Cremation insurance is a small whole life insurance policy meant to pay for a cremation service and other final expenses.
It provides immediate peace of mind knowing that your final arrangements are paid for and won’t become a financial burden on your loved ones.
Learn how these plans work, the cost, and the best & worst companies.
Topics Covered in this article
What Is Cremation Insurance Policy, And How Does It Work?
Cremation insurance is a type of final expense life insurance meant to pay for a cremation service, medical bills, debts, or any other end-of-life expense.
It will provide a quick cash payout to your loved ones (or funeral home) which they can spend with no restrictions.
If there happens to be money left over, it stays with your family members to use as they see fit.
Most companies offer between $2,000-$40,000 in coverage.
It’s whole life insurance that does not require a medical exam. Some policies are guaranteed acceptance 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 cost and coverage that is guaranteed never to decrease in value or expire.
In addition, it will build cash value that the policyholder may withdraw anytime.
How Much Does A Cremation Policy Cost?
The cost of final expense policies is based on your gender, age, health, tobacco history, and the amount of insurance coverage you want.
That said, below are some sample cremation insurance quotes. All prices shown are monthly premiums.
| 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 |
The Cost Of Cremation
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.
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 anyone.
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 service interests you.
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 can represent multiple senior funeral insurance companies rather than just one.
Captive companies such as State Farm, Lincoln Heritage, Globe Life, and Colonial Penn will 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
Brochure Sample Policy Sample Application
Mutual of Omaha final expense insurance is generally the most affordable cremation insurance on the market.
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-$40,000 | |
| 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) |
|
2) Aetna
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 chronic illnesses such as COPD.
Additionally, they are excellent at providing life insurance to seniors over 80.
They accept new applicants as old as 89.
So 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) |
|
3) Transamerica
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 |
|
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 $9.95 rate chart, you quickly learn that you get very little coverage.
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.
When considering the pros and cons of Colonial Penn, the fact that their coverage is guaranteed acceptance is about all they have going for them.
Lincoln Heritage
Lincoln Heritage essentially assumes that you won’t read the fine print or ask questions about their advertising claims.
They don’t plan a funeral for you and don’t 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 sell term life insurance.
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.
Their policy shortcomings are actually irrelevant most of the time.
That’s because Globe Life underwriting is stringent. They are essentially looking only for really healthy applicants. If you have ongoing health issues, expect them to decline you.