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Understanding Your Funeral Insurance Options

Jun 22, 2023 | Burial Insurance

Understanding Your Funeral Insurance Options

Funeral insurance, alternatively known as burial insurance or final expense insurance, can serve as a valuable tool that empowers seniors and their families to plan ahead for their own funeral arrangements. These insurance policies offer a hassle-free application process without requiring a medical exam. Typically, they provide a death benefit that can sufficiently cover costs associated with memorial services, headstones, urns, cremations, and other common end-of-life expenses.

It’s important to note that funeral insurance plans share similarities with life insurance policies, but they are not exactly the same. Life insurance plans generally offer significantly higher death benefits compared to funeral insurance plans. Additionally, life insurance policies often necessitate a comprehensive medical examination during the application stage.

Funeral insurance plans are specifically designed to be easily accessible options, particularly for seniors whose present health conditions might hinder them from qualifying for traditional life insurance plans. If you believe that a final expense insurance policy could benefit you, it’s worth delving deeper into your options. Selecting coverage now can help you prepare for unforeseen circumstances, granting you and your loved ones peace of mind as you approach the later stages of life.

Understanding Funeral Insurance with Empathy for Seniors

While life insurance is the more commonly recognized method for covering funeral expenses, there may be instances where traditional life coverage is not attainable for seniors. However, there’s no need to worry. Funeral insurance options exist to provide the coverage you require in such situations.

Funeral insurance serves as a specialized form of life insurance specifically tailored to address final expenses. These policies function similarly to whole life insurance, but they are available in smaller amounts. A typical funeral insurance policy generally offers death benefits ranging from $5,000 to $25,000.

To retain the benefits, you’ll be required to pay monthly premiums to the insurer. As long as you maintain your policy, your chosen beneficiaries will receive the death benefit upon your passing. They can utilize the funds as they see fit, although most individuals use funeral insurance to cover costs associated with cremations, burials, and memorial services.

Determining the Need for Funeral Insurance with Sensitivity towards Seniors

If you anticipate the possibility of your passing in the near future and lack the financial means to cover your own burial or cremation expenses, funeral insurance can provide a necessary safety net. The death benefits from funeral insurance can also be allocated towards other end-of-life costs, including outstanding medical bills. Depending on your specific circumstances, there are numerous reasons to consider purchasing funeral insurance.

It’s important to bear in mind that funeral insurance death benefits are not typically substantial enough to cover larger financial obligations, such as housing, college tuition, or income replacement.

How Does Funeral Insurance Work for Seniors?

Funeral insurance operates similarly to whole life insurance, with a focus on providing peace of mind for seniors. Unlike traditional life insurance policies, funeral insurance policies do not require a medical exam, making them accessible to seniors. The cost of funeral insurance is primarily determined by age and gender, although some medical questions may be asked during the application process.

It’s important to note that once you secure a funeral insurance policy, the rates remain fixed, ensuring financial stability. Moreover, your coverage is guaranteed, meaning the death benefit will never decrease over time. These policies also provide lifelong coverage, as they do not expire.

Types Of Funeral Insurance Options for Seniors

Similar to traditional life insurance plans, there are different types of funeral insurance plans available to seniors in the United States. The specific plan you choose can influence the rates you are offered. Let’s explore these options in more detail:


When seniors qualify for the preferred plan offered by an insurer, they are eligible for the lowest rates available. This plan comes with the benefit of immediate coverage, without any waiting period. To qualify for the level/preferred plan, applicants typically need to answer “no” to all health-related questions in the application, except for the tobacco question in some cases. This plan is ideal for seniors who wish to maximize their savings and secure coverage right away.


The standard funeral insurance plan offers immediate coverage without a waiting period, albeit at a higher price compared to the level/preferred plans. It caters to seniors who have some health issues that require them to answer “yes” to certain health questions in the application. The eligibility for standard plans depends on the severity of health conditions, and in some cases, seniors with poorer health may receive lower death benefits compared to healthier applicants.


Partial coverage, also known as graded coverage, pays out a portion of the listed death benefit if the insured passes away within the first two years of coverage. Typically, the payout ranges from 30 to 40 percent in the first year and 50 to 70 percent in the second year. After the two-year waiting period, the entire death benefit becomes active. Partial funeral insurance plans are suitable for seniors who have confidence in living for a few more years, and they may be one of the limited options for those with poor health. While these plans are generally less expensive than standard plans, they don’t offer the extremely low rates available with preferred plans.


For seniors diagnosed with severe recent health conditions, modified coverage may be the best choice. These plans tend to be the most expensive and often come with a waiting period of 2 to 3 years, although the waiting period duration can vary across insurers. Modified plans are designed for individuals facing significant medical issues, as they may not be accepted for standard, level, or partial plans. Seniors in such situations may find modified coverage as one of their few remaining options for life insurance.

Guaranteed Issue

Guaranteed issue funeral insurance, as the name suggests, provides coverage regardless of the individual’s health condition. These plans do not require applicants to answer any health or lifestyle questions, ensuring guaranteed approval. However, guaranteed issue plans typically have higher rates compared to other life insurance options and come with a waiting period of 2 to 3 years. It’s important to consider that insurers charge more for these plans because they have no knowledge of the applicant’s health status, resulting in increased risk. This higher cost reflects the insurers’ need to provide coverage to everyone who applies, without any information about potential payouts.

Discover the Ideal Funeral Insurance

When it comes to securing comprehensive end-of-life coverage, exploring multiple plans is the most effective approach. By comparing quotes or offers from various funeral insurance providers, you’ll have the opportunity to identify the plan that best suits your unique requirements. You can also conduct online research to determine if the offered plans align with your specific needs.

However, it’s important to note that only a licensed insurance agent can accurately assess the level of funeral insurance coverage you qualify for. They can provide you with precise information about the monthly costs you can expect. With their expert guidance, you’ll be able to conveniently compare policies from numerous reputable companies all at once.

Rest assured, these insurance agents are genuinely committed to assisting you in finding the most suitable coverage available. Furthermore, most insurance agents offer their services free of charge, ensuring their utmost dedication to your satisfaction. This is exactly what we strive for! Our primary goal is to help you secure the coverage you require and deserve, so don’t hesitate to give us a call today to learn more about your burial insurance options.

How Final Expense Insurance is Offered

Finding final expense insurance on your own can be challenging. More than 90% of all final expense insurance companies do not directly sell their products to consumers. Instead, they rely on insurance agencies to facilitate transactions. While the insurer ensures top-notch service, the agent handles all the marketing. This arrangement enables insurance customers to access high-quality coverage at affordable prices. The savings insurance companies obtain from marketing costs can then be passed on to consumers.

Although this may initially seem perplexing, it becomes clearer when considering the vast number of life insurance companies in the U.S. As of a 2018 report, there were 773 life insurance companies operating in the country, with less than 1% of them advertising through mass media. Consequently, it is unlikely that you are familiar with many of these companies.

Considering this, it’s worth acknowledging that the best coverage may be offered by a company you haven’t heard of. Just because a company has limited advertising doesn’t diminish its quality or financial stability. They can be equally reputable and financially secure without extensive marketing efforts. Independent insurance agents take charge of their marketing, making it convenient for individuals like you to discover their products.

Selecting a Reliable Insurer

Relying on an unreliable insurance company for coverage is not ideal. If you choose to work with a financially unstable company, there is a risk that they might go out of business, rendering your policy invalid. Moreover, dealing with an untrustworthy company increases the likelihood of encountering difficulties when filing a claim. We strongly recommend partnering with insurance companies that boast a strong rating, preferably a B or higher.

Additionally, consider the waiting period associated with your chosen plan. Opting for a plan with no waiting period is always advantageous as it allows your beneficiaries to access the full death benefit in the event of your untimely passing. However, in certain cases, you may not have a choice in this matter. If you have health issues that require you to answer “yes” to some health questions on the application, you might only qualify for partial coverage. These plans often have extended waiting periods, meaning you won’t be able to activate your benefits for up to 3 years.

Acquire Funeral Insurance

We are here to assist you in finding funeral insurance that perfectly matches your needs. Our dedicated team will help you determine the level of coverage you qualify for and guide you through the process of comparing quotes to select the most suitable plan.

To connect with a licensed insurance agent, please don’t hesitate to call us at (800) 398-9821.

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