Burial Insurance For Seniors: 5 Things To Know

Having to decide on financial-related matters after the death of a loved one is never easy. To avoid experiencing this kind of situation, making arrangements for burial insurance ahead of time can make it easier for the family. 

Burial insurance, also called final expense insurance, is a policy created to cover your end-of-life expenses. If you’re having thoughts about getting one, here are five things you should know before buying burial insurance:

1. Funeral Cost

How much does an average funeral cost? According to the National Funeral Directors Association (NFDA), the average cost for a funeral is USD$7,360 but can be as high as USD$8,755, depending on the inclusions. These inclusions may include a vault, which some cemeteries offer. Note that these costs don’t include everything needed in the funeral, such as the burial plot and casket.

Remember to ask questions about possible extra charges, especially when you choose a prepaid burial insurance plan.  Having insurance like this can ensure that you wouldn’t have to worry about the final expenses of a loved one. 

There are two types of funerals: burial and cremation. The funeral with burial roughly costs USD$7,640, including the viewing. The following estimate mentioned came from NFDA’s statistics during the year 2019. Funeral with cremation, on the other hand, costs USD$5,150 also with the viewing. 

2. Burial Insurance Cost

The Insurance Information Institute (III) reported that burial insurance plans could cost around USD$10 a month. That’s the price paid by individuals who bought the plan early in life when they’re still young. Today, it could average around USD$50-USD$100 per month.

The price of burial insurance varies from one person to another. No two insurances are alike. It’ll depend on your current situation and the coverage you want. The only way to know is to request a quotation. If you’re having difficulties choosing a plan, you can buy an insurance policy through an agent. That way, you’ll be able to get information and quotation for the policy you want to get.

3. How Final Expense Insurance Works

Like any other insurance, you have to apply for burial insurance. This policy covers individuals ages 50 to 85 and sometimes individuals of up to 100. Researching and considering this kind of insurance must be part of a senior’s financial planning. Planning to get insurance after retiring can cause you to pay a higher premium. It’s because the older you get, the more expensive it gets. That’s why it’s always better to get this kind of insurance as early as you can.

Some burial insurance policies have a graded death benefit. It means that your beneficiaries won’t get an entire refund when you pass the first year after getting the insurance. With that being said, always check your insurance’s information before purchasing. If you have questions, check the fine print or ask your insurance agent to ensure you’ll be getting the best coverage.

4. Types Of Burial Insurance Premiums

An insurance premium is an amount you pay for your policy. Its cost will depend on the type of insurance you plan to buy. This premium is also a liability because failure to pay the dues on time can cancel the policy. For burial policies, there are four types of premiums.  These are the following:


It’s calculated every year when you renew your insurance policy. The basis of this is your age, sex, and amount of your benefit. Of course, as you get older, it also increases the cost of premium each year.


It’s set using your age, sex, and size of the insurance policy. Your premium rate is the same for life, unlike stepped premium. There won’t be an increase as long as you pay on time. Remember, there will be penalties for late payments, and you don’t want that.


This is a type of premium that sets out an age limit. Once you get to that particular age, you’ll now keep your insurance coverage. One good thing about this is that you’ll no longer pay the premium once the age limit is reached.

Payout guarantee

This premium will guarantee that your listed beneficiaries get paid whichever amount is higher: the original insurance amount or the total amount of premiums you’ve already paid.

Keep in mind that every insurance policy has the same features. But when you go into the finer details, you can see the differences with other policies.

5. Benefits Of Final Expense Insurance

Final expense insurance can help a senior and the senior’s family in so many ways. And the top priority of having a policy is to lessen financial risk in the future. Here are some of the benefits of purchasing burial insurance:

  • There’s no need for a medical exam to avail of this policy.
  • The application is easy, and you can do it through your computer or via phone call at the comfort of your home.
  • Handling the cost of your funeral and viewing services is made easy for the loved ones left behind.
  • You’ll be able to choose the services you want for your funeral plans and burial services.
  • Anyone could avail of burial insurance because it’s always guaranteed for anyone who buys it.

If you weren’t able to get life insurance earlier in life, make up for it and purchase burial insurance as you age. Planning a funeral isn’t easy. But having a policy that will cover the expenses when you pass is a big help for the loved ones you left behind.

Final Thoughts

It may seem morbid to plan your funeral, but it’s better to be ready than sorry. Burial insurance will cover the cost of your funeral service. With that, your loved ones don’t need to think about where they’ll get the money to pay for the service.

Choose among the types of final expense insurance and look for the one that suits you.  And when you’re gone, you can still help your loved ones financially because of the policy you have.

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