USAA burial insurance is available to everyone regardless of their military status.

But how does their coverage compare to other providers?

In this article, you’ll learn how USAA final expense insurance works, the limitations, and see price estimates.

 

How Does USAA Burial Insurance Work?

The primary policy that USAA offers to cover funeral expenses is a guaranteed issue whole life plan.

USAA and Mutual of Omaha developed a partnership for this product. USAA doesn’t actually underwrite the coverage.

Mutual of Omaha is the actual insurance provider.

Tip:
Whether you buy through USAA or directly from Mutual of Omaha, there is no difference in the policy.

There are no health questions to answer because your acceptance is guaranteed. Because you cannot be denied due to health issues, there is a two-year waiting period.

Any non-accidental death during the first 24 months will only result in a refund of your premiums plus 10% interest. You must live at least two years before the policy will pay out the full death benefit.

The policy proceeds will be disbursed as a tax-free cash payment. The money can be paid to loved ones or funeral home.

USAA funeral insurance does not dictate where you have your funeral carried out or how the money is to be spent. All the policy does is provide the funding for your funeral home so you don’t leave a financial burden on your loved ones.

Below is a table that outlines all the fine print and policy limitations.

 

USAA Final Expense Insurance Details
Coverage Options$2,000-$25,000
($5,000 in Washington)
Age Of Availability45-85
(50-75 in New York)
Policy TypeWhole Life Insurance
Policy DurationLifetime
Fixed PremiumsYes
Health QuestionsNo
Medical ExamNo
2-Year Waiting PeriodYes
Underwriting ClassGuaranteed Acceptance
Life Insurance
States Where AvailableAll except Montana

 

How Much Does USAA Final Expense Insurance Cost?

Generally, the typical cost of a USAA burial policy is $50-$150 per month for about $10,000 in coverage. The final rate is calculated by your exact age, how much coverage you buy, and your gender. Your health and lifestyle do not affect the price.

Below is a table that outlines some monthly sample rates. Please remember that your specific age determines the price of final expense insurance.

 

AgeFemale $10,000Male $10,000Female $25,000Male $25,000
45$27.90$36.40$68.25$89.50
50$30.40$40.20$74.50$99.00
55$37.50$45.40$92.25$112.00
60$42.70$56.90$105.25$140.75
65$50.00$68.50$123.50$169.75
70$63.90$86.70$158.25$215.25
75$88.50$113.30$219.75$281.75
80$126.90$157.10$315.75$391.25
85$157.70$192.70$392.75$480.25

 

Pros And Cons

Every burial insurance program has both an upside and downside. USAA’s burial life insurance is no exception.

If you want or need a guaranteed life insurance policy, USAA is a great choice.

AAA final expense coverage is the only guaranteed issue policy that is potentially better.

However, most people can qualify for a policy that has health questions.

Buying a policy with underwriting will lead to lower prices and life insurance coverage with no waiting period.

Tip:
Getting final expense insurance with pre-existing conditions is generally possible. By far, most health problems are insurable. It’s typically just a matter of finding the right company accepting your particular health issues.

If you have dire health issues such as dialysis or dementia, USAA’s coverage is an excellent choice. Otherwise, you’ll want to seek out other life insurance companies to cover the cost of a funeral.

Below is a table outlines an overview of the pros and cons of USAA’s coverage of burials.

 

ProsCons
Guaranteed acceptance2-year waiting period before you're insured
Lifetime coverageMuch lower rates available by plans with underwriting
Fixed premiumsNo coverage available in Montana
Can buy small amounts of coverageCannot buy more than $25,000 in coverage
No medical examNo coverage available under 45
No health questions
Backed by a strong insurance carrier
Usually is the cheapest guaranteed issue coverage on the market

 

Better Options To Consider

There are very few people who genuinely need a guaranteed acceptance policy. Therefore, USAA funeral insurance is rarely the best option for most people.

Below are five burial insurance companies to consider that will probably provide better coverage for you and your family.

 

1) Mutual of Omaha

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

 

Mutual of Omaha burial insurance that has no waiting period is only available through licensed insurance agents.

You cannot buy Living Promise directly from Mutual of Omaha.

To qualify, you do need to answer health questions. If approved, you’ll be fully insured the day you make your first payment.

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:

 

2) Aetna

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

 

Aetna is likely the best company for you if you’re a senior over 80 who needs life insurance. Shockingly, they offer life insurance up to age 89.

Aetna burial insurance is very accepting of various high-risk medical issues. If you’re approved, there is no waiting period.

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:

 

3) Royal Neighbors of America

Founding Year: 1895
A.M. Best
A
Excellent
BBB
A+
98-100
Brochure Sample Policy Sample Application

 

Royal Neighbors of America doesn’t advertise on TV, so their name is unfamiliar to most people. Don’t let that dissuade you from considering them.

They have been in business for over 100 years and have A rating’s across the board.

Their final expense coverage is well priced and has no waiting period.

Product
Details
Policy Type: Whole Life Insurance
New Applicant Age Range: 50-80
2-Year Waiting Period: No (subject to underwriting approval)
Coverage Amount Range: $7,000-$30,000
States Available: All States
(except AK, AL, HI, LA, MA, NH, NY)
Product
Benefits
Premiums Stay the Same Forever: Yes
Builds Cash Value: Yes
Policy Duration: Lifetime
Optional Riders: None
Application
Details
Where to Apply: Agencies licensed to sell Royal Neighbors 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
Common conditions still eligible for no waiting period coverage:

 

4) American Amicable

Founding Year: 1910
A.M. Best
A
Excellent
BBB
A+
97-100
Brochure Sample Policy Sample Application

 

American Amicable is another insurance provider that isn’t a household name. They have been in business for over a century and have an A rating with A.M. Best.

Particularly for smokers, they have well-priced final expense insurance for seniors.

Product
Details
Policy Type: Whole Life Insurance
New Applicant Age Range: 50-80
2-Year Waiting Period: No (subject to underwriting approval)
Coverage Amount Range: $2,500-$35,000 (varies by age)
States Available: All States (except CT, ME, MT, NH, NY, VT)
Product
Benefits
Premiums Stay the Same Forever: Yes
Builds Cash Value: Yes
Policy Duration: Lifetime
Optional Riders: None
Application
Details
Where to Apply: Agencies licensed to sell American Amicable 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
Common conditions still eligible for no waiting period coverage:

 

5) Transamerica

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

 

Transamerica burial insurance is one of the few carriers that offer no waiting period to people with chronic conditions such as COPD.

All around, they have some of the lowest prices on the market.

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: