What is funeral insurance? How does it differ from normal life insurance?
This article answers those questions and offers you a complete list of the best funeral insurance plans.
Average funeral costs have skyrocketed over the past few decades. For a typical funeral, expect to shovel out about $ 10,000 depending on where you live and your burial preferences (pun intended).
There are countless stories of families who inherited thousands of dollars in debt after their loved one dies, but you don’t have to be one of those families.
Caring for your family after you’re in the ground might be easier than you think.
Top 10 Best Funeral Insurance Companies This Year
- American citizen
- Mutual from Omaha
- United Home Life
- Royal neighbors
While Gerber is known for its baby products, it’s also a good place to check out if you are purchasing funeral insurance.
Over the years, their reputation as a company has made them one of the most popular funeral insurance options.
Gerber offers guaranteed emission plans, which means you won’t get turned down regardless of your health or pre-existing conditions. If you are between 50 and 80 years old, you can purchase one of these plans.
Gerber is usually one of the cheapest funeral insurance companies you will find.
They’re not perfect, but they are some of the cheapest plans you can find, which makes it easy to add them to our list of top companies.
Gerber sells you guaranteed coverage for values between $ 5,000 and $ 25,000. This is one of the major drawbacks of Gerber funeral insurance, the small face value.
There are many other companies that offer larger plans. However, if you don’t need such a large policy, Gerber can be an excellent option.
You may not have heard of Foresters Financial, but it should be one of the first places to look when you buy funeral insurance.
They have three different funeral insurance plans to choose from and some excellent drivers to add to their plans.
A unique benefit they offer their policyholders is they are entitled to free basic will and comfort from an attorney. This is a benefit you won’t find with any other insurance company.
Foresters have level and tiered performance plans. The tiered benefit plans are offered to applicants with serious health complications.
These plans have a “waiting period” for the first two years. If you die, your beneficiary will not receive the full payout from the plan.
Instead, your family would get about 30% of the plan the first year and 70% the second year. After the first two years, funeral insurance works like any other traditional plan.
Foresters has plans ranging from $ 2,000 to $ 35,000 depending on your age. You also have accidental death and accelerated live drivers that you can add to your policy for extra coverage.
If you’re looking to get more than basic funeral insurance, Forester is a great place to start your search.
3. American National
American National has several advantages, but the most notable is its lifetime funeral insurance, which you can get up to $ 50,000 worth.
That is twice what many companies offer through their plans. They also have some tiered retirement plans with coverage of up to $ 25,000.
Since American nationals sell funeral plans for life, the policy will create cash value.
The longer you keep the policy, the more value will be built in the plan. You can use this to take out a loan if you need a loan in the future.
An added benefit of American National is that every policy over $ 25,000 comes with a terminal illness driver.
These drivers can be a lifesaver if you’ve ever been diagnosed with a serious illness and need early access to your money.
Assurity is another company that should always be on the top funeral home list.
They have excellent drawing standards. With the certainty you receive a level benefit policy if other companies request the purchase of a tiered benefit policy.
When you apply for funeral insurance, most businesses will be looking for major health issues for two years in the past, but security will only be a year ago.
Depending on your situation, this can make a huge difference. For example, if you had a heart attack 16 months ago, other companies give you tiered benefit, but Assurity gives you their standard plan.
Not only are they more liberal with their underwriting, but they also have some of the best pricing on their plans.
If you’re a candidate with serious health complications, you can get much cheaper rates with Assurity than with any other company.
Transamerica has many of the same perks as the other companies on this list, such as great underwriting and good premium rates, but they also have an excellent plan option, their Preferred Immediate solution policy.
The Preferred Instant Solutions policy has no waiting time, and the rates on this plan will be lower than other companies that offer you coverage without the tiered benefit.
Transamerica created this plan to provide high risk applicants with the funeral insurance they need without the dreaded waiting time most businesses need.
Since this plan specializes in people with serious health complications, their goal is to offer better prices.
Sagicor has an excellent A rating from A.M. Best, and they continue to be one of the best funeral insurance options out there.
One of the unique advantages of Sagicor is that they have three different tariff classes for their plans. Use preferred, standard and table rated.
Most funeral directors only have one rating class. With more rating classes, you have a much better chance of getting lower insurance premiums, which means you have more money in your pocket.
Sagicor is offering a No Lapse Universal Life that you can purchase up to $ 25,000. As you can see from the name of the plan, these policies never expire so you don’t have to worry about losing coverage.
Sagicor includes an accelerated benefit driver that covers any chronic illness for free.
As long as you are between 18 and 65 years old, you can get one of these plans as a simplified problem, which means they don’t ask extensive questions about your health.
If you are between 66 and 85 years of age, you must go through medical underwriting.
7. Mutual from Omaha
Mutual of Omaha is one of the most popular funeral insurance options on our list.
You are one of the most famous companies. They have years of experience providing quality life insurance to millions of people across the country.
While they have been selling traditional life insurance plans for years, they also have great funeral insurance options.
These plans are available to anyone between the ages of 45 and 85 and have life insurance plans that you can get for insurance up to $ 40,000 worth.
In addition to affordable funeral insurance options, they also have an accelerated death tab that includes all of their plans.
8. United Home Life
United Home Life is one of the lesser known companies, but it has a great funeral insurance option that works well for many of our clients.
United Home Life’s Express Issue Premier policy is great for those with serious health complications like diabetes or Parkinson’s.
Most companies will evaluate your benefits if you have been diagnosed with Parkinson’s, but United will not. They will still give you their traditional plan.
If you’re looking to get one of the largest funeral insurance policies available, you’ve come to the right place.
Depending on your age, you can get funeral insurance up to $ 100,000 through United. As long as you are between 20 and 80 years old, you will qualify for one of their plans, and they are usually one of the most affordable companies you can find.
9. Royal neighbors
You may not have heard of Royal Neighbors of America, but they are a popular choice for funeral insurance. Royal Neighbors are not new to the insurance market.
They have been around for more than 120 years, which means they probably have nowhere to go.
There are two different funeral insurance plans, the simplified edition Whole Life and the Graded Death Benefit Whole Life.
Overall, United Home Life is a reputable company with great prices and excellent customer service.
You have four different funeral insurance plans to choose from, but some of them aren’t even worth the time it would take to look at them. The only plan we’ll be focusing on is the Express Issue Premier Policy.
Their plans are available to anyone between the ages of 65 and 85. They are life plans and the premiums are not going to rise.
One perk you get with Royal Neighbors is the accelerated living driver.
This driver allows you to receive part of your insurance benefit while you are still alive. Royal Neighbors can get you up to 75% of their face value while you are still alive.
Application process for Royal Neighbors. When you apply, you can make the decision very quickly.
AIG is one of the most famous insurance companies, but many customers are unaware of their funeral insurance plans.
AIG has an interesting history. They were founded in China in 1919. They didn’t make it to America until a few years later in 1926.
AIG has many life insurance options, and that includes funeral insurance. You can purchase funeral insurance through AIG either for the full term or for life.
Their plans range from $ 5,000 to $ 25,000. All funeral plans are guaranteed to be issued. As long as you are between 50 and 85 years old, you will not be rejected.
AIG adds some drivers with their funeral insurances for free. They add both incurable and chronic disease drivers.
The Terminal Illness Driver pays 50% of face value if you are diagnosed with an illness that your doctor believes will “lead to death within 24 months of the date of certification”.
The driver with chronic illness can be deployed if the policyholder can no longer perform two of the six activities of daily living. This can be bathing, getting dressed, eating and much more.
In this case, the policyholder can get the premiums back.
Why take out funeral insurance?
One of the most common questions about these policies is, “What does funeral insurance do?”
According to LIMRA’s latest Insurance Barometer study, around 60% of Americans have life insurance. The Insurance Information Institute cited this study and also found that around half of adults searched for information about life insurance in 2018.
Nobody wants to burden loved ones with thousands of dollars in debt after they die. Between flowers, a coffin, grave, transportation, taxes, tombstone, and more, the cost of a funeral can quickly add up to a massive cost that can be difficult to pay, especially for a grieving family struggling with the loss got from someone near her.
Funeral insurance gives your family the means they need to cover the cost of your final costs without adding to the stress of the already stressful time.
What is funeral insurance?
There are many misconceptions about funeral insurance and how it works, but we’re here to clear them all up.
Put simply, funeral insurance is a tool that your loved ones can use to pay for all of your final expenses after your death.
Although often referred to as a separate product, funeral insurance is basically very small life insurance that is used to cover all costs remaining after a person dies.
These expenses can be funeral bills, hospital bills, or credit card bills.
Funeral life insurance (sometimes called “funeral insurance”) is an excellent and affordable option to provide for your family after your death, although many Americans see these policies as a waste of money.
Funeral insurance is sold by dozens of major life insurance companies in the United States.
They often have lower coverage limits, usually around $ 10,000, but they can range from a small policy over $ 5,000 to a policy over $ 20,000.
Funeral plans are easy to use and often do not require a medical examination.
Almost every insurance company has a minimum age limit that you must be older to get funeral insurance. Usually this is around 50 years of age (some companies have a minimum age limit of 40 years).
Likewise, every insurance company has a maximum age at which they can sell you a policy. Usually you cannot be older than 80 or 85 years.
If you have a policy, you can keep it up until you are 100 (hopefully we will all get to that point).
Funeral insurance is often confused with a prepaid funeral, but there are some key differences between the two plans.
Prepaid funerals are funded directly through the funeral home of your choice, while funeral insurance is purchased through an insurance agency.
With prepayment for a funeral, you can only use that particular funeral home. Funeral guidelines allow you to use the location that works best.
The beneficiary of the funeral insurance plan can use the payout to cover any necessary expenses, but a prepaid funeral can overpay the cost of the funeral and related costs.
Many people opt for a funeral policy over a prepaid funeral just in case they forgot to spend.
Funeral Life Insurance Benefits
There are many advantages to taking out funeral insurance. One of those where you can’t put a “peace of mind” price on.
A policy gives you and your loved ones a sense of peace knowing that if something happened to you, they wouldn’t be forced to find money to give you the ultimate respect you deserve.
Funeral insurance is an excellent option for any applicant who cannot be accepted for traditional life insurance.
Many people in poor health are not eligible for life insurance, and even those who can be accepted have to pay outrageous monthly premiums that can quickly drain a bank account.
Instead of having to pay those ridiculous monthly payments, you can choose to pay for the lower cost of funeral insurance.
Funeral insurance is also a great alternative for the elderly. Elderly funeral insurance is becoming more popular as life insurance premiums continue to rise.
The older the applicant, the higher the life insurance fees will be, which means older applicants will begin to shift to funeral policies rather than traditionally underwritten life insurance in order to meet their coverage needs without sacrificing their current lifestyle.
Finding Funeral Insurance
Okay, you’ve decided to get funeral insurance. What are you doing now?
The first step is deciding how much you will need for your funeral (I know this isn’t the nicest dinner conversation with your family). Discuss your wishes with your family and loved ones.
Do you want to be buried Cremated? Shot into space? Have you pressed your ashes into a diamond? Bury and grow a tree where you are? Or one of the other unique burial techniques.
Your funeral requests will affect the size of funeral insurance you will need. Now that you have your final desires, you can start estimating the final cost at the end of your life.
Knowing how much coverage you need can help you find the perfect funeral insurance company.
Almost every major insurance company offers funeral insurance.
Every company has different tariffs, coverage levels, and policy restrictions. This means you may have to call several before you can find the perfect solution.
Be sure to check with multiple insurance companies before choosing one, as some companies may have significantly lower rates than others.
You must also ask each company if they have a tiered death benefit duration.
A tiered death benefit is the amount of time you have to wait for the policy to take effect.
Most policies have a graduated death period of one or two years.
Here are the three different types to compare:
- level – Level Life Insurance is a traditional type of insurance coverage. It is effective immediately and the premiums will never rise. Offers the greatest coverage for any type of insurance.
- Graded – Two years waiting period after acceptance. Given to applicants with serious health complications. There is less coverage available than with a traditional plan. Limited underwriting.
- Guaranteed – Effective immediately. Can be bought in hours. A drastically lower protection limit. No underwriting.
For example, if the policy has a two-year graduated death benefit period and something happens to you within the first two years of the policy being accepted, the insurance company will not pay the face value of the plan.
Some companies pay back the premiums paid for the plan, while others pay the premiums plus interest.
You should always consider the graduated death benefit duration before purchasing funeral insurance, as this could affect your family’s financial future if something happens to you.
In order to apply for funeral insurance, you will need a few things. You need:
- A photo I.D.
- Payment options such as cash or bank details
- The beneficiary’s information.
Since you probably won’t need a medical exam, most applications can be made at the office, over the phone, or via email.
The application process only takes one to two hours, depending on the company. Most policies can be accepted within a few days.
How much is it?
One of the most common questions about funeral insurance is “How much does it cost?”
Well the answer depends on several factors.
The first is how big a policy will be. The bigger the policy, the more you will pay.
Your monthly payments also change dramatically depending on your age, gender, general health, and whether or not you use tobacco.
There are also different types of life insurance policies with different premiums.
Two of the main categories are guaranteed expenses while others are simplified expenses. The difference between the two types lies in the application process.
In a guaranteed spending policy, you do NOT need to answer any medical questions. However, if you have a simplified version, you will have to fill out a small medical questionnaire.
For anyone with pre-existing health conditions, Guaranteed Spending Policies are a great option. However, you can expect to pay more for these guidelines than for guidelines with a health assessment.
While each company will have different tariffs based on your situation, we can give you a rough idea of what to expect for a policy.
For a 70-year-old man who neither smokes nor uses tobacco, you can expect to pay around $ 100 to $ 140 each month for a $ 10,000 policy. While the same $ 10,000 policy for a woman smoker aged 75 could cost $ 150 or more each month.
Should I consider a funeral policy?
Now that you have all the information, should you consider getting funeral insurance?
Graduation insurance is not required for every family, but some people can benefit from it. Although each person’s situation is different, funeral insurance plans work best in some cases.
Seniors who have been denied traditional insurance coverage could still be accepted for funeral insurance. These plans provide excellent resources for consumers who are too old or too bad for other types of insurance.
If you can’t get traditional senior life insurance coverage, you can always apply for a guaranteed funeral plan that will give you the coverage you need.
Funeral plans are also great for those with life insurance as they cannot afford them or have no other way to pay for a funeral.
Many people cannot afford the monthly premiums of life insurance, especially consumers without perfect help. Funeral insurance is an affordable alternative that can save you hundreds of dollars every year.
If you’ve saved little money but have a lot of debt, then getting funeral insurance may be your best idea.
Nobody wants to leave their families with their debts after they die. Either of these guidelines can prevent this.
Most policies cost around $ 100 or less each month, which is significantly less than most people with credit card debt.
We know that buying any type of insurance, from finding the best car insurance to finding the best health insurance, can be overwhelming. That’s why we’re here to help you with all of your needs.
Making sure your family has the money to cover all of your funeral expenses is the last gift you give them to show how much you care about their financial well-being.
Funeral insurance is easy to apply for, easy to accept, and affordable for almost every family.
Receiving an offer only takes a few minutes. Don’t wait any longer to give your family the security they need and the security you want.
It won’t be the funniest conversation you have, but do speak to loved ones about your funeral and any final costs they might still face.
Don’t let your family become one of the thousands who inherit debts they cannot pay for.