Burial Insurance for Funerals and Final Expenses – Nationwide (2024)

FAQs

Is burial insurance worth buying? ›

If you cannot get life insurance, or you believe that your death will cause significant financial difficulties for your family, you may want to get some burial insurance. If, however, you have some emergency savings or can get a regular term life policy, it might be a much better buy for you in the long run.

The average cost for a burial insurance policy is approximately $50-$100 monthly for roughly $10,000 in coverage. Multiple factors determine the net price, including your exact age, health, tobacco usage (if any), the type of policy, state of residence, and how much coverage you buy.

Unlike traditional term, whole life, and universal life policies, burial insurance is specifically designed to cover one-time and short-term expenses. It isn't meant to replace income or cover large expenses like purchasing a home or paying for college. It isn't a type of retirement plan or investment either.

Cons: Coverage is capped at low amounts and typically isn't available to applicants younger than 45 or 50. Most policies also have a waiting period. This means if you die within two or three years of taking out your policy, your insurer may not pay the full death benefit.

You can assign any beneficiary you want, and they can use the payout for your funeral expenses, medical bills, final utility payments, and other outstanding bills. And if there is money left over, your beneficiary can do with it as they please.

The average funeral costs between $7,000 and $12,000. The viewing, burial, service fees, transport, casket, embalming, and other prep are included in this price. The average cost of a funeral with cremation is $6,000 to $7,000. These costs do not include a cemetery, monument, marker, or other things like flowers.

If you pass shortly after purchasing the policy, your beneficiaries will receive the death benefit. In short: You can purchase guaranteed issued burial insurance no matter what your health, age, or preexisting conditions are, but you will pay a higher premium and have a 2- to 3-year waiting period.

Coverage is typically available for those between the ages of 50 and 85. One of the benefits of burial insurance is that it doesn't require a medical exam to qualify. Depending on the type of policy you pursue, even those without health insurance or who have a pre-existing condition can usually obtain a policy.

Social Security offers a one-time, lump-sum payment of $255 to assist with funeral costs, including cremation costs. Social Security's death benefit program was established in 1935 and the payment was capped in 1954.

Is $8,000 enough for a funeral? ›

The median cost of a funeral is almost $8,000, but can range to over $10,000 depending on the options you choose. Carefully consider what casket, burial, funeral service and memorial options you want to help you estimate if $10,000 is enough for funeral costs in your area.

Direct cremation is the least expensive way to bury your loves one. It is done respectfully, and gives your and your family time to find the most personal and affordable burial option.

Can you be denied burial insurance? Yes, it is possible to be denied coverage due to certain pre-existing medical conditions, however, you can get guaranteed acceptance to cover final expenses with a no medical exam life insurance policy.

Final expense insurance can be a great way to help protect your loved ones with a small payout upon your death. They can use the funds to pay for any final costs and other expenses while they grieve.

Two common types of funeral expense life insurance policies are burial insurance and preneed funeral insurance. * Having either one of these types of funeral expense life insurance policies can allow you to plan ahead for the costs associated with your funeral/final expenses.

One of the primary differences between burial insurance and traditional life insurance is the expedited claims payout. Most conventional life policies take 14-60 days to pay a claim, whereas burial insurance plans can be paid in less than 72 hours. Read burial insurance vs life insurance for more details.

Preplanning a funeral is truly a gift to your family. But if you prepay, it's a gift to the funeral home. Doing the legwork and setting things up ahead of time so your family doesn't have to make a lot of financial decisions in the middle of an emotional situation shows them respect and consideration.

Purchasing a burial insurance policy (or a small life insurance policy designed to cover final expenses) can help prevent the passing of any substantial debt to surviving family members. In addition, a more robust whole or term life insurance policy can help you provide financial support to aging parents or siblings.