After evaluating 34 life insurance providers, we at the MarketWatch Guides team selected Fidelity Life and Mutual of Omaha as the best companies offering burial insurance.
Burial life insurance, also called final expense insurance or guaranteed issue insurance, provides a small lump sum upon the insured person’s death to help loved ones pay for a funeral or cremation. This type of whole life insurance can offer a suitable way to cover end-of-life costs for senior applicants or those in poor health, but it’s not right for everyone. Before signing up for a final expense policy, check with a trusted financial advisor to make sure it’s right for you.
Top 5 Burial Insurance Companies
Here are our five picks for the best burial insurance companies:
- Fidelity: Our top pick
- Mutual of Omaha:Best for no-exam coverage
- AAA:Best for coverage transparency
- State Farm:Best for customer satisfaction
- MassMutual:Our pick for permanent life coverage
Fidelity Life
Our top pick
4.2
Coverage: 4.1/5
Riders: 4.4/5
Availability and Ease of Use: 4.7/5
Brand Trust: 2.9/5
Sample Cost$28-$68Policies OfferedTerm and wholeA.M. BestA-
Pros and Cons
Pros Has two plans intended to cover final expenses, including a guaranteed-issue option that does not require medical questions Consumers can get online quotes in a few seconds for burial insurance plans Holds “excellent” A- financial strength rating from the credit rating agency AM Best Cons Doesn’t offer the option to purchase burial insurance policies online Has a minimum eligibility age of 50 for final expense plans, which is higher than companies such as Mutual of Omaha
Key Takeaways About Fidelity Life Burial Insurance
- Fidelity Life is our top pick because it offers two policies specifically designed to cover final expenses — RAPIDecision Final Expense and RAPIDecision Guarantee Issue. Both plans are available to applicants between 50 and 85 years old.
- The RAPIDecision Final Expense plan offers up to $40,000 in coverage to applicants who qualify after answering a few health questions.
- The RAPIDecision Guaranteed Issue policy, which does not require a health screening, provides a death benefit of up to $25,000 that policyholders can use for end-of-life expenses and burial costs.
Mutual of Omaha
Best for no-exam coverage
4.8
Our Review
Sample Cost$21-$50Policies OfferedTerm, whole and universalA.M. BestA+
Pros and Cons
Pros Applicants can enroll in a guaranteed issue plan at 45 years old, a younger minimum age than competitors such as Fidelity Life Offers a simplified issue final expense plan called Living Promises, which provides up to $50,000 in coverage to qualified applicants Ranked fourth out of 22 companies in J.D. Power’s 2023 Individual Life Insurance study, which measures customer satisfaction Cons Does not advertise the Living Promise final expense policy on its website, which can make it difficult to find coverage information Limits the guaranteed issue plan for New York residents, who can only apply between the ages of 50 to 75
Key Takeaways About Mutual of Omaha Burial Insurance
- Mutual of Omaha offers guaranteed issue plans to new enrollees between the ages of 45 to 85, with end-of-life benefits ranging from $2,000 to $25,000. This type of coverage does not require medical questions or traditional underwriting, making Mutual of Omaha our pick for no-exam coverage.
- The guaranteed issue policy features a graded death benefit, which means your beneficiaries receive a reduced benefit if you die of natural causes within the first two years. After two years, the full benefit is paid if the policyholder dies due to any cause.
- Alternatively, the company’s Living Promise plan is a final expense whole life policy offered to people aged 45 to 85. Applicants must answer a series of health questions, with coverage amounts ranging from $2,000 to $50,000 for those who qualify.
AAA
Best for coverage transparency
4.2
Coverage: 4.4/5
Riders: 5/5
Availability and Ease of Use: 4.7/5
Brand Trust: 5/5
Sample Cost$22-$52Policies OfferedTerm, whole and universalA.M. BestA
Pros and Cons
Pros Offers two whole life plans intended to cover end-of-life expenses Final expense whole life policies offer up to $75,000 in coverage AAA members receive a 10% discount on select final expense policies Cons Received a higher-than-expected volume of customer complaints from the National Association of Insurance Commissioners (NAIC) Not rated in the most recent J.D. Power customer satisfaction study
Key Takeaways About AAA Burial Insurance
- AAA offers two whole life plans intended to cover final expenses and burial costs: the Whole Life Insurance and Guaranteed Issue Whole Life Insurance policies.
- The Whole Life Insurance plan offers between $5,000 and $75,000 to eligible applicants between the ages of 18 to 85. To apply, you must answer some health questions and speak directly to an agent. Available riders include child term, disability waiver of premium, accidental death and travel accident coverage.
- The Guaranteed Issue plan offers benefits between $3,000 and $25,000 with no health questions or medical exam. You can apply online, by mail or over the phone.
- The AAA website offers comprehensive information about all its life insurance plans, earning the company our pick as the best for coverage transparency.
We contacted AAA for a comment regarding its NAIC complaint ratio, but did not receive a response.
State Farm
Best for customer satisfaction
4.6
Coverage: 4.7/5
Riders: 4.4/5
Availability and Ease of Use: 3.9/5
Brand Trust: 4.9/5
Our Review
Sample CostN/APolicies OfferedTerm, whole and universalA.M. BestA++
Pros and Cons
Pros Offers a guaranteed issue plan with instant coverage available Features a single premium whole life policy with a minimum benefit of $15,000 Holds the highest possible financial strength rating from AM Best, indicating an ability to payout claims Cons Guaranteed issue maximum coverage amount of $15,000 is lower than the other competitors in this review Requires you to work with an agent to get quotes for single premium whole life insurance plans, including burial insurance
Key Takeaways About State Farm Burial Insurance
- State Farm earned a place on our list because of its guaranteed-issue whole life plan for applicants between the ages of 45 and 80 years old. The company extends coverage amount options of $10,000 or $15,000 and applicants can apply online and get covered instantly.
- The company’s single premium whole life insurance policy, which you can use as burial insurance, is open to those aged 0 to 80, with coverage amounts starting at $15,000. The policy offers lifetime protection with one premium payment. Applicants must work with an agent and answer health questions to obtain a policy.
- The single premium whole life policy is considered a modified endowment contract, making any cash value withdrawals taxable.
- State Farm is our pick for customer service because of its high customer satisfaction ratings, including being rated No. 1 on J.D. Power’s customer satisfaction study.
MassMutual
Best for permanent life insurance
4.7
Coverage: 4.7/5
Riders: 5/5
Availability and Ease of Use: 4.7/5
Brand Trust: 4.6/5
Our Review
Sample Cost$22-51Policies OfferedTerm, whole, universal and variable universalA.M. BestA++
Pros and Cons
Pros Offers a guaranteed issue whole life plan that customers can use as burial insurance Ranked third out of the 22 insurers profiled on J.D. Power’s 2023 customer satisfaction survey Holds an A++ financial strength grade with AM Best, the highest possible rating Cons Website offers little information on whole life policies such as its guaranteed issue plan Maximum age of 75 for the guaranteed issue plan lower than competitors such as Mutual of Omaha and AAA
Key Takeaways About MassMutual Burial Insurance
- We named MassMutual our pick for permanent life insurance because its comprehensive coverage portfolio includes a selection of whole life, universal and variable universal policies. You can use whole life insurance plans such as final expense and guaranteed acceptance policies to cover burial costs.
- MassMutual offers a guaranteed issue policy to applicants from ages 50 to 75. Policyholders can choose coverage amounts between $2,000 and $25,000 to cover their final expenses.
What Is Burial Insurance?
Burial insurance is a type of life insurance that helps cover your end-of-life expenses when you pass away. Burial policies are a type of permanent life insurance. Unlike term policies, which expire after a certain time, permanent coverage protects you until your death — as long as you pay your premiums. A burial life insurance plan comes with lower-than-usual death benefit options, such as a maximum of $25,000. Lower death benefit amounts help keep the cost of premiums down while still covering some or all of your final expenses like burial, cremation or funeral costs.
Generally, burial insurance policies don’t require a medical exam. Many policies are also guaranteed-issue, which means anyone who applies qualifies for a plan. This makes burial coverage an ideal solution for someone with failing health or seniors who won’t qualify for traditional life insurance.
Difference Between Burial Insurance and Traditional Life Insurance
Burial insurance, also known as final expense coverage, is a specific type of life insurance policy that covers short-term expenses associated with the policyholder’s death, such as funeral or cremation costs. Burial insurance typically features a much smaller coverage amount, or death benefit, than traditional term, whole or universal life insurance policies. For instance, traditional life insurance policies typically range from $100,000 to well over $1 million in coverage. Burial or final expense plans generally offer a maximum of between $25,000 to $50,000 in coverage.
Unlike traditional life insurance, burial insurance is not meant to replace lost income or provide long-term financial support to a policyholder’s beneficiaries. Traditional policies with larger death benefits are generally designed to provide long-term financial support including mortgage payments, credit card debt, tuition and student loans, and maintaining a standard of living after the policyholder dies.
Does Traditional Life Insurance Cover Burial Costs?
Generally, named beneficiaries can use a life insurance payout to cover whatever they want, including end-of-life costs. The primary purpose of life insurance is to provide financial support to your beneficiaries or dependents, which can include burial costs and final expenses. The death benefit can also replace your lost income and pay outstanding debts such as a mortgage loan, credit card debt, and school tuition or loans.
Final Expense Insurance vs. Burial Insurance
Final expense insurance is another name for burial insurance. Generally, final expense policies do not require a medical exam. However, you may have to answer health questions to qualify for coverage. Alternatively, guaranteed-issue life insurance can cover your final expenses without requiring a medical screening. As long as you are within the eligible age range, you can purchase a plan and cannot be denied coverage for health reasons. Some insurance carriers may market burial insurance as final expense insurance, but these plans are designed to cover the same costs.
Alternatives to Burial Insurance
Not sure if burial insurance is right for you? Several alternatives to burial or funeral insurance might make sense for your situation.
- Term life insurance: Term policies often offer the best combination of coverage and value. In addition, many providers offer term life insurance with no medical exam. However, a term policy has an expiration date, and many term providers limit the age of new applicants. Term coverage could be a good alternative to burial insurance for someone younger who is facing poor health.
- Traditional whole life insurance: Most burial insurance policies are a type of whole life coverage, which means you pay a set premium for the life of the policy. However, traditional whole life policies often offer higher death benefits than burial coverage and may provide more cash value growth. They’re also generally much more expensive than burial coverage and require a medical exam.
- Universal life insurance: Universal life insurance is a permanent life insurance policy that lets policyholders adjust their premiums and death benefit, with certain limits. The types of universal life policies include indexed universal life and variable universal life. Although more expensive than burial coverage, the adjustability of a universal life policy can make it an attractive alternative. Like traditional whole life policies, universal life coverage generally requires a medical exam.
Factors That Affect the Cost of Burial Insurance
Although many burial life insurance policies guarantee coverage for seniors, the average cost isn’t the same for everyone. An insurance provider uses several factors to determine your insurance cost, such as:
- Age: Older people generally pay higher premiums because there’s more risk to insure you.
- Gender: Typically, men pay higher life insurance premiums than women.
- Health: While you may not have to go through medical underwriting with an exam, many burial insurance companies ask health questions to identify any health conditions.
- Amount of coverage: Choosing a higher coverage amount generally increases the amount you pay.
Is It Worth Buying Burial Insurance?
Burial life insurance often has a higher relative cost per benefit when compared with other types of life insurance, even though you may pay lower monthly premiums. But burial coverage could still offer an ideal life insurance solution for you.
You May Find Burial Insurance Worth It If:
- You’re a senior in poor health and don’t have other life insurance policies or a large savings. Maybe you want to lessen the financial burden on your family by using burial insurance to cover your funeral costs, including embalming or cremation fees and funeral home director fees.
- You’re an adult who’s been diagnosed with a condition that will shorten your lifespan, such as advanced cancer or dementia. You want to help your loved ones cover your funeral costs but worry you will not get approved for traditional life insurance due to your health.
You Might Not Find Burial Insurance Worth It If:
- You have an existing permanent life insurance policy with a death benefit amount large enough to cover your final expenses.
- You’ve chosen the funeral and burial services you want and have a savings account to cover the costs.
- You’re young and in good health, giving you a better chance to secure permanent life insurance for the lowest cost.
Frequently Asked Questions About Burial Insurance
Although burial insurance is a type of life insurance, it generally offers low death benefit amounts. Burial coverage provides a life insurance option for seniors and those in poor health when traditional life insurance is no longer an option.
However, those who are young and healthy may want to consider traditional permanent or term life insurance. The ratio of costs to benefits of a traditional life insurance policy is generally lower than burial insurance.
Burial insurance can be worth it if you’re a senior without other life insurance policies or savings to cover the cost of a funeral. A burial policy could be an affordable way to help your loved ones cover your burial and funeral costs when you pass without having to max out their credit cards.
Many life insurance industry products could cover the cost of funeral expenses, including term and permanent coverage. For example, you might choose a death benefit on your whole life policy that’s enough to pay for your funeral costs and give your loved ones enough money for financial stability.
Burial insurance, however, is specifically designed to cover end-of-life expenses such as funerals or burial costs.
The biggest drawback of burial insurance is the high cost ratio compared to other types of insurance. When comparing the cost to benefits of a burial insurance policy, you’ll pay more per dollar of death benefit than other types of life insurance, even though the monthly premium may be lower.
Additionally, most burial insurance has a graded death benefit that works on a type of waiting period. This means the insurance company may reduce the full death benefit or deny a claim if you die within the first two years of the policy.
Burial policies and funeral policies typically offer the same benefits — providing money for your loved ones to use toward your burial, memorial service and other end-of-life costs.
Methodology: Our System for Rating Life Insurance Companies
Our team researches and ranks life insurance companies using an in-depth scoring system that considers the factors most important to consumers like you. Our analysis includes a comprehensive review of each provider we feature based on available coverage, customizability, availability, customer service and company reputation. Here are the factors we take into consideration when rating life insurance providers:
- Brand trust (40%): Life insurance payouts can exceed $100,000 or more, which makes choosing a reputable and trustworthy insurance provider important. To assess brand trust, we use J.D. Power and Associates customer satisfaction surveys, AM Best credit rating scores and the National Association of Insurance Commissioners (NAIC) complaint index. The higher a company scores in each area, the more points it receives.
- Coverage (33%): The more policy options a life insurance company offers, the more opportunities you have to obtain the right coverage for your specific needs. For this reason, we give companies the most points for offering multiple types of life insurance, including various term, permanent and no-exam options.
- Availability and ease of use (19%): Since life insurance coverage options can be complex, we consider the ways a customer can reach a company — and how easy communication is. For this category, we research how many communication channels a company offers for general customer support, claims processing and the application process. Companies earn the most points for offering various ways to interact with an agent, both in-person and online.
- Riders (8%): Companies offering various life insurance riders or endorsem*nts allow policyholders to better customize their coverage. In this category, we determine how many riders a company offers and award the most points to providers with more than 10 options.
We use our rating system to compare and contrast each company against key factors to help us determine the best life insurance companies in the industry. To learn more, read ourfull life insurance methodologyfor reviewing and scoring providers.
AM Best Disclaimer
If you have feedback or questions about this article, please email the MarketWatch Guides team at [email protected].
