Guaranteed Way To Find Cheap Burial Insurance
There are dozens of life insurance companies that offer burial insurance policies, but they are not all created equally, especially in terms of cost.
The guaranteed way to find the cheapest funeral insurance is to consult with an experienced independent final expense insurance agent who represents 10 or more insurers. Independent agents are free to compare various providers side by side so they can isolate which one will offer you the most inexpensive burial policy.
Also, it’s vital to remember that nearly all final expense insurance companies (especially the low-cost ones) only sell their policies through licensed agents. They do not sell them directly to consumers online, through the mail, or via an in-house sales team.
Prioritize plans that ask about your health history
The least expensive final expense policies are ones that ask you questions about your health history. If you opt for a policy that asks no health questions (guaranteed acceptance), it’s a near certainty that it will be more expensive.
Why is this the case?
In short, policies with health questions translate into much lower risk for the insurer. They know you don’t have certain high-risk conditions, such as dementia or a terminal illness, that will cause a significantly lower life expectancy. Because their risk is lower, the cost is also lower. Also, these policies have no waiting period.
On the flip side, guaranteed issue life insurance policies pose a high level of risk for the insurance company since they are insuring your life while not knowing anything about your health history. This higher risk is why the cost is also higher.
Be open to insurance companies that are not household names- they often have the lowest cost burial insurance
According to the American Council of Life Insurers, there were 737 life insurance companies in the USA. Very few of them are name brands like State Farm.
The 95% of life insurers that are not household names are not untrustworthy or financially unstable. They simply have a business model that does not involve mass advertising.
This is important to remember because, when comparing providers to find the cheapest burial policy, you’ll likely encounter companies that are unknown to you.
You should be just as open to them as you would be to name brands like Aflac or the AARP life insurance program.
If you’re only willing to consider name-brand companies, you’re limiting yourself to roughly 5% of the overall market. That will not end well in terms of finding the least expensive policy.
The Most Inexpensive Final Expense Insurance Companies
Below are seven of the best burial insurance companies that offer very affordable final expense policies. More than likely, one of these providers will have the cheapest policy that you can qualify for.
Sample Low Cost Burial Insurance Quotes
Below are some sample prices that are on the lowest end of the cost spectrum for whole life burial policies. You’ll be hard-pressed to find rates lower than these unless you were to opt for a term life policy from a company such as Globe Life. Be sure to compare burial insurance vs term life insurance if you’re considering a term policy to lower your premiums.
Keep in mind that all of the following factors determine the cost of burial insurance:
- Exact age.
- Gender.
- State of residence.
- Health (if applying for a policy with health questions).
- Tobacco or nicotine habits (if any).
- The amount of coverage you select.
How Does Burial Insurance Work?
Final expense insurance for seniors is a type of whole life insurance typically meant to cover all your funeral costs. Ultimately, the policy will pay out a tax-free cash benefit directly to your beneficiaries. They are free to use the money for any expense whatsoever. Also, they can keep any remaining funds.
Being a form of whole life insurance, the price and death benefit will never change, and the coverage will last forever. Additionally, it will accumulate cash value that the policyholder may borrow from as it accrues.
To qualify for a final expense policy, there is no medical exam. In most cases, you just have to answer some health questions, but some have none.
Please note, however, that any policy without health questions will include a two-year waiting period provision. If you die during the waiting period, the insurance company will only refund your premiums plus roughly 10% interest.
Frequently Asked Questions
It’s objectively true that taking a medical exam when applying for life insurance will typically lead to lower prices. For example, instant life insurance policies generally cost more since they are issued quickly without taking an exam, which inherently means the insurer does not know the full scope of your medical history. In the case of final expense insurance, there is no option to take a medical exam. Insurers simply don’t make this a possibility since the policies are small, typically less than $50,000. As a general rule, life insurance policies that offer the possibility of taking a medical exam require you to buy at least $100,000 in coverage or more.
While guaranteed issue life insurance policies generally cost more than policies with health questions, there are certain circumstances where they are the cheapest option for someone. For example, if you have COPD and you smoke, a guaranteed issue policy is very likely your most affordable type of burial insurance. It all depends on the full scope of your health history. This is one of the many reasons why it’s critically important to consult with an experienced insurance agent who can apprise you of all your options given your history, budget, and needs.
In most cases, Mutual of Omaha’s final expense insurance is the cheapest burial insurance on the market. However, it’s impossible to say that any particular company is the cheapest for everyone 100% of the time. Everyone has unique circumstances, where one person may find the lowest rates with company A, while another person gets the lowest rate with company B.
All offers for state regulated burial insurance are just grossly misleading forms of marketing. Do not believe anything that appears in the ads. Those “advertisements” do not offer free final expense insurance subsidized by any state or federal government, as they would suggest. In fact, they have no connection to any government entity. If you respond to any of those promotions, a life insurance agent will call you or visit your house to try to sell you life insurance policies that are available to everyone equally (and they are not affiliated with the government).
- Nationally licensed life insurance agent with over 15 years of experience
- Personal annual production that puts him in the top .001% out of all life insurance agents in the nation.
Anthony Martin is a nationally licensed insurance expert with over 15 years of experience and has personally served over 10,000 clients with their life insurance needs. He frequently authors entrepreneurial and life insurance content for Forbes, Inc.com, Newsweek, Kiplinger, and Entreprenuer.com. Anthony has been consulted as an expert life insurance source for dozens of high-profile websites such as Forbes, Bankrate, Reuters, Fox Business, CNBC, Investopedia, Insurance.com, Yahoo Finance, and many more.
- Nationally licensed life insurance agent with over 19 years of experience
- Best selling Amazon author.
Jeff Root is a nationally licensed life insurance expert with over 19 years of experience. He has personally helped over 3000 clients with their life insurance needs. Jeff is a best-selling Amazon author and the managing partner of a highly successful insurance brokerage that manages over 2,500 licensed insurance agents across the USA. He has been a featured life insurance source for prestigious websites such as Forbes, Bloomberg, MarketWatch, Nerdwallet, and many more.
- Nationally licensed life insurance agent with over 14 years of experience
- Best selling Amazon author of five insurance sales books.
David Duford is a nationally licensed insurance expert with over 14 years of experience. He has personally helped more than 15,000 clients buy life insurance. David has been featured as an expert source for highly authoritative publications such as A.M. Best and Insurancenewsnet. He also runs one of the largest Youtube channels to help aspiring insurance agents serve their clients better.
- Nationally licensed life insurance agent with over 19 years of experience
- Best selling Amazon author.
Jeff Root is a nationally licensed life insurance expert with over 19 years of experience. He has personally helped over 3000 clients with their life insurance needs. Jeff is a best-selling Amazon author and the managing partner of a highly successful insurance brokerage that manages over 2,500 licensed insurance agents across the USA. He has been a featured life insurance source for prestigious websites such as Forbes, Bloomberg, MarketWatch, Nerdwallet, and many more.
- Nationally licensed life insurance agent with over 14 years of experience
- Best selling Amazon author of five insurance sales books.
David Duford is a nationally licensed insurance expert with over 14 years of experience. He has personally helped more than 15,000 clients buy life insurance. David has been featured as an expert source for highly authoritative publications such as A.M. Best and Insurancenewsnet. He also runs one of the largest Youtube channels to help aspiring insurance agents serve their clients better.
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American Council of Life Insurers. https://www.acli.com/-/media/acli/public/files/factbook/11fb22chapter11industryrankings.pdf
