How Does Burial Insurance For Seniors Work?
Senior burial insurance is a type of no medical exam whole life insurance policy meant to pay for your burial and other final expenses.
The death benefit pays out quickly to your loved ones, providing them with the money necessary to pay for cremation costs, burial costs, funeral services, outstanding debts, medical bills, credit card debts, or anything else required after death. Also, your beneficiaries can keep any money they don’t use on funeral expenses.
Because a burial policy is a type of whole life insurance, it’s permanent coverage with fixed premiums. Also, the death benefit won’t decrease, and it builds cash value. The coverage amounts are generally smaller- usually $50,000 or less.
One of the most unique elements of a burial insurance policy is the lenient underwriting. Despite severe health issues, seniors can still qualify for a new policy, which is not true for traditional life insurance policies.
There are two types of final expense insurance plans for seniors. Be sure to consider the pros and cons of each option when choosing which plan is best for you:
- Simplified issue: These plans are the least expensive and can offer immediate peace of mind because the full death benefit pays out starting on day one (no waiting period). You don’t have to take a medical exam but must answer health questions. Simplified issue policies are often called “no exam funeral insurance.”
- Guaranteed issue: Commonly referred to as “guaranteed acceptance,” these plans have no health questions because your approval is guaranteed. They have higher premiums than simplified issue policies, and there’s always a two-year waiting period for non-accidental death. If you die during the waiting period, the insurance company will only refund your premiums plus a tiny amount of interest.
What Expenses Can Burial Insurance For Seniors Cover?
A senior burial insurance policy can cover all the expenses associated with your funeral plans, including:
- Funeral costs
- Headstone or other memorial monuments
- Medical bills
- Transportation expenses
- Outstanding debts or other bills
Also, any money your loved ones don’t spend on your final expenses is theirs to keep.
How To Get Funeral Insurance For Seniors With No Waiting Period
To obtain a policy with no waiting period, you must, at minimum, answer health questions. You don’t have to complete a medical exam, but you will have to complete a health questionnaire.
Remember that most people, despite past health ailments, can qualify for immediate coverage. You don’t have to be in good health.
Don’t mistakenly assume you will have a waiting period due to your past ailments. Unless you have a terminal illness or dementia, you can probably qualify for an immediate coverage policy.
If you want a plan that immediately covers you, call us at 1-800-644-2926. We have over 15 different insurance companies that we partner with.
If immediate coverage is possible for you, we’ll find it.
How Much Does Senior Final Expense Life Insurance Cost?
The average cost of funeral insurance for seniors is about $50-$100 per month for a $10,000 policy. All life insurance rates vary based on your health, age, gender, state of residence, and the amount of coverage you buy. Below is a rate chart with some sample monthly costs.
| Age & Gender | $5,000 | $10,000 | $25,000 |
|---|---|---|---|
| Female age 40 | $12 | $21 | $47 |
| Male age 40 | $14 | $25 | $57 |
| Female age 45 | $13 | $23 | $52 |
| Male age 45 | $15 | $27 | $63 |
| Female age 50 | $14 | $24 | $55 |
| Male age 50 | $17 | $31 | $71 |
| Female age 55 | $15 | $28 | $64 |
| Male age 55 | $20 | $36 | $84 |
| Female age 60 | $18 | $33 | $76 |
| Male age 60 | $23 | $43 | $103 |
| Female age 65 | $22 | $41 | $97 |
| Male age 65 | $29 | $54 | $130 |
| Female age 70 | $28 | $53 | $127 |
| Male age 70 | $37 | $70 | $169 |
| Female age 75 | $37 | $71 | $172 |
| Male age 75 | $50 | $97 | $238 |
| Female age 80 | $50 | $98 | $241 |
| Male age 80 | $69 | $135 | $332 |
| Female age 85 | $70 | $136 | $335 |
| Male age 85 | $91 | $178 | $440 |
| Female age 89 | $131 | $260 | $651 |
| Male age 89 | $180 | $357 | $888 |
The Best Burial Insurance Companies For Seniors
Mutual of Omaha
Choice Mutual’s ratings are determined by our editorial team. The scoring formula considers consumer experience, policy cost, underwriting criteria, the insurer’s financial strength ratings, and complaint data.
AM Best’s Financial Strength Rating (FSR) is an independent opinion of an insurer’s financial strength and ability to meet its ongoing insurance policy and contract obligations. The scores range from A++ to D-.
The BBB rating is based on information BBB is able to obtain about the business, including complaints received from the public. BBB seeks and uses information directly from businesses and from public data sources. BBB assigns ratings from A+ (highest) to F (lowest). If a business has been accredited by the BBB, it means BBB has determined that the business meets accreditation standards, which include a commitment to make a good faith effort to resolve any consumer complaints.
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.
Low prices– In most cases, Mutual of Omaha has the least expensive burial insurance for seniors. If you qualify for the level benefit, you’re unlikely to find a cheaper rate elsewhere.
Immediate coverage (no waiting period)– If approved, you’re fully insured for accidental or natural death on the day the policy begins.
Trusted brand name– Mutual of Omaha is a trusted brand name company that has been in business since 1909 and has A+ ratings with major insurance company rating agencies such as AM Best. You can rest easy knowing they have the financial strength to pay their claims (and they do).
No online application– You cannot buy this policy online. You must verbally speak with a licensed agent authorized to sell Mutual of Omaha final expense insurance products.
Living Promise whole life insurance from Mutual of Omaha is the best overall option for seniors because they usually have the lowest premiums and no waiting period.
You can buy up to $50,000 in coverage without taking a medical exam (you must still answer health questions). The underwriting is very lenient, so you’ll probably qualify unless you’ve had a recent heart attack, stroke, cancer, or significant chronic illnesses.
On a side note, they also offer inexpensive life insurance coverage for babies if that interests you.
To get even more details, read our Mutual of Omaha burial insurance review
Aetna
Choice Mutual’s ratings are determined by our editorial team. The scoring formula considers consumer experience, policy cost, underwriting criteria, the insurer’s financial strength ratings, and complaint data.
AM Best’s Financial Strength Rating (FSR) is an independent opinion of an insurer’s financial strength and ability to meet its ongoing insurance policy and contract obligations. The scores range from A++ to D-.
The BBB rating is based on information BBB is able to obtain about the business, including complaints received from the public. BBB seeks and uses information directly from businesses and from public data sources. BBB assigns ratings from A+ (highest) to F (lowest). If a business has been accredited by the BBB, it means BBB has determined that the business meets accreditation standards, which include a commitment to make a good faith effort to resolve any consumer complaints.
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.
Seniors as old as 89 can apply- Most companies won’t accept applicants over 85, but Aetna will take someone as old as 89.
Most pre-existing conditions are okay- Aetna won’t deny applicants who have multiple pre-existing conditions such as diabetes, COPD, past heart attacks or strokes, and much more.
Excellent reputation and low complaints- Aetna’s been in business for over 150 years, is a reliable brand name company, and has very few consumer complaints.
Maximum coverage varies by age– Your age dictates how much coverage you buy. For example, if you’re over 75, $25,000 is the most coverage Aetna will allow you to buy.
Aetna has very low prices for seniors over 80 and they are one of only five companies that offers coverage above 85. Senior citizens as old as 89 can acquire a new policy.
They offer immediate no-exam life insurance options to seniors with high-risk health conditions such as COPD, diabetes, Parkinson’s, multiple sclerosis, diabetes, and atrial fibrillation, to name a few.
Another positive feature of Aetna life insurance is its very lax rules regarding beneficiaries. For example, they will allow you to name a friend or funeral home as the beneficiary. Not all final expense carriers will allow that.
To get even more details, read our Aetna burial insurance review
Aflac
Choice Mutual’s ratings are determined by our editorial team. The scoring formula considers consumer experience, policy cost, underwriting criteria, the insurer’s financial strength ratings, and complaint data.
AM Best’s Financial Strength Rating (FSR) is an independent opinion of an insurer’s financial strength and ability to meet its ongoing insurance policy and contract obligations. The scores range from A++ to D-.
The BBB rating is based on information BBB is able to obtain about the business, including complaints received from the public. BBB seeks and uses information directly from businesses and from public data sources. BBB assigns ratings from A+ (highest) to F (lowest). If a business has been accredited by the BBB, it means BBB has determined that the business meets accreditation standards, which include a commitment to make a good faith effort to resolve any consumer complaints.
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.
Great prices- Aflac’s rates over 50 and under 70 are on the lowest end of the spectrum relative to other companies. It’s hard to find a lower price in this age range. Even above 70, their prices are very competitive.
Strong brand with high marks– Aflac is a well-known brand name company with solid financials and high marks from insurance company rating agencies.
No coverage over 80 years old– 80 is the maximum age at which Aflac will accept a new applicant. If you’re 81 or older, you’ll need to apply with another company.
Aflac final expense insurance is an excellent option whether you’re healthy or have severe conditions like COPD or Parkinson’s.
In addition to them accepting many health issues, their prices are in line with most other providers. In particular, they offer some of the cheapest burial insurance for seniors over 60.
There are no medical exams, and they often approve applications within 15 minutes.
To get even more details, read our Aflac burial insurance review
Royal Neighbors of America
Choice Mutual’s ratings are determined by our editorial team. The scoring formula considers consumer experience, policy cost, underwriting criteria, the insurer’s financial strength ratings, and complaint data.
AM Best’s Financial Strength Rating (FSR) is an independent opinion of an insurer’s financial strength and ability to meet its ongoing insurance policy and contract obligations. The scores range from A++ to D-.
The BBB rating is based on information BBB is able to obtain about the business, including complaints received from the public. BBB seeks and uses information directly from businesses and from public data sources. BBB assigns ratings from A+ (highest) to F (lowest). If a business has been accredited by the BBB, it means BBB has determined that the business meets accreditation standards, which include a commitment to make a good faith effort to resolve any consumer complaints.
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.
Diabetic friendly– Seniors with diabetes can easily qualify with Royal Neighbors even if they’re on insulin. They also have no weight chart, so being overweight won’t cause you to pay more or be denied.
Quick approvals– Most applications are approved in just a few minutes.
Prices for seniors under 60– The rates for seniors 50-60 are not competitive. Seniors in this age range will find much lower premiums with other companies.
Royal Neighbors of America isn’t a name you’ll see on TV, but that doesn’t mean they aren’t reliable or financially sound. Having been in business since 1895 clearly indicates that they’re a trustworthy company that’s tracking to be around another 100 years.
Seniors with diabetes, past heart issues, past instances with cancer, multiple sclerosis, Parkinson’s disease, and many other high-risk health issues will have no difficulty qualifying for their level benefit senior life insurance that has no waiting period.
In many cases, Royal Neighbors will approve seniors that most other companies outright decline.
They also offer all policyholders free member benefits at no additional cost.
To get even more details, read our Royal Neighbors burial insurance review
American Amicable
Choice Mutual’s ratings are determined by our editorial team. The scoring formula considers consumer experience, policy cost, underwriting criteria, the insurer’s financial strength ratings, and complaint data.
AM Best’s Financial Strength Rating (FSR) is an independent opinion of an insurer’s financial strength and ability to meet its ongoing insurance policy and contract obligations. The scores range from A++ to D-.
The BBB rating is based on information BBB is able to obtain about the business, including complaints received from the public. BBB seeks and uses information directly from businesses and from public data sources. BBB assigns ratings from A+ (highest) to F (lowest). If a business has been accredited by the BBB, it means BBB has determined that the business meets accreditation standards, which include a commitment to make a good faith effort to resolve any consumer complaints.
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.
Low smoker rates– If you smoke cigarettes, American Amicable will often be one of the cheapest companies. Also, if you occasionally smoke cigars or a pipe, they will give you a non-tobacco price, which could result in a savings of about 40%.
Flexible underwriting– American Amicable uniquely allows you to explain why you were prescribed certain medications in your history rather than just assuming the reason for the prescription(s). That is highly advantageous because most providers have strict guidelines regarding how they respond to certain medications. So if you have a medication(s) that seems to indicate that you have a particular medical condition when, in fact, you don’t, American Amicable will allow you to explain the situation. The ability to provide context to your medication history often leads to approvals you could not get elsewhere.
Convenient payment options– You can pay monthly, quarterly, semi-annually, and annually like all other companies. In addition, if you’re behind on a payment(s), they have a system that allows you to make a one-time payment using a credit or debit card.
Health seniors can get lower prices elsewhere– If you’re in decent health, other insurance providers have better rates.
There are many cases where American Amicable has the best funeral insurance for seniors. It’s not just because they offer low prices to people who smoke cigarettes.
For example, people with mental health issues such as anxiety, depression, bipolar disorder, or schizophrenia can get rock-bottom rates and no waiting period coverage.
They make it easy to execute policy changes. Most things can be accomplished electronically or verbally. In addition, they have a convenient live chat service where you can typically chat with a customer service representative within 60 seconds.
To get even more details, read our American Amicable burial insurance review
How To Find The Best Burial Insurance For Elderly People
No matter what product you’re buying, it’s no secret that you should compare offers from multiple companies before you commit to one.
The same is true when looking for an affordable final expense policy for seniors.
Browse websites like Choice Mutual that allow you to compare free quotes from multiple insurance providers. That will give you a good sense of what coverage will likely cost you.
In the end, if you want a life insurance policy with no waiting period at the lowest price possible, you will need to speak with an agent.
It’s helpful to remember that most final expense insurance companies that sell coverage directly to the consumer online or via mail usually impose a two-year waiting period before you’re insured because they are selling you guaranteed issue life insurance (which always has a waiting period). Colonial Penn is one such example.
Generally speaking, only licensed agents can offer the best rates and plans that pay out the full death benefit immediately.
But don’t speak with just any insurance agent. Here are the criteria you should look for when selecting an agency to work with:
- Independence: Be sure to work with an independent agency with access to at least ten insurance companies. They will compare offers from multiple providers to match you with the best one so you can save money. It’s highly advisable to avoid “captive” insurance companies. Captive insurance companies do not allow their agents to offer coverage from any other provider. State Farm is an example of a captive company. State Farm agents can only sell you State Farm insurance. Similarly, Lincoln Heritage Funeral Advantage is another non-independent company because they typically don’t allow their agents to offer any other insurer. So be sure to work with a broker who can choose from dozens of insurers to find the best one for you.
- Reputation: Check their online reputation to ensure past customers were satisfied with their service. A bad online reputation usually indicates lousy insurance products and poor customer service.
- Expertise: It’s hard to be a jack of all trades in the insurance business. Be sure to find one that specializes in funeral insurance for seniors. That way, you know you’re dealing with an expert rather than a novice.
An honest independent agent is your surest path to finding the best life insurance for seniors.
Be Wary Of Buying A Term Life Insurance Policy For Final Expense Coverage
Buying a term life insurance policy to cover end-of-life expenses is risky.
At the latest, a term life plan will generally expire around age 80.
AARP’s final expense insurance is a prominent example of a term life offering for burial coverage. Their primary policy is a term plan that completely expires once you turn 80.
Globe Life Insurance is another option that expires in your 80s.
Both AARP and Globe have the same marketing tactics. They dazzle seniors with their lower-cost term life insurance, hoping they’ll be attracted to the lower prices (which they usually are).
Because term insurance expires, it will always have less expensive premium payments than whole life.
They are counting on policyholders never stopping to consider why the insurance is cheaper.
Sadly, many unsuspecting consumers fall for that trick. Then, on their 80th birthday, they learn the truth because they get a letter telling them they are uninsured.
If you need a life insurance plan to cover the cost of a funeral, you should opt for the peace of mind that permanent life insurance offers.
Term insurance will likely lead to a financial burden for your family members because they will have to pay for your burial costs.
So be very wary of AARP life insurance for seniors for these reasons.
Coverage For Elderly Parents
In short, you can buy funeral expense insurance for your parents or grandparents.
Here’s what you need to know:
- They must agree to the policy being issued. You cannot buy life insurance for a parent without their knowledge and consent. If your parents do not want to participate, just put money into a savings account or buy a pre-paid burial from a funeral home. Even if you have power of attorney, they must still answer the questions and consent. Under no circumstances can you do it for them.
- They’ll need to answer health questions if you want immediate coverage for them. You should gather some details about their past and current health issues before speaking with an agent. With their health information, your agent can determine which company (if any) will approve them for an immediate coverage plan.
Just know that you don’t need your parents on the phone when you initially speak with an agent.
For example, at Choice Mutual, we can give you life insurance quotes for multiple policy types, answer your questions, and familiarize you with the application process.
Then, when you’re ready to apply formally, we’ll coordinate a time to connect with both you and your parents.
Frequently Asked Questions
At the very least, everyone who is 45-85 can obtain a guaranteed acceptance policy. However, it’s important to note that all guaranteed issue policies have a two-year waiting period. If you die during the waiting period, the insurer only refunds your premiums plus interest. Seniors should opt to apply for coverage that has a health questionnaire. If approved, the policy will likely be cheaper and not have a waiting period. There are still options for people outside of 45-85, but you’ll have to medically qualify for the coverage.
Ideally, you should buy enough coverage that would sufficiently pay for your desired funeral. The National Funeral Directors Association recently reported that the average burial costs $9,995, which includes a value and viewing. They also reported that a cremation costs $6,280.
When comparing a burial policy vs life insurance, it’s helpful to remember that burial or funeral insurance is a type of life insurance. To be more specific, burial insurance plans are a particular type of permanent life insurance with small coverage options and a fast claim payout.
There are absolutely no hidden fees when you buy final expense insurance. Also, there are no down payments when you submit your application. Your monthly payment is the only money you’ll ever pay.
Final expense insurance pays a tax-free cash benefit to your beneficiaries. They can use the money as they see fit and keep what’s left over. Your loved ones will never incur a tax burden because of the policy payout.
Cash value in a life insurance policy is like a behind-the-scenes savings account that accumulates value over time. Every time you make a payment, a portion of your payment goes toward the insurance cost. At the same time, a much smaller amount goes into a behind-the-scenes savings account called the cash value. You may elect to borrow from the cash value that has accumulated. Nearly all final expense insurance policies have cash value. Both whole life and universal life policies build cash value.
90 is the age limit for life insurance. Even though there are options for ages 86-90, there are only a handful of companies available, and it varies by state. If you’re above 90, you should explore a pre-paid plan directly with a local funeral home.
There is no difference. Keep in mind that “burial insurance” is just a marketing expression. It is also commonly referred to as “funeral insurance,” “final expense insurance,” “cremation insurance,” or “end-of-life insurance.” All these names have the same meaning.
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.
- ratings. https://www.mutualofomaha.com/about/financial-strength
- Royal Neighbors of America. https://www.royalneighbors.org/about-us
- member benefits. https://www.royalneighbors.org/membership/member-savings
- Term insurance. https://www.guardianlife.com/life-insurance/how-term-life-works#How%20does
- National Funeral Directors Association. https://nfda.org/news/media-center/nfda-news-releases/id/8134/2023-nfda-general-price-list-study-shows-inflation-increasing-faster-than-the-cost-of-a-funeral
- Cash value. https://www.investopedia.com/terms/c/cash-value-life-insurance.asp
