Casey BondContributor
Casey Bond is a seasoned personal finance writer and editor. In addition to Forbes, her work has appeared on HuffPost, Business Insider, Yahoo! Finance, MSN, The Motley Fool, U.S. News & World Report, TheStreet and more. Casey is also a Certified...
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Casey BondContributor
Casey Bond is a seasoned personal finance writer and editor. In addition to Forbes, her work has appeared on HuffPost, Business Insider, Yahoo! Finance, MSN, The Motley Fool, U.S. News & World Report, TheStreet and more. Casey is also a Certified...
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Written By
Casey Bond
Casey BondContributor
Casey Bond is a seasoned personal finance writer and editor. In addition to Forbes, her work has appeared on HuffPost, Business Insider, Yahoo! Finance, MSN, The Motley Fool, U.S. News & World Report, TheStreet and more. Casey is also a Certified...
See Full Bio
Casey BondContributor
Casey Bond is a seasoned personal finance writer and editor. In addition to Forbes, her work has appeared on HuffPost, Business Insider, Yahoo! Finance, MSN, The Motley Fool, U.S. News & World Report, TheStreet and more. Casey is also a Certified...
See Full Bio
Contributor
Michelle MegnaLead Editor, Insurance
Michelle is a lead editor at Forbes Advisor. She has been a journalist for over 35 years, writing about insurance for consumers for the last decade. Prior to covering insurance, Michelle was a lifestyle reporter at the New York Daily News, a magazine...
See Full Bio
Michelle MegnaLead Editor, Insurance
Michelle is a lead editor at Forbes Advisor. She has been a journalist for over 35 years, writing about insurance for consumers for the last decade. Prior to covering insurance, Michelle was a lifestyle reporter at the New York Daily News, a magazine...
See Full Bio
Michelle Megna
Michelle MegnaLead Editor, Insurance
Michelle is a lead editor at Forbes Advisor. She has been a journalist for over 35 years, writing about insurance for consumers for the last decade. Prior to covering insurance, Michelle was a lifestyle reporter at the New York Daily News, a magazine...
See Full Bio
Michelle MegnaLead Editor, Insurance
Michelle is a lead editor at Forbes Advisor. She has been a journalist for over 35 years, writing about insurance for consumers for the last decade. Prior to covering insurance, Michelle was a lifestyle reporter at the New York Daily News, a magazine...
See Full Bio
Fact Checked
& 1 other
Updated: Jul 29, 2024, 12:07pm
Editorial Note: We earn a commission from partner links on Forbes Advisor. Commissions do not affect our editors' opinions or evaluations.
Burial insurance is a type of life insurance designed specifically to pay for final expenses. It is sometimes called funeral insurance or final expense insurance. You may be looking at this type of life insurance if you want to provide a relatively small amount of money that your family can use to pay for a funeral and some additional small expenses.
We evaluated insurers and found only two that we would recommend as the best burial life insurance companies.
Read more
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Show Summary
- Summary: Compare the Best Burial Insurance Companies
- Best Burial Insurance Companies of 2024
- Types of Burial Insurance
- How Much Is Burial Insurance?
- Factors That Affect the Cost of Burial Insurance
- Methodology
- Other Burial Life Insurance Companies We Rated
- Best Burial Insurance Frequently Asked Questions (FAQs)
Summary: Compare the Best Burial Insurance Companies
| Our Expert Take | Company | Company - Logo | Forbes Advisor Rating | Forbes Advisor Rating | Policy name | AM Best financial strength rating | Coverage minimum | Learn More CTA text | Learn more CTA below text | Learn More |
|---|---|---|---|---|---|---|---|---|---|---|
| Best for low complaints | AARP/ New York Life |  | 5.0 |  | Guaranteed Acceptance Life Insurance | A++ (Superior) | $5,000 | See Plans | Compare quotes from participating carriers via Policygenius.com | |
| Best for low rates | State Farm |  | 5.0 |  | Guaranteed Issue Final Expense Insurance | A++ (Superior) | $10,000 | See Plans | Compare quotes from participating carriers via Policygenius.com |
How We Chose the Best Burial Insurance
Best Burial Insurance Companies of 2024
BEST FOR LOW COMPLAINTS
AARP/New York Life
5.0
Our ratings are calculated based on fees, rates, rewards and other category-specific attributes. All ratings are determined solely by our editorial team.
Policy name
Guaranteed Acceptance Life Insurance
Coverage minimum/maximum
$5,000/$25,000
Eligible ages
50-80 (50-75 in New York)
Compare quotes from participating carriers via Policygenius.com
Guaranteed Acceptance Life Insurance
$5,000/$25,000
50-80 (50-75 in New York)
Our Expert Take
We think AARP is a solid choice for burial insurance due to its low complaint level compared to competitors. It is also noteworthy for its relatively competitive cost. AARP’s life insurance program is available to AARP members and is underwritten by New York Life Insurance.
More: AARP Life Insurance Review
Pros & Cons
- Instant quotes available online.
- AARP burial insurance is also available to spouses/partners ages 45-80 of AARP members (spouses ages 50-75 in New York).
- New York Life has earned AM Best’s top financial strength rating of A++.
- You must be an AARP member to buy the life insurance, which will add some cost. You can join AARP when you buy its burial insurance and the other perks of AARP membership can offset the membership fee.
- May not be available in all states.
AARP/New York Life Policy Details
- AM Best:A++ (Superior)
- Average cost for a $20,000 policy:$166 per month
- Death benefit waiting period:This policy has a graded death benefit. If death is the result of natural causes within the first two policy years, the death benefit will be 110% of premiums paid. Full benefits are paid from policy day one if death is accidental.
BEST FOR LOW RATES
State Farm
5.0
Our ratings are calculated based on fees, rates, rewards and other category-specific attributes. All ratings are determined solely by our editorial team.
Policy name
Guaranteed Issue Final Expense insurance
Coverage minimum/maximum
$10,000/$15,000
Eligible ages
50-80 (50 to 75 in New York)
Compare quotes from participating carriers via Policygenius.com
Guaranteed Issue Final Expense insurance
$10,000/$15,000
50-80 (50 to 75 in New York)
Our Expert Take
We like State Farm for having competitive burial insurance rates and a low level of complaints against the company about life insurance.
More: State Farm Life Insurance Review
Pros & Cons
- Instant quotes available online.
- Has earned AM Best’s top financial strength rating of A++.
- Small window of coverage amounts ($10,000 to $15,000), although customizable to any amount in between.
- Not available to residents of California, Massachusetts, New York or Rhode Island.
State Farm Policy Details
- AM Best:A++ (Superior)
- Average cost for a $20,000 policy:$148 per month
- Death benefit waiting period:This policy has a graded death benefit. If death is the result of suicide within the first two policy years, the death benefit will be the return of premiums paid without interest. If death is from natural causes, the death benefit will be the return of premiums plus interest.
Types of Burial Insurance
There are three main types of burial insurance, also called final expense insurance and funeral insurance.
- Simplified issue life insurance. If you apply for simplified issue life insurance you’ll answer some questions about your health, but you won’t be required to take a medical exam.
- Guaranteed issue life insurance. If you buy a guaranteed issue life insurance policy to pay for your burial, you won’t have to answer any health questions, there’s no medical exam, and you can’t be denied coverage.
- Pre-need insurance. Pre-need insurance is sometimes available from the funeral home where you plan to have your services. You contract with the funeral home for the services you want.
How Much Is Burial Insurance?
The average cost of burial insurance for a $20,000 policy is $140 per month or $1,680 per year, based on our analysis. While that may seem pricey, the national median funeral cost with a viewing and burial is $7,848, according to the National Funeral Directors Association.
Average Burial Insurance Cost for $20,000 in Coverage
| Buyer | Average monthly cost |
|---|---|
Male age 60 | $119 |
Male age 70 | $174 |
Female age 60 | $97 |
Female age 70 | $137 |
Source: Forbes Advisor research
Factors That Affect the Cost of Burial Insurance
The cost of a burial insurance policy for you may be different than the cost of the same policy for someone else. Insurance companies use certain factors to determine cost, such as:
- Age. The older you are, the higher your premiums.
- Amount of coverage. The higher the coverage, the higher the premium.
- Gender. Men often pay higher costs for life insurance than women.
- Health. If your burial insurance is a simplified issue policy, you may be required to answer some health questions to help the insurer determine whether or not to offer you a policy.
EXPERT TIPS
How Do I Get the Best Burial Insurance?
Ashlee Valentine
Insurance Editor
Les Masterson
Insurance Editor
Penny Gusner
Insurance Senior Writer
Look Into Coverage Limits
When shopping for a burial insurance policy, I suggest looking at coverage limits. Burial insurance policies usually have low coverage amounts, so if you want the most coverage you’ll want to compare maximum coverage amounts among insurers.
Ashlee Valentine
Insurance Editor
Consider Your Final Wishes
I recommend considering your final wishes when deciding how much burial insurance to buy. The costs will be much different if you want the most basic burial or cremation with no funeral service than if you want a large, extravagant funeral with an expensive casket.
Les Masterson
Insurance Editor
Look at Insurance Company Ratings
I recommend shopping mainly on price, but also make sure the insurance company has favorable ratings, like low customer complaints and a high AM Best rating. This will help me feel confident that my beneficiaries will have no trouble getting the death benefit.
Penny Gusner
Insurance Senior Writer
Methodology
We chose the best burial insurance companies based on the following measurements.
- Cost (50% of score): We analyzed burial insurance costs. Only life insurance companies with online quotes for burial insurance were included in our analysis.
- Complaints (50% of score): We factored in complaints about life insurance based on data from the National Association of Insurance Commissioners. Complaint data reflects upheld complaints around the country, and a high complaint level knocked some companies out of our top picks.
Compare Life Insurance Companies
Compare Policies With 8 Leading Insurers
Other Burial Life Insurance Companies We Rated
| Company | Policy name | |
|---|---|---|
Mutual of Omaha | Guaranteed Whole Life Insurance |  |
Colonial Penn | Guaranteed Acceptance Life Insurance |  |
TruStage | Guaranteed Acceptance Whole Life Insurance |  |
Best Burial Insurance Frequently Asked Questions (FAQs)
What is a death benefit?
A death benefit is the amount of money paid by your life insurance company to your beneficiaries when you die.
How do I file a burial insurance claim when the insured person passes away?
With most companies you can either start a claim online or call the claims department. Check the company’s website for options. Be prepared to submit documentation, including a death certificate.
Does a beneficiary have to use the life insurance payout for a funeral?
Beneficiaries don’t have to use a life insurance payout to pay for your funeral. That’s why it’s vital to choose a life insurance beneficiary you trust who will respect and follow your instructions on how to use the life insurance payout.
What is the difference between burial insurance and life insurance?
Burial insurance, also called final expenses insurance, is one type of life insurance. A burial insurance policy generally has a small death benefit. It could be in the form of guaranteed issue life insurance or simplified issue life insurance. Neither type of policy requires a medical exam. Simplified issue requires that you answer health-related questions and may reject you, while a guaranteed issue policy doesn’t have health questions and doesn’t deny applicants.
These policies are meant as a way to pay for a funeral and final expenses and are typically small whole life insurance policies.
What does burial insurance cover?
Burial insurance can help your beneficiaries pay for the costs for your final expenses such as:
• Burial plot
• Burial vault
• Caskets
• Cremation
• Flowers
• Funeral home services
• Grave opening and closing
• Headstones
• Obituary notices
• Transportation
• Urn services
Burial insurance can also be used to pay outstanding debts you leave behind after you pass away.
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Information provided on Forbes Advisor is for educational purposes only. Your financial situation is unique and the products and services we review may not be right for your circ*mstances. We do not offer financial advice, advisory or brokerage services, nor do we recommend or advise individuals or to buy or sell particular stocks or securities. Performance information may have changed since the time of publication. Past performance is not indicative of future results.
Forbes Advisor adheres to strict editorial integrity standards. To the best of our knowledge, all content is accurate as of the date posted, though offers contained herein may no longer be available. The opinions expressed are the author’s alone and have not been provided, approved, or otherwise endorsed by our partners.
