What Is the Best Burial Insurance for Seniors?
State Farm, Ethos and AARP/New York Life sell some of the best burial insurance.
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Best Burial Insurance Companies
To choose the best burial insurance companies, ValuePenguin's experts reviewed customer service ratings, policy amounts and details, online experience and in-person agent availability for major life insurance companies.
Read our full methodology.
Best burial insurance for seniors
State Farm has the best burial insurance if you want to work with an in-person agent.
Ethos is a great option if you want to get your plan online, and AARP/New York Life lowered its rates. What you pay for burial insurance depends on your age, health and the company you pick. The best way to find out your rates is to shop around and compare life insurance quotes.
Company | Best for | |
|---|---|---|
| State Farm | Bundling |
| Ethos | Online quotes |
| AARP/New York Life | Low rates |
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Burial insurance, also called final expense insurance or funeral insurance, is a type of whole life insurnace that can help your loved ones pay for your funeral and other end-of-life costs. The policies usually have less coverage than other types of life insurance, often only paying out up to $25,000 when you pass away. Your loved ones can use this money to pay for your funeral, casket, cremation or any other costs, like medical bills or legal fees.
Best for bundling: State Farm
- Policy limits: $10,000-$15,000
- Available if you're between 45 and 80
State Farm is a great option if you want all your insurance policies with one company.
Pros
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Makes handling your insurance convenient
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Local agents available
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May give you a discount for bundling life and auto insurance
Cons
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Can't buy a policy online
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Only up to $15,000 in coverage
State Farm is a great option for funeral insurance if you want to keep all your policies with the same agent. State Farm also sells some of the best car insurance and home insurance, and its local agents can help you decide how much final expense insurance is right for you.
Getting your burial insurance from the same local State Farm agent that handles your auto and home insurance could also make it easier on your loved ones to handle your insurance after your death. Plus, you might get a discount on your car insurance for buying State Farm life insurance.
However, State Farm's final expense policies can only give you up to $15,000 in coverage. That's quite a bit lower than many other companies, which offer up to around $25,000 in coverage. State Farm's plans are only a good option if you need minimal coverage.
Best for online quotes: Ethos
- Policy limits: $2,000-$100,000
- Available if you're between 45 and 85
Ethos lets you get final expense insurance quotes and buy a policy online.
Pros
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Can buy a policy fully online
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Fast application process and instant approval
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Can get up to $100,000 in coverage
Cons
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Coverage amounts depend on your age and health
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Rates and service depend on the company Ethos connects you with
Ethos is a great option if you want to get a quote and buy a policy fully online. You can also call Ethos and get a policy over the phone. Quotes and applications should only take about 10 minutes. You can also get approved instantly, which makes Ethos a good option if you need coverage fast.
Ethos isn't actually an insurance company. Instead, it's what's called an insurance broker. This means that Ethos works with six different insurance companies to sell policies.
- Ameritas
- John Hancock
- Legal & General America
- Mutual of Omaha
- Protective Life
- TruStage
It could be a good idea to check your rates for the same policy directly from each insurance company. Once your policy is active, you'll be able to see the details on the Ethos website. But when you die, your beneficiary will need to contact the insurance company to file a claim, not Ethos. This can make it a bit more confusing than getting a policy directly from an insurance company.
Ethos also sells final expense plans up to $100,000, which is much higher than most companies. However, you might not be able to get that much coverage, depending on your age and health.
Most affordable plans: AARP/New York Life
- Policy limits: Up to $30,000
- Available if you're between 50 to 80
AARP/New York Life has cheap rates for final expense policies.
Pros
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Advertises low rates
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Spouses of AARP members can also get coverage
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Members get access to AARP's other perks
Cons
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AARP membership required
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Must be at least 50 to get a plan
AARP could be a good option for cheap rates, as the company advertises that it lowered its costs for final expense insurance by 21%. It's still worth shopping around to make sure you're getting the best rate, but AARP is a good place to start if budgeting is your main concern.
You have to be an AARP member to get coverage from AARP/New York Life. A membership costs $20 per year and gives you access to all AARP's perks and discounts.
AARP/New York Life final expense plans can give you up to $30,000 in coverage, which is a fairly standard amount for this type of insurance. You don't have to take a medical exam to get coverage, and you're guaranteed to be able to buy a policy even if your health is poor. However, you'll likely be charged a higher rate if you're older or have health issues.
In most states, you have to be between 50 and 80 to get an AARP/New York Life burial insurance policy. However, spouses of AARP members can get a plan between the ages of 45 and 80. In New York, both members and spouses have to be between 50 and 75.
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What is burial insurance for seniors?
Burial insurance is a type of life insurance you buy to cover the cost of your funeral and other end-of-life expenses.
Burial insurance is also called final expense insurance or funeral insurance, and it's essentially just a small life insurance policy. When you buy a policy, you'll choose a coverage amount, called a "death benefit," and a person to receive the money from your policy, called a beneficiary.
When you die, your beneficiary will get the death benefit payout from your policy. They can use this money to pay for your end-of-life costs.
- Funeral service
- Casket
- Embalming
- Burial plot
- Headstone
- Cremation
- Medical bills
- Legal bills
The money from your final expense policy can be used for anything. Your beneficiary doesn't have to use it for your funeral and other end-of-life expenses. They can use it to pay off your medical bills or to hire a probate lawyer.
Types of funeral insurance
There are two types of funeral insurance that you can buy: traditional burial insurance and "pre-need" insurance.
The biggest difference between the two types is how your loved ones can use the money when you pass away. With a traditional plan, your beneficiary can use the money for anything. With a pre-need plan, you select your funeral arrangements ahead of time and the money has to be used for that.
Traditional or standard burial insurance is the kind you buy from a life insurance company. You choose a death benefit and a beneficiary to get the money when you die. Your beneficiary can then use the money for anything. While these policies are designed to cover the costs associated with your funeral or burial, your beneficiary has the freedom to use the money as needed.
Coverage amounts are low compared to other types of life insurance, usually only up to about $25,000. Because these policies are a type of whole life insurance, which is coverage that lasts until you die and doesn't expire, the rates won't change as you age.
Pre-need insurance is a plan you buy from a funeral home. You'll choose a specific funeral home to work with and plan your funeral in advance. The funeral home will let you know how much everything costs, and you'll pay for it ahead of time. That way, when you pass, your loved ones don't have to worry about planning or paying for a funeral.
Pre-need insurance can make things easier on your loved ones, but it's also much less flexible than traditional burial insurance. Your loved ones won't be able to use the money to pay off medical bills, debts, legal fees or any other costs that arise after your death. If you buy a pre-need plan, it might be a good idea to also have a separate life insurance plan or money set aside specifically to help your family and friends pay for unexpected costs.
How much does funeral insurance cost?
Funeral insurance rates depend on your age, health and the company you pick.
The younger and healthier you are when you apply for coverage, the cheaper your policy is likely to be. Many insurance companies have a rule that they can't decline to sell you a policy because of your health. These policies are called "guaranteed issue." However, the companies can and likely will charge you much more if you're older and in poor health.
The youngest you can get a funeral insurance policy is usually between 45 and 50, depending on the insurance company.
You might not be thinking about your funeral in your 40s and 50s, but it's a good time to get quotes for a final expense policy. If you wait until you're in your 70s and 80s, rates will be much more expensive. And because rates on whole life insurance plans don't go up over time, getting a policy early lets you lock in lower rates. Once you're past 80 or 85, you might not be able to get a policy anymore.
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How to pick the right final expense coverage amount
To choose the right coverage amount for a final expense plan, think about what kind of funeral or service you want and research how much it could cost.
You can talk to local funeral homes to get a sense of how much you might need to cover the kind of end-of-life services you want. You might want to buy more coverage than you need to keep up with inflation and other changes in price or to make sure your beneficiary has enough money to pay for other costs, like leftover medical bills, that you might have.
If you want to leave money to your beneficiary as a gift, or if you have outstanding debts, it might be worth looking into other types of life insurance. Final expense insurance comes with lower coverage amounts than regular term or permanent life insurance because it's designed to just pay for your end-of-life costs. While your beneficiary might have money left over after paying for your funeral, it isn't guaranteed.
Do I need a funeral plan if I already have life insurance?
If you already have life insurance, you might not need a funeral insurance plan. But it depends on how much coverage you already have and what you want your loved ones to be able to do with the money.
For example, maybe you bought a policy with $300,000 of coverage so that your spouse could pay off your mortgage if you pass away. If you've paid a significant amount off your mortgage, your spouse might have enough money to pay off the mortgage and cover your funeral if you die. But if your spouse still needs all that money to pay for your house, you might want to get a separate policy to cover your funeral expenses.
You should also think about how long your current life insurance policies are. If you bought a 20-year term policy 15 years ago, for example, it only has 5 years of coverage left. You may want to think about converting it to a permanent policy or getting a new final expense policy to cover your funeral once your term policy runs out.
It's also easier and cheaper to buy life insurance when you're younger and in good health. You don't have to take a medical exam to get most final expense policies, but you do have to answer medical questions. The older you are and the worse your health is, the more you'll pay. It's a good idea to plan ahead and get coverage when you're in good health.
If you don't have any life insurance, you can include your estimated funeral costs in your calculations. That way, you can get one policy with enough coverage for everything, rather than having to get multiple policies.
Frequently asked questions
Can I get burial insurance with no waiting period?
You can get burial insurance coverage right away, with no waiting period, but it depends on the insurance company's rules. Many companies will start your policy the same day or the next day after you apply. But if you die in the first two years of the policy, your beneficiary won't get the full death benefit. Instead, the insurance company refunds what you've already paid for the policy, usually with interest.
What are the disadvantages of burial insurance?
Burial insurance, also called final expense insurance, doesn't give you much coverage. Usually, the policies only go up to around $25,000. If you think your loved ones will need more than that to pay for your funeral and other end-of-life costs, you might want to look into a different type of insurance. Your beneficiary also probably won't get the full coverage amount if you pass away in the first two years of the policy.
Is it worth buying burial insurance?
Burial insurance can be worth it if you just need coverage for your end-of-life costs. It can help your family and friends pay for your funeral, burial or cremation, headstone, final medical bills and even things like flowers or food for a memorial service. But if you want to leave your loved ones a larger financial gift or if you have debts to pay off, getting a different life insurance policy with a bigger death benefit is probably a better idea.
Methodology
To choose the best burial insurance companies, ValuePenguin analyzed major whole life insurance companies by looking at digital experience, customer satisfaction, and policy details like death benefit limits and the ages that can buy a plan.
Sources include the National Association of Insurance Commissioners and J.D. Power.
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