How Does Term Life Burial Insurance Work?
A term life burial insurance policy will cover you for a limited period of time. Term life, by design, is a type of life insurance that expires after a defined period (such as 10 or 20 years) or until a certain age (such as 80 or 90). How long the policy lasts varies by insurer.
Once you reach the end of the policy’s term, the coverage expires, and you’re no longer insured. In nearly every case, once the policy terminates, the insurer keeps your premiums.
While a term life policy is active, the insurer will pay out the entire death benefit, tax-free, to your beneficiaries upon your death. They are free to spend that money without any restrictions. That means the money can be used for funeral bills, medical expenses, debts, or left as a financial gift.
It’s very standard for insurers to only accept new term life burial insurance applications from seniors 75 or 80. No insurer will issue a new term life plan once you’re over 80.
Term Life Burial Insurance Vs Whole Life Burial Insurance
Since each type of policy has unique pros and cons, it’s important to conduct a thorough comparison between whole life burial insurance and term life insurance. Below is a chart outlining the differences between the two options.
| Policy Features | Term Life | Whole Life |
|---|---|---|
| Coverage duration | Usually until age 80 | Forever |
| Medical exam | Sometimes | Never |
| Waiting period | Never | Sometimes |
| Typical coverage limits | $5,000-$100,000 | $2,000-$50,000 |
| Affordability | Cheapest | Most costly |
| High risk pre-existing conditions accepted | No | Yes |
| Fixed premiums | No | Yes |
| Guaranteed acceptance option | No | Yes |
| Builds cash value | No | Yes |
How Much Does Term Life Burial Insurance Cost?
Term life final expense insurance policies do not have locked-in premiums. On the contrary, the premiums increase every five years. Unless you want to buy a traditional term life insurance policy (which typically requires $25,000 or more in coverage and has level premiums), expect a regular price increase.
That said, the cost of term life final expense insurance depends on factors such as your age, gender, health history, tobacco or alcohol use (if any), and the amount of coverage. Below are sample prices for term life and whole life plans to show how they compare in cost.
Best Term Life Burial Insurance Policies
There are very few burial insurance providers that offer term life plans. Below are the three best ones to consider.
- $10K Policy Cost$21.00/month*
- New Applicant Ages50-74
- Death Benefit Options$10,000-$150,000
- 2-Year Waiting PeriodNo
- $10K Policy Cost$24.33/month*
- New Applicant Ages18-75 or 80 (varies by state)
- Death Benefit Options$5,000-$100,000
- 2-Year Waiting PeriodNo
- $10K Policy Cost$27.80/month*
- New Applicant Ages18-69
- Death Benefit Options$5,000-$300,000
- 2-Year Waiting PeriodNo
Qualifying For A Term Life Final Expense Policy
To qualify for a term life burial policy, you almost certainly won’t have to take a medical exam. However, you must answer health questions. There are no guaranteed-acceptance term life insurance policies available from any company.
Your eligibility is based on A) your answers to the health questions, B) your medication history, and C) the various health issues you’ve been diagnosed with.
The primary downside of a term life final expense policy is the underwriting criteria. If you have a history of high-risk health issues such as diabetes, heart attacks, strokes, or cancer, you’ll likely be declined.
Term life policies carry a higher risk for insurers because they’re cheaper. To manage that risk, they have much stricter underwriting compared to whole life. That’s why seniors with pre-existing conditions may find it difficult to qualify for a term life burial insurance policy.
If you apply and are declined for a term life option, you should seek out a whole life burial insurance product. The vast majority of seniors can find at least one insurer that will approve them for a whole life final expense policy with no waiting period.
As a last resort, there are guaranteed issue whole life policies that will not decline you for any reason. Granted, they come with a two-year waiting period, but that’s better than having no policy at all.
To illustrate the underwriting differences among the types of policies, see the table below. It outlines some of the most common health issues seniors encounter and whether or not they constitute a decline or approval for both policy types.
| Health Condition | Term Life Burial Insurance | Whole Life Burial Insurance |
|---|---|---|
| Diabetes-diet controlled without medication | Acceptable | Acceptable |
| Diabetes- oral medication only | Likely acceptable | Acceptable |
| Diabetes- insulin required | Decline | Acceptable |
| Diabetes-uncontrolled | Decline | Acceptable |
| Diabetes-with complications | Decline | Acceptable |
| Hypertension | Acceptable | Acceptable |
| High cholesterol | Acceptable | Acceptable |
| Heart attack ≤ 5 years | Decline | Acceptable |
| Stroke ≤ 5 years | Decline | Acceptable |
| Cancer ≤ 5 years | Decline | Acceptable |
| COPD | Decline | Acceptable |
| Lupus | Decline | Acceptable |
| Psychotic disorders | Decline | Acceptable |
| Kidney disease | Decline | Acceptable |
| Liver diseases | Decline | Acceptable |
| Multiple sclerosis | Decline | Acceptable |
| Irregular heartbeat | Decline | Acceptable |
| Arthritis | Acceptable if self sufficient | Acceptable |
| Blood clots ≤ 5 years | Decline | Acceptable |
Is a Term Life Burial Insurance Policy Right For You?
The primary allure of a term life burial policy (as opposed to a whole life option) is the lower cost. While this is appealing, especially for seniors on a fixed income, you must consider the two following factors before making a final decision:
- The premium increase: The price will rise every five years. If the premium should increase one day to the point where it no longer fits in your budget, you’ll lose the coverage simply because you cannot afford it. If you’re on a fixed income, it’s highly advisable to opt for whole life insurance, as it has a fixed premium. While the initial premium for whole life is higher, at least you know it will forever fit in your budget.
- The termination date: A term life policy typically expires around age 80 (sometimes 90). If you outlive the policy, you’ll be left uninsured and without a financial vehicle to ensure your final expenses aren’t passed on to your family (which is exactly what you’re probably trying to avoid).
Frequently Asked Questions
If you’re approved for a term life burial policy, there will be no waiting period. No insurers offer term life plans with a waiting period. You’re either going to be approved for immediate coverage or declined altogether.
Many insurance companies offer renewable term life insurance policies. However, they are typically high-coverage plans that require $50,000- $100,000 or more. Most term life burial policies that offer coverage as low as $5,000 are not renewable. That means once the policy terminates, it cannot be continued. The coverage simply ends.
Some life insurance companies offer term life burial plans that can be converted to a whole life policy. For example, AARP’s term life final expense policies are convertible. It varies by insurer.
After a term life policy terminates, your options depend on your age and health. Generally speaking, though, you’ll have to buy an entirely new policy from the same or different insurer. Please note that if your term policy should expire while you’re in your 80s, there are still options. However, there are far fewer burial insurance options for those over 80 than for those at a younger age. Furthermore, life insurance options over 85 are even more limited, and there are no term life options after you reach age 86.
Our Insurance Review Methodology
Every company we review has an overall score that illustrates how well it stands out in the market relative to its competitors. These scores are not subjective. Instead, we utilize a defined 5-star scoring system that applies a weighted average of particular factors, all of which are outlined below and on our review methodology page.
Coverage
Strength
Complaint Index
Hold Time
We measure the price of a company’s most popular policy relative to its competitors’. The closeness of their cost to other companies determines the final score. Read a full breakdown of the price of coverage factor on our review methodology page.
Coverage
Coverage
Strength
Complaint Index
Hold Time
This factor assesses whether a company offers immediate coverage and, if so, how difficult it is to qualify for it. Read a full breakdown of the no waiting period coverage factor on our review methodology page.
Strength
Coverage
Strength
Complaint Index
Hold Time
A company’s financial strength is based on its rating with A.M. Best. Read a full breakdown of the financial strength factor on our review methodology page.
Complaint Index
Coverage
Strength
Complaint Index
Hold Time
The National Association of Insurance Commissioners’ complaint index measures an insurer’s frequency of consumer complaints compared to the rest of the market. The score the insurer receives is based on how it stacks up to the median score of other insurers. Read a full breakdown of the NAIC complaint index factor on our review methodology page.
Hold Time
Coverage
Strength
Complaint Index
Hold Time
The customer support hold time score is based on the average amount of time it takes a company to connect an existing policyholder to a human customer service agent. Read a full breakdown of the customer support hold time factor in our review methodology page.
Why trust Choice Mutual?
When we review products, our findings are unbiased and free of any influence from partnerships or methods of compensation. All findings, good or bad, are solely the derivative of our objective analysis of any given product or company.
As noted on our review methodology page, our researchers evaluate the financial stability of the insurer, policy costs, product limitations, state availability, customer satisfaction, waiting periods (if applicable), and other relevant factors. We aggregate all this cumulative data to develop objective overall scores based on predefined weighted factors.
In addition, a qualified expert who is well-qualified to speak on the matter will provide opinion-based feedback about the company or product being reviewed.
For over a decade, Choice Mutual has been an insurance agency specializing in final expense life insurance. Our expertise in this type of insurance is well documented in numerous authoritative publications, some of which are listed below:
Choice Mutual’s mission is to provide consumers with unbiased, expert commentary and explanations of the topics under discussion. We want our readers to be armed with information and tools not found anywhere else on the internet, so they can make an informed decision.
All content on this website is written by Anthony Martin, a licensed life insurance agent with over a decade of industry expertise, who has been quoted hundreds of times as an expert source by reputable news outlets.
Per our editorial guidelines, we have never used and will never use artificial intelligence to create our content. Every word printed on this website is produced and curated entirely by human beings who have firsthand experience with the subject matter.
- Nationally licensed life insurance agent with over 16 years of experience.
- Personal annual production that puts him in the top .001% out of all life insurance agents in the nation.
Anthony Martin is a nationally licensed insurance expert with over 16 years of experience and has personally served over 10,000 clients with their life insurance needs. He frequently authors entrepreneurial and life insurance content for Forbes, Inc.com, Newsweek, Kiplinger, and Entreprenuer.com. Anthony has been consulted as an expert life insurance source for dozens of high-profile websites such as Forbes, Bankrate, Reuters, Fox Business, CNBC, Investopedia, Insurance.com, Yahoo Finance, and many more.
- Nationally licensed life insurance agent with over 20 years of experience
- Best selling Amazon author.
Jeff Root is a nationally licensed life insurance expert with over 20 years of experience. He has personally helped over 3000 clients with their life insurance needs. Jeff is a best-selling Amazon author and the managing partner of a highly successful insurance brokerage that manages over 2,500 licensed insurance agents across the USA. He has been a featured life insurance source for prestigious websites such as Forbes, Bloomberg, MarketWatch, Nerdwallet, and many more.
- Nationally licensed life insurance agent with over 15 years of experience
- Best selling Amazon author of five insurance sales books.
David Duford is a nationally licensed insurance expert with over 15 years of experience. He has personally helped more than 1,500 clients buy life insurance. David has been featured as an expert source for highly authoritative publications such as A.M. Best and Insurancenewsnet. He also runs one of the largest YouTube channels to help aspiring insurance agents serve their clients better.
- Nationally licensed life insurance agent with over 20 years of experience
- Best selling Amazon author.
Jeff Root is a nationally licensed life insurance expert with over 20 years of experience. He has personally helped over 3000 clients with their life insurance needs. Jeff is a best-selling Amazon author and the managing partner of a highly successful insurance brokerage that manages over 2,500 licensed insurance agents across the USA. He has been a featured life insurance source for prestigious websites such as Forbes, Bloomberg, MarketWatch, Nerdwallet, and many more.
- Nationally licensed life insurance agent with over 15 years of experience
- Best selling Amazon author of five insurance sales books.
David Duford is a nationally licensed insurance expert with over 15 years of experience. He has personally helped more than 1,500 clients buy life insurance. David has been featured as an expert source for highly authoritative publications such as A.M. Best and Insurancenewsnet. He also runs one of the largest YouTube channels to help aspiring insurance agents serve their clients better.
