How Much Does Burial Insurance Cost?

Burial insurance, also called final expense insurance, is a small whole life policy meant to cover funeral costs. The question most people ask first is what it costs per month. The honest answer is that it depends on a few things you can see and control.

What sets the price

• Your age. The older you are when you apply, the higher the monthly premium. Locking in a policy earlier keeps it lower for life.
• Coverage amount. A $5,000 policy costs far less than a $20,000 policy. Most families choose enough to cover the funeral and a few final bills.
• Your health. Policies with health questions usually cost less than guaranteed acceptance policies with none.
• Plan type. Level benefit plans pay in full from day one. Graded benefit plans cost more per dollar of coverage and pay less if death occurs in the first two years.
• Tobacco use and sex. Smokers pay more, and rates can differ between men and women.
• The carrier. Two companies can quote very different prices for the same person.

Rough monthly ranges

Prices vary by company, so treat these as ballparks, not quotes. For a $10,000 policy with level benefits for a non-tobacco applicant, published sample rates run roughly $33 to $54 a month at ages 60 to 65, $53 to $70 at 70, $71 to $97 at 75, and $98 to $135 at 80, with men paying more than women. Guaranteed acceptance plans typically cost 30 to 60 percent more for the same coverage. The only way to know your price is to get a quote.

How to keep it affordable

• Choose a coverage amount that matches the funeral you want, not more.
• Apply sooner rather than later, since each year of age raises the premium.
• Answer the health questions honestly. If you qualify for a level benefit plan, it usually costs less than a guaranteed plan.
• Compare several carriers instead of taking one quote. An independent agent can do this in one call.
• Pick a premium you can keep paying. A policy that lapses pays nothing.

Is it worth the cost?

That depends on your family’s situation. For many people, a funeral costing $8,000 or more is the reason to have coverage. Read is burial insurance worth it? and how much does a funeral cost? to compare. If health is a concern, see burial insurance with no waiting period and options for seniors over 80.

Get a quote

Amy Plunkett is an independent insurance agent at Plunkett Insurance Services in Castor, Louisiana. She can compare burial and final expense policies from more than 20 carriers to find the best coverage for your health, including options that pay in full from day one. Contact Amy to see what you qualify for.