But be warned- plenty of deceptive for-profit companies will attempt to make you think there is government-backed funeral insurance available to everyone.
In this article, we’ll discuss what the government does provide, who qualifies, and explain how some private companies engage in deceptive marketing to make you think they’re affiliated with the government.
The only type of government burial insurance is the Veterans Affairs Life Insurance (VALife) plan that was released in January 2023. That program is only available to disabled veterans who meet the criteria, and it’s not free. If you’re eligible for it, you must pay for it (and it’s not cheap).
For all other U.S. citizens, there is no type of final expense insurance offered by the federal government, nor at the state or local level.
The “New 2023 state regulated life insurance program” is a deceptive marketing tactic insurance agents and agencies employ to trick consumers into thinking they’re being offered an insurance policy subsidized and endorsed by the government.
If you respond to one of those advertisements, a life insurance agent will show up at your door and call you relentlessly. They will try to sell you a life insurance policy that is:
- Not new or unique to your state
- Is not affiliated with any government entity
- Not subsidized (you alone pay for it)
An advertisement for state regulated life insurance isn’t a burial insurance scam per se because it won’t result in someone stealing your identity or money from your bank account. However, they are an incredibly misleading and immoral way to market life insurance, so you should avoid them at all costs.
If you served in the military, you are entitled to certain burial benefits provided by the VA. What you’re eligible for depends on various factors, such as whether or not you sustain a service-related or non-service-related death.
For example, for a service-related death after September 11, 2001, the VA will pay up to $2,000 toward burial costs. In addition, some or all of the transportation costs may be reimbursed if you’re buried at a VA national cemetery.
For non-service-related deaths after October 1, 2019, the VA will only pay $796 for funeral expenses if you were hospitalized by the VA when you died. If you were not in a VA hospital at the time of death, that figure is reduced to $300.
Visit the U.S. Department of Veterans Affairs for complete benefit details and eligibility requirements.
If you die, Social Security will pay a maximum of $255 to a surviving spouse or child (if there is no surviving spouse).
There is no other money that Social Security (or any other government entity) will provide for funeral costs.
If you need a senior burial policy, dozens of companies are available on the open market. Understand though, that none of them are endorsed, subsidized, or affiliated with the government in any way.
The key to finding the lowest cost of a final expense policy is to review multiple providers side by side to compare the price and terms of the policy.
For example, some burial insurance companies (such as Colonial Penn) always have a two year waiting period before you’re covered for natural causes of death. Alternatively, there is burial insurance with no waiting period from companies like Mutual of Omaha, Transamerica, and many others.
Finally, It’s highly advisable to work with an independent insurance agency like Choice Mutual that can do the comparative shopping for you. An independent broker represents multiple insurers on your behalf. They do so because that allows them to find each client the best plan possible at the lowest price.
Alternatively, if you work with a captive company like State Farm, they only have one option they can offer you. Comparing multiple providers rather than just one will always lead to a lower price and better policy terms.
If you need final expense insurance, call us at 1-800-644-2926. At Choice Mutual, final expense life insurance is all we do, and we partner with over 15 different companies. Our agents are friendly and paid a salary rather than on a commission basis.