Funeral Insurance: What Does It Cover?

There is a slogan that says that there is nothing sure in life except taxes and death. Funeral insurance aka burial insurance, or final expense insurance, is designed to cover only the cost of funerals or cremations. Funeral insurance plans are affordable because their monetary costs are lower than a traditional life insurance policy.

Yes, you can use a life insurance policy to help cover funeral expenses, with perhaps a little leftover for the family you leave behind. However, with a specified funeral insurance policy, the cost of a premium is a lot lower. This will help families pay for a funeral who would otherwise be unable to pay for funeral costs.

Funeral insurance coverage can be purchased through independent insurance agents and funeral service providers. Funeral homes that provide insurance are represented by professional insurance specialists. Funeral insurance plans offer fixed-cost packages so that you know in advance what the insurance will cover and what the exact cost of a funeral will be.

More popularly, funeral insurance is also available through traditional insurance companies that also provide many economical packages. The average cost of a 2019 funeral has risen from a few years ago. Today, the costs are generally between $7,000 and $9,000. The average cost of a cremation is not far behind this price due to annual rising costs. A cremation service today can be between $6,000 or $7,000.

A full-coverage burial or cremation insurance policy helps to cover the following:

  • Burial plot or vault
  • Casket or cremation vase
  • Flowers and more
  • Headstone or Marker
  • Service accommodations

The benefits of a funeral insurance plan do not change once you sign up. The benefits include the following:

  • Permanently locked-in premiums
  • Premiums that do not increase
  • Guaranteed death benefits that will not decrease
  • The policy is not affected by age
  • Builds cash value that policyholders can borrow from

Funeral insurance policies are becoming more popular. Many carriers are willing to work with you. Here are just three of the best funeral insurance options:

1. Mutual Of Omaha

  • Affordable rates always stay the same
  • The policy does not expire
  • Face Amount Range: $2,000-$40,000
  • No Waiting Period
  • Available in all states except New York

Mutual of Omaha is a well-respected insurance provider and is one of the best funeral insurance options. As one of the insurance companies that provide funeral insurance, their policy is to make life and death more affordable. Their funeral insurance policy is one of the best on the market.

Their premiums are known to be among the lowest in the industry. The Mutual of Omaha funeral insurance policy does not require a health exam and if you are suffering from a health condition, they will not turn you away. Many applicants can qualify for immediate funeral insurance coverage.

2. Transamerica

  • Affordable rates will not change
  • The policy does not expire
  • Face Amount Range: $1,000-$50,000
  • No Waiting Period
  • Available in all 50 states

Transamerica is one of the few funeral insurance providers that offer a no waiting period for people with existing health conditions. Transamerica is one of the best funeral insurance options with a reputation for being a very fair insurance carrier that offers quality burial insurance at competitive premium rates.

3. AIG

  • Affordable rates will not change
  • Face Amount Range: $5,000-$25,000
  • No Waiting Period
  • Available in all 50 states

AIG (American International Group) provides burial insurance as a term, permanent, or whole life policy. As one of the best funeral insurance options, there are no medical exams required. It is a guaranteed acceptance policy for individuals between 50 and 85. AIG will provide burial insurance coverage even if a terminal or chronic illness is involved.

Funeral insurance plans help groups of individuals prepare for death with dignity. This group involves senior citizens, low-income groups, and individuals who have serious medical conditions that traditional insurance companies do not cover. The best funeral insurance options are more affordable and are the perfect option for people who cannot afford life insurance premiums.

Researching the right funeral insurance plans is not a fun conversation, but like many things in life, it is a necessary discussion. No one wants to leave loved ones with debt. Owning a funeral insurance policy can help to prevent this. Depending on where you live, most funeral insurance plans are under $100 a month. This is far less than what you spend in eating out several times a month and your family will be thankful.