Learn how cremation policies work, the cost, and the best companies.
Also, learn which companies you should avoid and why.
How Does Cremation Insurance Work?
Cremation insurance is a type of final expense life insurance meant to pay for a cremation service and other end-of-life expenses.
Most companies offer between $2,000-$50,000 in coverage, and a medical exam is never required.
It’s whole life insurance that does not require a medical exam. Some policies are “guaranteed issue” with no health questions or underwriting of any kind.
Understand that any policy with no health questions will always have a two-year waiting period and a higher cost.
If you die during the waiting period, the life insurance company will only refund your premiums plus a tiny amount of interest.
Insurance plans with health questions cost less and fully insure you with no waiting period (if approved).
That means if you die anytime after the policy starts, the insurance company will pay out the full death benefit.
Whole life policies always have a fixed premium, and the death benefit will never decrease in value or expire.
Since whole life is a type of permanent life insurance, it will build cash value that the policyholder may withdraw anytime.
What Does Cremation Insurance For Seniors Cover?
Cremation insurance provides a quick cash payout to your loved ones to cover all your cremation and other final costs (the money can be spent on anything), such as:
- Crematory fees
- Urn
- Cremation casket
- Funeral home fees
- Medical bills
- Financial debts
Also, keep in mind that any leftover money does not go to the funeral home or crematory. Your beneficiaries keep all excess funds.
The Best Cremation Insurance Policies
If you’re buying any type of life insurance to cover funeral expenses, you’ll get the best deal by working with an independent agency rather than directly with one single insurance provider.
Independent agencies represent multiple senior funeral insurance companies rather than just one.
Captive companies such as State Farm or Lincoln Heritage can not offer you another insurance company.
But independent agents can compare policies from 10-20 insurance companies to find you the best plan.
If you need cremation insurance, below are the three best companies to consider.
These companies only sell their coverage via licensed agencies. You cannot buy their coverage directly from them.
1 ) Mutual of Omaha
Choice Mutual’s ratings are determined by our editorial team. The scoring formula takes into account consumer experience, financial strength ratings and complaint data.
The Complaint Index compares a company’s performance to other companies in the market. The National Complaint Index is always 1.00. That means a company with a complaint index of 2.00 is twice as high as expected in the market. Reported scores are for the most recently available year and for “Individual Life” products.
Mutual of Omaha final expense insurance is generally the most affordable cremation insurance on the market.
There’s no medical exam, and you won’t find a better deal if you’re eligible for their Living Promise policy (level benefit).
| Product Details | Policy Type: Whole Life Insurance |
| New Applicant Age Range: 45-85 | |
| 2-Year Waiting Period: No (subject to underwriting approval) | |
| Coverage Amount Range: $2,000-$50,000 | |
| States Available: All States (except New York) | |
| Product Benefits | Premiums Stay the Same Forever: Yes |
| Builds Cash Value: Yes | |
| Policy Duration: Lifetime | |
| Optional Riders: Accidental Death (2X the payout for accidental death) | |
| Application Details | Where to Apply: Agencies licensed to sell Mutual of Omaha products (you can't buy this plan directly from them) |
| Phone Number to Apply: 1-800-644-2926 | |
| Medical Exam Required: No | |
| Guaranteed Acceptance: No | |
| Application Approval Time: 10 Minutes to 2 Business Days | |
Common health conditions still eligible for no waiting period coverage: Aneurysm Arthritis Asthma Blindness Blood clots > 2 years ago Blood thinners Cancer > 4 years ago Circulatory surgery > 2 years ago Crohn’s disease Depression Diabetes (type 2) Diverticulitis Epilepsy Fibromyalgia Grave’s disease Heart attack > 2 years ago Heart surgery > 2 years ago Hepatitis A or B High blood pressure High cholesterol Scleroderma Seizures Sleep apnea Squamous/basal cell skin cancer Stroke/TIA > 2 years ago Tumors (non-cancerous) |
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2) Aetna
Choice Mutual’s ratings are determined by our editorial team. The scoring formula takes into account consumer experience, financial strength ratings and complaint data.
The Complaint Index compares a company’s performance to other companies in the market. The National Complaint Index is always 1.00. That means a company with a complaint index of 2.00 is twice as high as expected in the market. Reported scores are for the most recently available year and for “Individual Life” products.
Like Mutual of Omaha, Aetna senior products are affordable and accept many health conditions.
Aetna life insurance is likely your best option if you deal with certain chronic illnesses such as COPD.
Additionally, they are excellent at providing life insurance to seniors over 80. They are one of the few companies that will accept a new applicant as old as 89.
If you need life insurance for an elderly parent, Aetna is a great company to investigate.
| Product Details | Policy Type: Whole Life Insurance |
| New Applicant Age Range: 40-89 | |
| 2-Year Waiting Period: No (subject to underwriting approval) | |
| Coverage Amount Range: $2,000-$50,000 (varies by age) |
|
| States Available: All States (except New York) | |
| Product Benefits | Premiums Stay the Same Forever: Yes |
| Builds Cash Value: Yes | |
| Policy Duration: Lifetime | |
| Optional Riders: Accidental Death (2X the payout for accidental death) |
|
| Application Details | Where to Apply: Agencies licensed to sell Aetna products (you can't buy this plan directly from them) |
| Phone Number to Apply: 1-800-644-2926 | |
| Medical Exam Required: No | |
| Guaranteed Acceptance: No | |
| Application Approval Time: 15 Minutes-3 Business Days | |
Common conditions still eligible for no waiting period coverage: Afib Aneurysm (if surgically repaired) Arthritis Asthma Bipolar disorder Blindness Blood clots Blood thinners Cancer > 2 years ago Chronic bronchitis Circulatory surgery > 2 years ago COPD Crohn’s disease Depression Diabetes (type 1 or 2) Diabetic coma > 2 years ago Diverticulitis Epilepsy Fibromyalgia Graves’ disease Heart attack > 1 year ago Heart surgery > 1 year ago Hepatitis > 2 years ago High blood pressure High cholesterol Insulin shock > 2 years ago Lupus Multiple sclerosis Obesity Over 85 life insurance Pacemaker (installed > 1 year ago) Parkinson’s disease Sarcoidosis Schizophrenia Scleroderma Seizures Sleep apnea Squamous/basal cell skin cancer Stroke/TIA > 1 year ago Tumors (noncancerous) |
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3) Transamerica
Choice Mutual’s ratings are determined by our editorial team. The scoring formula takes into account consumer experience, financial strength ratings and complaint data.
The Complaint Index compares a company’s performance to other companies in the market. The National Complaint Index is always 1.00. That means a company with a complaint index of 2.00 is twice as high as expected in the market. Reported scores are for the most recently available year and for “Individual Life” products.
Transamerica offers some of the lowest-cost life insurance for seniors over 70 and 75.
Also, they’re very accepting of people who have high-risk health conditions like angina, COPD, and Parkinson’s, to name a few.
They are one of the best funeral insurance companies due to their low prices and competitive underwriting.
| Product Details | Policy Type: Whole Life Insurance |
| New Applicant Age Range: 45-85 | |
| 2-Year Waiting Period: No (subject to underwriting approval) | |
| Coverage Amount Range: $1,000-$50,000 (varies by age) | |
| States Available: All States | |
| Product Benefits | Premiums Stay the Same Forever: Yes |
| Builds Cash Value: Yes | |
| Policy Duration: Lifetime | |
| Optional Riders: Accidental Death (2X the payout for accidental death) | |
| Application Details | Where to Apply: Agencies licensed to sell Transamerica products (you can't buy this plan directly from them) |
| Phone Number to Apply: 1-800-644-2926 | |
| Medical Exam Required: No | |
| Guaranteed Acceptance: No | |
| Application Approval Time: 15 Minutes- 5 Business Days | |
Common conditions still eligible for no waiting period coverage: Afib Angina (chest pains) Aneurysm (if surgically repaired) Arthritis Asthma Bipolar disorder Blindness Blood clots Blood thinners Cancer > 4 years ago Chronic bronchitis Circulatory surgery > 1 year ago COPD Crohn’s disease Depression Diabetes (type 2) Diverticulitis Epilepsy Fibromyalgia Grave’s disease Heart attack > 1 year ago Heart surgery > 1 year ago Hepatitis High blood pressure High cholesterol Kidney disease (no dialysis) Lupus Multiple sclerosis Pacemaker (installed > 1 year ago) Parkinson’s disease Schizophrenia Scleroderma Seizures Sleep apnea Squamous/basal cell skin cancer Stroke/TIA > 1 year ago Tumors |
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How Much Do Cremation Final Expense Policies Cost?
A cremation final expense insurance policy will usually cost between $25-$75 monthly, depending on your gender, age, health, tobacco history, and the amount of insurance coverage you want.
That said, below are some sample cremation insurance rates (monthly premiums) for various ages.
| Age | $2,000 | $3,000 | $4,000 | $5,000 | $10,000 |
|---|---|---|---|---|---|
| 45 | F: $7.08 M: $7.99 | F: $9.02 M: $10.38 | F: $10.96 M: $12.77 | F: $12.91 M: $15.16 | F: $22.61 M: $27.11 |
| 50 | F: $7.42 M: $8.70 | F: $9.53 M: $11.45 | F: $11.64 M: $14.19 | F: $13.75 M: $16.94 | F: $24.31 M: $30.68 |
| 55 | F: $8.10 M: $9.75 | F: $10.55 M: $13.03 | F: $13.00 M: $16.30 | F: $15.45 M: $19.58 | F: $27.71 M: $35.95 |
| 60 | F: $9.14 M: $11.32 | F: $12.10 M: $15.37 | F: $15.07 M: $19.43 | F: $18.04 M: $23.48 | F: $32.87 M: $43.76 |
| 65 | F: $10.77 M: $13.86 | F: $14.55 M: $19.19 | F: $18.33 M: $24.51 | F: $22.11 M: $29.84 | F: $41.01 M: $56.48 |
| 70 | F: $13.21 M: $17.48 | F: $18.21 M: $24.63 | F: $23.22 M: $31.77 | F: $28.22 M: $38.91 | F: $53.24 M: $74.61 |
| 75 | F: $17.05 M: $22.56 | F: $23.97 M: $32.23 | F: $30.89 M: $41.91 | F: $37.81 M: $51.59 | F: $72.41 M: $99.97 |
| 80 | F: $22.25 M: $30.51 | F: $31.77 M: $44.16 | F: $41.30 M: $57.81 | F: $50.82 M: $71.47 | F: $98.43 M: $139.73 |
| 85 | F: $29.74 M: $41.11 | F: $43.01 M: $60.06 | F: $56.28 M: $79.02 | F: $69.55 M: $97.97 | F: $135.90 M: $192.74 |
| 86 | F: $37.06 M: $50.05 | F: $53.85 M: $73.32 | F: $70.63 M: $96.60 | F: $87.41 M: $119.87 | F: $171.32 M: $236.25 |
| 87 | F: $43.99 M: $58.13 | F: $64.24 M: $85.45 | F: $84.49 M: $112.77 | F: $104.74 M: $140.09 | F: $205.97 M: $276.67 |
| 88 | F: $50.92 M: $66.22 | F: $74.64 M: $97.58 | F: $98.35 M: $128.94 | F: $122.06 M: $160.30 | F: $240.62 M: $317.10 |
| 89 | F: $57.85 M: $74.30 | F: $85.03 M: $109.71 | F: $112.21 M: $145.11 | F: $139.39 M: $180.51 | F: $275.27 M: $357.52 |
Popular Insurance Companies To Avoid
Despite ample advertising to convince you that these companies are the best, they are anything but.
Don’t be misled by their clever marketing.
AARP
The AARP life insurance program via New York Life has two significant drawbacks.
First, their underwriting is strict, so most seniors will not qualify for their no waiting period coverage.
AARP will generally respond to most seniors by offering their guaranteed acceptance coverage, which is expensive and has a two-year waiting period.
But even for healthy seniors, AARP final expense coverage is much more costly than most other providers.
Colonial Penn
First, the advertisements featuring Jonathan Lawson for their $9.95 plan are incredibly misleading.
When you look at a rate chart, you quickly learn that $9.95 buys a tiny coverage amount.
For example, a 70-year-old male would only have $689 of life insurance for $9.95 monthly.
In addition to their expensive coverage, Colonial Penn has a two-year waiting period for everyone.
Lincoln Heritage
Lincoln Heritage assumes you won’t read the fine print or ask questions about their advertising claims.
They don’t plan a funeral for you or guarantee they will save you money on funeral costs.
What is objectively true is that Lincoln Heritage can be 20-300% more expensive than other final expense insurance companies.
Globe Life
Globe Life Insurance Company is particularly heinous because they push a term life insurance policy to cover funeral expenses.
Their policy will increase in cost every five years and expires once you turn 90 years old.
Frequently, the price increases become too much because most seniors are on a fixed income.
Furthermore, if you live past 90 (becoming more common), you’d have no insurance to fulfill your final wishes.
The final drawback to Globe Life is the underwriting, which is very stringent. They are essentially looking only for extremely healthy applicants.
If you have ongoing health issues, expect Globe Life to decline you.
How Much Does Cremation Cost?
On average, a cremation plan with a service costs $6,970, which includes a viewing. However, a direct cremation (aka “low-cost cremation”), which has no funeral services, costs about $2,183.
With direct cremation, you’re basically only paying for the cremation process and a container for the ashes.
Whether you have a memorial service or not, you can reduce or increase the cost depending on your final wishes.
For example, there are multiple types of cremation (with varying costs). There are also different types of cremation caskets.
It’s undoubtedly true that the cost of cremation is less than the cost of a funeral with a burial.
The average traditional funeral with a burial, embalming, and viewing costs $9,420.
No matter your preferences, funeral costs are expensive (especially if you want a traditional burial). That’s why exercising proper funeral planning is essential to ensure your final expenses don’t burden your family members.
You can make one single pre-payment, buy cremation life insurance or make installments on a prepaid cremation.
If you’re unsure how much a cremation will cost, you can always meet with a funeral director. They can give you specific prices for whatever pre-planning services interest you.
Frequently Asked Questions
The best way to buy a cremation insurance policy is from an insurance broker who represents numerous insurance companies. They can compare insurance quotes from many providers to find you the best policy. Alternatively, some insurance companies sell their products directly to the consumer. For example, Colonial Penn and Globe Life deal directly with consumers rather than relying on agents to sell their life insurance policies.
Purchasing cremation insurance is only worth it if you otherwise cannot pay for your cremation and other final expenses. One significant value of a cremation policy is that the payout money does not have to be used only for cremation costs. The funds can be spent on medical bills, debts, or anything else.
Life insurance proceeds can be used to pay for a funeral. That means your beneficiaries can use the money for cremation costs or anything else. Plus, any leftover money they don’t use for funeral bills is theirs to keep and use as they see fit.
To file a claim for a cremation policy, the beneficiary must call the insurance company. The insurance provider will require a copy of the death certificate and have the beneficiary sign a form certifying their identity. The payout time for a final expense is typically a few business days once a claim is approved.
