---|
| Women | $98 – $129 | $135 – $187 |
| Men | $133 – $173 | $175 – $268 |
Over 85
The average cost of final expense insurance over 85 and under 90 can be as high as $300 or more. In most cases, women are cheaper to insure than men.
| $5,000 Death Benefit | ||
| Determined ‘In Good Health’ by Insurer | No Health Questions Asked | |
|---|---|---|
| Women | $70 – $107 | $103 or more |
| Men | $93 – $145 | $150 or more |
| $10,000 Death Benefit | ||
| Determined ‘In Good Health’ by Insurer | No Health Questions Asked | |
|---|---|---|
| Women | $136 – $211 | $204 – $286 |
| Men | $183 – $286 | $299 or more |
Over 90
It can be difficult finding an insurer willing to cover someone over the age of 90. If you are accepted, be prepared to pay a very high premium.
| $5,000 Death Benefit | ||
| Determined ‘In Good Health’ by Insurer | No Health Questions Asked | |
|---|---|---|
| Women | $107 or more | Usually ineligible |
| Men | $145 or more | Usually ineligible |
| $10,000 Death Benefit | ||
| Determined ‘In Good Health’ by Insurer | No Health Questions Asked | |
|---|---|---|
| Women | $211 or more | Usually ineligible |
| Men | $286 or more | Usually ineligible |
As these rates show, men pay higher premiums than women of the same age. Prices increase the older you are when you apply, and answering a few questions on your application proving you’re in good health can earn you a cheaper rate.
Planning for Funeral Insurance
Funeral insurance should be part of every senior’s end-of-life planning process. Final arrangements are expensive and can put a huge financial burden on your loved ones, and no one should have to endure this kind of strain when they’re grieving the loss of a beloved family member or friend. In order to make the process easier for your loved ones (learn more about what to do when a loved one dies), add funeral insurance planning to your to-do list when you’re making other end-of-life plans, including:
- Creating or updating your will
- Updating or adding beneficiaries to your financial accounts
- Transferring ownership of property or assets, such as a home or vehicle
- Updating or creating guardianship and other legal records, such as power of attorney (POA), medical directive, and trust documents
If your loved one is a parent, you can learn more about buying life insurance for parents.
Types of Burial & Funeral Insurance Coverage
There are two main types of burial insurance: standard and pre-need. Each can be an invaluable tool for your loved ones to pay for your funeral and all of its related costs, but they are unique in how they disperse funds.
Standard Funeral Insurance
Available as term or whole life insurance policies, beneficiaries of these plans receive funds upon the passing of their loved one once the life insurance claim has been approved. This person can use the money for all aspects of the deceased’s final arrangements, including the:
- Memorial service
- Wake
- Funeral
- Burial or cremation (learn how cremation works)
- Casket or urn
- Headstone
Because the beneficiary receives the benefits directly, they can work with any service providers they like, and aren’t locked into any contracts for using the funds with certain companies or individuals. They also have the option of using these funds to pay other debts owed by or expenses related to their loved one, such as:
- Legal bills
- Hospital, hospice, assisted living, or nursing home bills
- Credit card bills
- Outstanding balances for a home, car, or personal loan
Pre-need Plans
The benefits of a pre-need plan are typically paid directly to the funeral home where arrangements were made prior to death. This means that loved ones planning final arrangements must work with whichever funeral service provider their loved one chose before their passing.
One of the biggest upsides of a pre-need plan is that it allows people the ability to pay for services that may be cheaper now than they will be in the future.
Pros & Cons for Seniors
There are benefits and disadvantages for both standard and pre-need coverage. Weighing the pros and cons for each can help seniors decide which type of plan works best for them.
Standard Coverage
| Pros | Cons |
|---|---|
| Funds dispersed to beneficiary | Loved ones usually need to do more final arrangement planning |
| Easier to get than most life insurance plans, especially for seniors in poor health | Lower benefits than most life insurance plans |
| Beneficiary can work with any service provider(s) they wish | Beneficiary may not carry out your final arrangement plans as you’d wished |
| Funds can be used by beneficiary for expenses other than funeral costs | There’s no guarantee the funds will be used to cover funeral costs |
Pre-need Coverage
| Pros | Cons |
|---|---|
| Funds dispersed to funeral home | Loved ones can only work with funeral home receiving the benefit |
| Easier to get than most life insurance plans, especially for seniors in poor health | Lower benefits than most life insurance plans |
| Loved ones have minimal planning to do | Loved ones have little control over style of funeral, items used, or services performed |
| Can save money by paying for services that are cheaper now than in the future | May end up overpaying for funeral items |
How to Compare Policies for the Elderly
The best way for seniors to compare policies is to do their research, both on standard and pre-need plans and the companies that offer them. The best ways to compare include:
- Getting a custom, free online burial insurance quote from at least two or three companies
- Calling at least two or three companies for a custom quote
- Working with an experienced insurance agent who will compare policies for you and recommend your best options
- Asking loved ones about their experiences with their current policy providers; only use recommendations as a starting point, though, and be sure to get a quote from any company you’re considering
FAQs
What is the difference between burial and funeral insurance?
Burial and funeral insurance are one and the same. This type of policy is also sometimes called final expense insurance.
What is an Automatic Premium Loan (APL) provision?
An automatic premium loan (APL) is a provision you can choose to include in your burial insurance policy. If you miss making a premium payment, an APL allows your service provider to pay it using some of your policy’s cash value. This prevents the policy from lapsing.
What is the contestability period?
The contestability period, which is sometimes included in a burial insurance plan, is a provision in a life insurance policy that allows the insurer a set period of time to examine and deny a benefits claim. In most cases, the window is the first one or two years a policy is in effect. Usually, the provider investigates whether or not the covered individual was honest in their answers to the company’s health questions. If a claim is denied, the insurer refunds all of the premiums the deceased paid.
How long does it take to get paid?
Both pre-need and standard plans pay out once the insurance company has approved the claim. Depending on the insurance company you choose, this can take days or months. It’s important to check with multiple companies to see how quickly their claims are paid.