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.

 

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.

Tip:
It’s common to hear cremation insurance, also referred to as “burial insurance,” “funeral insurance,” “end of life insurance,” or “final expense insurance”. All of these terms have the same meaning.

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
45F: $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
50F: $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
55F: $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
60F: $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
65F: $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
70F: $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
75F: $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
80F: $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
85F: $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
86F: $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
87F: $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
88F: $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
89F: $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.

Tip:
Working with independent agencies such as Choice Mutual is free. Their services cost you nothing, and the insurance doesn’t have a higher rate because you bought via a broker. Additionally, most final expense insurance providers only sell their coverage via agencies.

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

Founding Year: 1909
A.M. Best
A+
Superior
BBB
A+
99-100

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 3 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

Founding Year: 1853
A.M. Best
A
Excellent
BBB
A+
98-100
Brochure Sample Policy Sample Application

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: 5 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

Founding Year: 1904
A.M. Best
A
Excellent
BBB
B
84-100
Brochure Sample Policy Sample Application

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.

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 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.