Life Insurance

Who Has The Best Burial Insurance

By David Krug David Krug is the CEO & President of Bankovia. He's a lifelong expat who has lived in the Philippines, Mexico, Thailand, and Colombia. When he's not reading about cryptocurrencies, he's researching the latest personal finance software. 8 minute read

How can you make sure your passing doesn’t cause financial hardship for your loved ones if you haven’t saved anything? As such, it is important to have access to burial insurance. This sort of whole-life policy is commonly referred to as last expenses insurance because it helps pay for expenses that arise after death. 

Things like final arrangements, memorial service expenditures, unpaid medical bills, and outstanding loans are all examples. There are a plethora of reliable insurers that offer funeral and burial insurance.

The Top Funeral Insurance Providers

The companies listed here are currently the top providers of burial insurance. Each excels in one respect, whether it be giving superior value to policyholders or welcoming people from an especially broad age range.

Globe Life Insurance is our top pick since it excels in so many areas: policy cost, eligibility criteria, and policy flexibility. We think it’s the most cost-effective solution for most people.

1. Globally, Globe Life Insurance

Globe Life Insurance provides an impressive number of selling elements, thus we chose it as our top selection for burial insurance:

  • Avoid the hassle of dealing with a middleman by contacting the insurance company directly.
  • Provides a cheaper term life option than its rivals’ pricey whole-life policies only
    coverage amounts as high as $100,000 (depending on age), more than twice that of most other insurers
  • No deductibles or waiting periods
  • There is no requirement for you to undergo a medical screening.

Features in addition:

  • Relatively low rates for the term and whole burial insurance options
  • Whole life coverage up to $50,000
  • Policies start at $5,000 in coverage
  • Coverage available for adults and children

2. Colonial Penn Offers the Best Value in Burial Insurance for Younger Applicants.

There aren’t many companies that offer funeral insurance at such low rates as Colonial Penn. A flat rate policy can be had for as little as $10 a month, no matter your age.

Because real coverage amounts decrease with age, Colonial Penn is a great deal for those who are getting close to the age of 50 required for eligibility. Benefits decrease beyond retirement age.

People looking for burial insurance have several options, but Colonial Penn stands out due to its many convenient extras.

  • Guaranteed-issue coverage — you can’t be turned down for health reasons
  • No medical exam required
  • Free online quotes without providing lots of personal information
  • Limited coverage for the first two years, then full coverage after that
  • Apply up to age 85 for lifelong coverage

3. Aetna Offers the Best Burial Insurance for Seniors.

The highest maximum application age of any firm on this list—89—is offered by Aetna, making it the top burial insurance provider for seniors. Most rival services have a cap of 80 or, less frequently, 85.

The three main death benefit options provided by Aetna are level, graded, and modified. Level insurance is offered to the oldest applicants and always offers instant coverage, which is good news if your health is a concern.

Features in addition:

  • Level protection with age-based death benefits up to $35,000
  • Applicants up to the age of 85 are eligible for coverage of $15,000
  • Candidates up to the age of 89 receive $10,000 in coverage.
  • Available on all policy types is accidental death coverage.
  • Although there are two-year waiting periods for full payments under modified and graded policies, accidental death benefits are always accessible.

4. Transamerica is Ideal for Children

Transamerica is one of the few funeral insurance providers that provide the same policy for persons of all ages, from zero to the maximum application age of 85.

Death benefit policies are available for children as young as 15 days old, with maximum benefits of $50,000. No matter how long you live, your set premiums will keep you with the same amount of coverage. Considering Transamerica is a good idea if you’re worried about how a tragic event, like the loss of a kid, could affect your family’s finances.

Features in addition:

  • Get up to $25,000 in protection even after age 85, which is more than most insurers offer.
  • You can choose a premium payment schedule that lasts the rest of your life, or one that lasts just ten years, with the latter option meaning you won’t have to pay any more for your insurance after that.
  • Coverage applications might start at just $1,000.
  • A physical is not necessary.

5. Mutual of Omaha is Best for No Medical Examination.

To get a burial insurance policy, a medical exam is typically not required, although there are other options besides Mutual of Omaha. As a plus, there is no exam involved in the underwriting procedure. A few simple questions about who you are will get you started.

The application process for Mutual of Omaha is stress-free because no inquiries are asked concerning your health. That’s because they can’t refuse you coverage based on your health, as this policy is a guaranteed issue.

Features in addition:

  • Up to $25,000 in coverage, depending on age
  • Apply up to age 85
  • Level benefits and premiums on all policies

6. Foresters Financial Offers the Best Policy Add-Ons for Riders.

The rates for the ultimate expense insurance offered by Foresters Financial are fixed for the policyholder’s lifetime. Foresters stand apart from the competition since every final expense coverage comes with a variety of extras at no extra cost:

  • In the event of a terminal disease, the insured can collect a portion of their death benefit early, known as an accelerated death benefit.
  • Rider for accidental death applies to deaths that occur on common carriers like airplanes, buses, and trains.
  • Coverage for emergency medical care, such as ambulance rides, for your whole family in the event of a natural disaster is possible with a health benefit rider.

Features in addition:

  • Policies range up to $35,000
  • Apply up to age 85
  • No medical exam required

7. Fidelity Life is the Best for Immediate Coverage.

When it comes to burial insurance, no one offers more options than Fidelity Life. Since the typical industry waiting period for full benefits is two years, applicants who are unsure of how long they have to live may benefit greatly from these items.

Features in addition:

  • Policies range up to $35,000
  • Apply up to age 85
  • No medical exam is required, but you may pay less if you’re in good health

8. The AAA Life Insurance Company is the Best for Bundle Discounts.

You don’t have to be a current AAA member to get burial insurance coverage from AAA Life Insurance Company, which caters to members of the auto club. If you bundle your life insurance with other insurance products sold by AAA, such as vehicle insurance, the additional $60 annual charge may be reduced or eliminated.

Features in addition:

  • No health questions or medical exam
  • Apply up to age 85
  • Qualify for up to $25,000 in coverage
  • Stop paying premiums at age 100 without losing coverage
  • Automatic accidental death rider doubles your death benefit if you die in a qualifying accident

The Selection Process for the Best Burial Insurance Providers

Several factors were used in our selection of the finest providers of insurance to cover final expenses. These included minimum application age, availability of different policy types, maximum coverage amounts, and the need for a medical test. Although there is no one deciding factor, we do give preference to businesses that excel across a wide range of indicators.

Age Range

Older persons who never bought life insurance or had their term life insurance policies lapse are the primary target audience for burial insurance coverage. It’s normal for people to wait until they’re well into retirement to start thinking about funeral insurance; if they’re healthy, they could have many years left.

To balance the scales, however, we favor burial insurance providers who accept customers over a broad age range. To illustrate the importance of the higher end of this range, consider that many people don’t apply for burial insurance until they’ve depleted their retirement assets in their 70s or 80s. 

The difference between leaving a significant financial burden on a spouse or children and having everything paid for by a $25,000 policy is substantial.

Types of Policy

Whole life insurance policies are the most common type of burial insurance because of their long duration and cash value accumulation. Companies that provide less expensive alternatives to last expense insurance for those who don’t require a cash value component have our full support.

Amounts of Coverage

Since the purpose of burial insurance is not to replace the policyholder’s income for many years or to pay off large obligations, the death benefits are often limited.

In spite of this, the precise levels of protection offered by different companies vary widely.  While some insurers cap coverage at $25,000 regardless of age, others give as much as $50,000 or $100,000 to younger clients. That’s important if you want your loved ones to be provided for after your passing.

Requirements for Underwriting

Guaranteed-issue status is the primary concern when deciding on funeral insurance. The term “guaranteed issue” refers to a policy where the insurance provider cannot refuse coverage on the basis of a person’s health. Even if you’re close to death, you might be able to get insurance.

All guaranteed-issue insurance is automatically issued without the need for a pre-existing condition evaluation. If you are worried about the results of a medical exam for burial insurance, you should know that there are a lot of alternative policies out there that don’t mandate one. Given similar policies, we tend to favor those that minimize the underwriting process.

Riders & Add-Ons

Burial insurance is taken out for the sole reason of covering the last expenses, such as those associated with a person’s funeral and burial.

However, the greatest burial insurance policies come with perks that increase their worth, some of which are extra but are included in the base price. Accidental death and dismemberment coverage is a popular rider that often doubles the death payout in the event of a covered accident.

Awaiting Periods

The fastest-paying burial insurance policies provide benefits right away. If you are accepted for a policy on Monday but die on Thursday, the insurance company won’t bat an eye.

Many alternative funeral insurance providers are more stringent in their coverage requirements. Their policies feature waiting periods of up to two years, leaving your heirs with nothing if you pass away sooner. Obviously, we favor plans with no waiting period, but it doesn’t mean a solid policy won’t have one.

Company Standing & Financial Stability

At the end of the day, an insurance company’s viability depends on its financial stability and its reputation. What good is a life insurance policy if the insurer cannot afford to pay the benefits owed to your family in the event of your death?

Experts in the insurance industry have given all the companies on this list high marks, and independent rating agencies like A.M. Best have also given them high marks for their financial strength. Best.

How to Pick the Best Funeral Insurance Provider

You should take a step back and evaluate your individual circumstances and goals if you are still unsure as to which policy is best for you. Younger people typically have greater opportunities available to them. 

Possible better options include a more conventional term life policy or a smaller-dollar whole-life policy rather than a burial insurance plan. You should think about the following if you’re decided on purchasing funeral and burial coverage:

  • What sort of protection do you anticipate needing
  • How long you think you’ll live is relevant if you’re thinking about getting a modified or graded death benefit that doesn’t start paying out until two years after you die.
  • To what extent do you anticipate the following costs to be incurred by your survivors?
  • Determine whether or not you want your heirs to have any money left over after you’ve paid off your debts.
  • If you have health problems and need to be assured of being accepted for insurance,
  • Are there any optional extras, or “riders,” that you’d like to have on your policy?

The next time you’re shopping for insurance, you’ll be better able to narrow down your options and pick the plan that’s right for you.

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