Final Expense Insurance

How to buy burial insurance for a sibling

Are you wondering if you can get final expense life insurance on a sibling?
Yes, you can!
In this article, you’ll learn what’s required, the policy options, see sample prices, and how to apply.

Topics covered in this article

 

Can you buy burial insurance for your siblings?

Yes, you can buy final expense insurance on your brother or sister, provided they consent to the policy being issued.

Most burial companies will allow you to purchase $2,000-$50,000 in coverage on a sibling. They don’t have to take an exam. Some policies don’t even have health questions.

You will be the payer of the policy; your sibling is merely the insured. In addition, you’ll be the primary beneficiary unless you prefer someone other than you to receive the proceeds of the policy.

Also, you can name a contingent (backup/secondary) beneficiary. That individual(s) would only receive the death benefit if you were not alive when your sibling died.

 

Requirements

Even though you’re the one paying for the policy on your sibling, it doesn’t by default mean you can do it.

To buy a funeral insurance plan for your sibling, you must satisfy the following:

  • Their consent: They must agree to the policy being issued by signing the application.
  • Insurable interest: This is another way of saying; how would you be financially impacted upon the insured’s death?If you’re seeking coverage for funeral costs, the financial impact is evident and requires no explanation. They are your brother/sister, and their end-of-life expenses would be a burden. Every final expense insurance company will allow you to buy a burial insurance plan for your sibling. There will be no questions about insurable interest, a financial burden, or anything else related to why you’re buying the coverage.
  • Answers to health questions: If you opt for a plan with no waiting period, your sibling will need to answer health questions. When making the formal application, you cannot answer the questions on their behalf. They must do it. Some plans have no health questions, but those cost much more and have a 2-year waiting period before they’re insured.

It’s perfectly acceptable to have a preliminary conversation with an agent so that you can familiarize yourself with the cost and process.

However, you will need your sibling when you go to apply.

 

How does final expense insurance for a sibling work?

A whole life final expense policy (often referred to as burial or funeral insurance) is a small life insurance policy designed to cover your end-of-life costs.

These plans don’t require an exam, and they approve most applicants despite having severe health issues.

A whole life policy is straightforward to explain:

  • Prices will never change.
  • Coverage will never decrease.
  • The policy will never expire.
  • Builds cash value that you can borrow.

Essentially, once the policy is issued, it will never change or end at any point (unless you stop making the payments).

Ultimately, the policy will pay out a tax-free cash payment directly to the beneficiary. There are never any restrictions regarding how the beneficiaries spend the money.

So if you buy a funeral insurance policy on a sibling and don’t use all the money on the funeral, the leftover funds are yours to use any way you want.

 

No waiting period policies

Some funeral life insurance planshave a 2-3 year waiting period provision. During this time, the insurance company would not pay out a death benefit for any non-accidental death.

Instead, they would reimburse all your premiums with interest (usually, it’s 10%).

Now, some plans have no waiting period.

The main thing to understand is that you must qualify for a policy that has no waiting period.

Your brother or sister does not have to take a medical exam to get a no waiting period policy. However, they must at minimum answer health questions.

Thankfully, most people can qualify for a no waiting period burial policy. You’d be amazed at how many different health issues are insurable.

Please don’t make the mistake of assuming your sibling can’t get an immediate coverage policy because they probably can.

Call us at 1-800-644-2926, and one of our agents can determine all your sibling’s options within 60 seconds.

 

Guaranteed acceptance coverage

Some companies like AIG or Gerber Life have plans which have no health questions.

With these policies, your acceptance is guaranteed.

Understand that a plan like this (no matter which insurance company you’re dealing with) will always have a 2-year waiting period since they know absolutely nothing about the insured’s health.

The thing is, sometimes, a guaranteed acceptance plan is your only option. While it’s not common, there are some situations where a no health question plan is indeed your only option.

Here are some health issue examples where a guaranteed acceptance policy is your only path to a new insurance policy being issued:

  • Dementia/Alzheimer’s
  • Congestive heart failure
  • Dialysis
  • Past transplants
  • Currently in a hospital or nursing facility
  • AIDS or HIV
  • Terminal illness
  • Oxygen
  • Confined to a wheelchair due to a chronic illness/disease
  • Cancer within the last 12 months
  • Your sibling won’t answer health questions

There are other situations where guaranteed issue life insuranceis your only option, but that covers most of them.

Hopefully, it’s unnecessary, but take comfort knowing that you can get a guaranteed acceptance policy if the situation warrants it no matter what.

 

How to apply for funeral insurance on a sibling

Assuming your sibling has agreed to the policy being issued, the next step is to complete the application. There are essentially three ways to apply.

  1. E-application: Your agent will gather all the data necessary to complete the application. If there are health questions, they will go over the questions with your brother or sister. Then you and your sibling would get an email or a text to access the application. Then you guys both click a few buttons to apply your electronic signature. That will submit the application to the insurance company.
  2. Voice signature: Your agent collects all the data necessary to fill out the entire application and read your sibling the health questions (if any). Then you both will sign the application with your voice by saying something such as “Yes, I agree. My name is [your name] and today is [today’s date]”. That will complete the application and get it submitted to the insurance carrier.
  3. Paper application: While it’s rarely necessary, some situations warrant a paper application be mailed to you so you both can apply a wet signature. Once you sign the application and send it back to your agent, they will submit it to the insurance company for processing. One thing to remember about paper applications is that you and your brother or sister must live close to one another. If you live in separate states, there is no way to apply via paper. You both have to sign the application simultaneously (and you cannot sign for them).

Once an application is submitted (regardless of the method), you can anticipate an approval within 5 minutes to a few days. Some final expense insurance companies yield an immediate underwriting decision, but some do take a few days to process it.

Suppose you’re applying for a guaranteed acceptance policy with no health questions. In that case, those plans are issued immediately upon submission (since there is no underwriting).

After the policy is issued, expect to receive a paper version of the policy within 2-3 weeks. With most insurance providers, the insurance goes into effect the day you elect the premiums to begin.

 

Sample final expense rates

Prices vary based on the insured’s exact age, gender, health, and how much coverage you buy. On average, premiums tend to be in the $50-$100 range for a $10,000-$15,000 policy.

Below is a table that outlines some sample prices. You can also use the quoting tool on this page to see specific prices from multiple insurance companies in your state.

 

AgeFemale
$10,000
No Waiting Period
Female
$10,000
Guaranteed Acceptance
Male
$10,000
No Waiting Period
Male
$10,000
Guaranteed Acceptance
45$22$28$27$33
50$24$30$30$36
55$27$38$35$45
60$32$42$43$55
65$41$51$54$66
70$51$69$70$89
75$71$98$99$121
80$98$140$139$166
85$135$170$192$230
89$275N/A$358N/A

 

Best funeral insurance companies for a sibling

There are dozens of final expense companies in the USA. Which one is best for your brother or sister depends on their unique situation.

That said, below are the top five companies to consider.

 

1) Mutual of Omaha

  • Coverage options: $2,000 -$40,000
  • New applicant age range: 45-85
  • 2-year waiting period: no (subject to underwriting approval)
  • A.M. Best rating: A+ (superior)
  • First year in business: 1909
  • Phone number to apply: 1-800-644-2926

Mutual of Omaha’s funeral insurance is easily the best on the market. If your sibling can qualify, you should jump on it.

Their rates are low, the issue policies fast, and working with them is effortless.

Click herefor a detailed write-up of their coverage.

 

2) Aetna

  • Coverage options: $2,000 -$50,000 (varies by age)
  • New applicant age range: 40-89
  • 2-year waiting period: no (subject to underwriting approval)
  • A.M. Best rating: A (excellent)
  • First year in business: 1853
  • Phone number to apply: 1-800-644-2926

Aetna has a really unique product that will accept a lot of serious health issues. It’s competitively priced, and applying with them is extremely easy. In most cases, the application takes about five minutes to complete from start to finish.

Click herefor a detailed write-up of their coverage.

 

3) Royal Neighbors of America

  • Coverage options: $7,000 -$30,000
  • New applicant age range: 50-75
  • 2-year waiting period: no (subject to underwriting approval)
  • A.M. Best rating: A (excellent)
  • First year in business: 1895
  • Phone number to apply: 1-800-644-2926

Royal Neighborsisn’t a household name, but they have an excellent final expense program. Financially, they are just as sound as any other company that you see on TV.

Their product will accept a lot of very high-risk health issues. If your brother or sister has diabetes, Royal Neighbors is the carrier for them.

Click herefor a detailed write-up of their coverage.

 

4) American Amicable

  • Coverage options: $2,500-$35,000 (varies by age)
  • New applicant age range: 50-85
  • 2-year waiting period: no (subject to underwriting approval)
  • A.M. Best rating: A (excellent)
  • First year in business: 1910
  • Phone number to apply: 1-800-644-2926

American Amicable has a smooth application process that yields an immediate underwriting decision within about 10 mins. For smokers, their rates are among the lowest on the market.

They accept a lot of common health issues, so getting your sibling qualified with them is probable.

Click herefor a detailed write-up of their coverage.

 

5) AIG

  • Coverage options: $5,000 -$25,000
  • New applicant age range: 50-80
  • 2-year waiting period: yes
  • M. Best rating: A+ (superior)
  • First year in business: 1919
  • Phone number to apply: 1-800-644-2926

AIG’s policy is a guaranteed issue, so there are no health or lifestyle questions. AIG cannot deny your sibling. The downside is the 2-year waiting period (since it’s guaranteed acceptance).

As we mentioned earlier in this article, sometimes, a guaranteed issue policy is your only option. If your sibling falls in that category, AIG is the burial insurance company you need.

Click herefor a detailed write-up of their coverage.

 

How Choice Mutual can help you

Suppose you’re considering buying final expense insurance on a sibling. In that case, we can take the headache out of this process and help you save money.

We’re an independent agency that represents over 15 differently highly rated final expense life insurance companies.

Our allegiance is to you, not the insurance companies. Our goal is to match you with whichever carrier will offer your brother or sister the best deal.

It does not cost you anything to use our service.In addition, the insurance doesn’t cost more.

Well over 90% of burial insurance companies do not sell their coverage directly. They rely on agencies such as us to sell their products.

If you call us, one of our agents will ask you a few questions to determine which company would offer your sibling the best plan at the best price. Then they will assist you with the entire application from start to finish.

After your policy is issued, we’ll still always be here for any ongoing service issues you may need.

We have thousands of many satisfied customers. Check out some of the reviews below. These are real clients of ours who were more than happy.

You can reach us at 1-800-644-2926.

 

Frequently asked questions

Below are the most commonly asked questions regarding funeral insurance on siblings.

 

Can I buy burial insurance for my brother?

Yes, you can buy burial insurance coverage on your brother provided the consent to the policy. It’s perfectly acceptable that you pay for the insurance. However, the companies still require their signature on the application as affirmation that they agree to the policy being issued.

 

How do you get burial insurance for a sibling?

Buying burial insurance for a sibling is no different from buying coverage for yourself. The only difference is, two signatures (yours and theirs) are needed on the application instead of one. Even though you’re paying for it, their signature is still required since they are the insured.

 

Can you buy burial insurance for someone else?

You can buy burial insurance on someone else, but not without their knowledge and consent. It’s illegal to buy any form of life insurance on another individual without their participation in the application process.

 

How much does final expense insurance cost for a sibling?

Most people pay $50-$100 per month for a final expense policy. Remember that prices will be determined based on how much coverage you buy, your sibling’s age, health, and gender.