The Requirements For Buying Burial Insurance For Your Parents

Buying life insurance for a parent is allowed by most final expense insurance companies. The requirements are generally:

  • They agree to the policy being issued.
  • They answer the health questions unless you’re applying for a guaranteed acceptance policy (no health questions).
  • They sign the application (there are various ways to sign).

It’s important to note that those requirements cannot be waived under any circumstance.

If your mom or dad is unwilling to participate in the application process, there is no way to insure them. Check into a pre-paid burial directly with a funeral home if they won’t let you buy life insurance coverage for them.

Power of attorney does not allow you to buy final expense life insurance for your parents. The insurance companies dictate their own rules. They all require your parent’s consent.

Buying life insurance for someone else generally requires an “insurable interest.” Insurable interest is when you, the beneficiary, would endure a financial setback due to the insured’s death (your parents). Fortunately, your parent’s final expenses will satisfy the insurable interest requirement.

So when buying final expense insurance for your parents, no insurance company will ask you why you want the policy or require you to provide documents proving you have insurable interest.


It’s best if you are the owner

Ideally, you should be the owner, payor, and beneficiary (unless you want someone else to be). That way, you’re the only one who can inquire about the policy or make changes to it. Also, if you own the policy, the cash value that accrues will not interfere with their Medicaid eligibility.

With a life insurance policy, there are generally four parties:

  • Insured: Your parents
  • Owner: The person in control of the policy and owns any cash value that has accumulated
  • Beneficiaries: To whom the death benefit is paid upon the passing of the insured
  • Payor: Whoever pays the premiums

Ownership establishment can be done in the application or transferred after the policy has been issued.

Be very wary of buying funeral insurance online because online applications are not meant to be submitted by anyone other than the insured.

If you use those online forms from companies such as AAA or Colonial Penn, the insured (your parent) is automatically the owner. You’d be paying for a policy and have no control over it. To make any inquiries or changes to the policy (even to cancel it), the insurance company would only speak to your parent, and only they could execute changes.


How Much Does Final Expense Insurance For A Parent Cost?

The cost of final expense insurance depends on your exact age, gender, health, tobacco usage, state of residence, and the amount of coverage you want. Below are some sample monthly prices.

Age & Gender$10,000$25,000
Female age 40$21$47
Male age 40$25$57
Female age 45$23$52
Male age 45$27$63
Female age 50$24$55
Male age 50$31$71
Female age 55$28$64
Male age 55$36$84
Female age 60$33$76
Male age 60$43$103
Female age 65$41$97
Male age 65$54$130
Female age 70$53$127
Male age 70$70$169
Female age 75$71$172
Male age 75$97$238
Female age 80$98$241
Male age 80$135$332
Female age 85$136$335
Male age 85$178$440
Female age 89$260$651
Male age 89$357$888
Source for monthly prices: Choice Mutual quote calculator. Rates are calculated at a non-tobacco rating, rounded to the nearest dollar, and are valid as of 07/22/2024..


Funeral Insurance For Parents Over 80

Buying funeral insurance for parents over 80 isn’t any different than for other ages. Granted, the options at this age range are limited, but it can still be done (even after 85).

Here are some of the best companies that offer life insurance for seniors over 80. It’s crucial to remember that these providers may only be available in some states. For instance, these companies (except Transamerica) don’t offer coverage in New York.

Insurance CompanyCoverage Options Above 70Max Age For New ApplicantsWhen Policy
Can Pay Out
Mutual of Omaha company logo$2,000-$50,00085No waiting period
Transamerica company logo$1,000-$30,000*85No waiting period
Aetna company logo$2,000-$30,00089No waiting period
american home life company logo$2,500-$30,00089No waiting period
Security National Life company logo$2,500-$15,000*90No waiting period
Guarantee Trust Life company logo$2,000-$20,000*90Refund of premiums in first 12 months, 50% payout in 2nd year, then full benefits after 2 years
*The maximum coverage varies by age


How To Find The Best Burial Policy For Parents

Whether you want life insurance for parents or a grandparent, it’s vitally important to compare various policies side by side to find the best burial insurance plan. That’s because each company’s policies vary significantly in price, underwriting, and waiting periods.

The best thing you can do is work with an independent agency like Choice Mutual. Independent agencies represent multiple insurance providers rather than just one. An agency’s job is to analyze each company to find the best life insurance option without favoring one provider or another.

In contrast, captive insurance companies do not allow their insurance agents to represent other providers. For example, State Farm is a captive life insurance company. Their agents can only offer State Farm. If you don’t like State Farm’s offer, the agent cannot recommend another insurer that might give you a better deal.

Remember, when you buy through a broker like Choice Mutual, there is never a cost, fee, or upcharge to the insurance. An independent agency will answer all your questions and find you the best, least expensive policy possible.

If you’re trying to purchase burial insurance for a parent, call us at 1-800-644-2926. We have thousands of positive reviews like the ones below.

We partner with over 15 different insurance companies. We’ll find you the best price possible and guide you through the process.


How Much Does A Funeral Cost?

A bar chart comparing the cost of various burial and cremation types.

Knowing the cost of a funeral is critical when determining how much coverage you should buy for your mom or dad.

According to the NFDA, the average funeral (with a burial, viewing, and vault) costs about $9,995. Cremation is less expensive, but not a significant amount. The average cost of cremation is $6,280.

You can save considerable money if you opt for direct burial or direct cremation. According to Funeralocity, a direct funeral has no memorial services of any kind. The average direct burial costs $5,128, and the average direct cremation costs $2,196.

Shopping around saves you a lot of money on burial expenses. For example, call multiple cemeteries to see which has the least expensive burial plot. Also, you can buy caskets online from companies like Costco. Just know that you don’t have to accept what the funeral home initially offers you.


How Does Final Expense Insurance Work?

Final expense insurance for seniors is a small whole life insurance policy meant to pay for all funeral expenses. It provides immediate peace of mind, knowing that family members won’t be stuck with the financial burden of unpaid end-of-life costs. Upon your parent’s death, the insurance company will give a tax-free check directly to you or your loved ones so they can pay for their final expenses.

Technically, the payout money can be used for anything, such as funeral services, medical bills, credit card or other outstanding debts, or anything else. Any money left over stays with the beneficiary(s).

The monthly premiums are affordable, medical exams aren’t required, and the underwriting is very lenient so that people with health issues still qualify. Most companies will offer coverage from $2,000-$50,000 and are available from ages 18-90.

Some burial policies have health questions, and some do not. Both options have their pros and cons, so it’s essential to understand the differences.

First, plans with health questions generally cost less and have no waiting period (if you’re approved). On the other hand, plans without health questions (aka guaranteed acceptance life insurance) will not deny you because of pre-existing health conditions.

The guaranteed approval provision does have drawbacks. It is more expensive since the insurer takes on much risk knowing nothing about your health. Also, it has a two-year waiting period. The insurer will only refund your premiums if you die during the waiting period for any non-accidental death.

There is no such thing as guaranteed acceptance life insurance with no waiting period. There will always be a waiting period if there are no health questions.

The payments on a burial insurance policy will never increase, the death benefit will never decrease, and the policy will never terminate due to age. Additionally, the policy builds cash value that the policy owner can withdraw and use as they see fit.

It’s important to remember that you will also hear “burial insurance,” commonly referred to as “final expense insurance” or “funeral insurance.” All three of these terms have the same meaning.


Frequently Asked Questions

Final expense whole life insurance is the best type of policy to buy if you need coverage to pay for your parent’s funeral costs. It’s permanent life insurance that lasts forever and has a fixed monthly price. Buying a term life insurance policy is not advisable because they generally terminate around age 80. While term insurance products are cheaper, most seniors outlive them, leaving you with no insurance to cover their burial expenses. A universal life insurance plan is also one to consider, given that it is a type of permanent life insurance. The primary difference between whole and universal life is that a UL policy has payment flexibility and costs slightly less. However, universal life, like term insurance, is risky since the payments often increase after age 75, making it unaffordable and thus losing coverage.

If you want to purchase life insurance to pay for your mom or dad’s funeral bills, first determine what type of funeral they would prefer. Then estimate the cost of their desired funeral to calculate how much coverage you’ll need. The NFDA’s most recent report showed that the average burial with a vault, viewing, and service costs $9,995. Alternatively, a cremation service with viewing costs $6,280. You can significantly lower these costs by opting for direct burial or direct cremation. A direct funeral is when there are no services. The funeral provider immediately buries or cremates the body with no viewing or processions of any kind. The median cost of a direct burial is $5,128, and only $2,196 for a direct cremation.

Buying burial insurance for a family member (or any adult for that matter) without their involvement and consent is not legally possible. Taking out a policy on them without them knowing would be insurance fraud. In all circumstances, the insurance companies require the insured (your parents) to sign the application and agree that the policy will be issued. That’s true even if you have POA over them.

Choice Mutual often cites third-party websites to provide context and verification for specific claims made in our work. We only link to authoritative websites that provide accurate information. You can learn more about our editorial standards, which guide our mission of delivering factual and impartial content.

  1. Insurable interest.
  2. Power of attorney.
  3. Trustpilot.
  4. NFDA.
  5. Funeralocity.
  6. recent report.