Burial Insurance or Funeral Insurance or Final Expense Insurance, is designed specifically to pay for end of life expenses, like funeral and burial costs. It involves paying a small amount every month. At the time of your death, your beneficiary receives a lump sum that may be used for burial and funeral costs or unpaid medical bills, debts. The amount left after paying for all these expenses may be used by the beneficiary however they see fit.
With funeral expenses ranging anywhere from $7000 to $10,000, burial insurance ensures that these costs are easy to bear for you and your loved ones.
Why should you consider a burial insurance?
- Gives your loved ones a quick pay-out
Death is often an unexpected event, meaning the costs can become a sudden burden to your family and loved ones. With burial insurance you don’t have to worry about them taking loans or using up their hard earned savings. Based on your burial insurance plan, you receive between $5000 and $40,000 to cover your end of life expenses.
- Applying for a plan is easy
The process for applying for a burial insurance plan is pretty straight forward. You don’t need to go through heaps of paperwork. You can apply from the comfort of your home, through email or over the phone. This eliminates any pressure you may experience during face to face conversations with a sales person.
- No physical exam required
Burial insurance plans do not require you to take any physical exam, you may have to fill out questionnaires on your health but that’s about it. Since burial insurance policies are designed to absorb heavy risks, you don’t have to worry about your health condition as you are very likely to qualify.
- Guaranteed acceptance, no health questions
There are some insurance companies that ask no health questions at all and guarantee acceptance as long as you meet the age requirements. But these “guaranteed insurance” policies have a catch:
- 24 month waiting period. All guaranteed insurance companies have this policy. If you pass away during the first 24 months, your beneficiaries are only refunded the premiums you paid with a little interest
- More cost per month. Since the insurance company is taking a greater risk insuring you, they charge more
- Almost everyone gets approved
Unlike traditional insurance, health doesn’t matter much in burial insurance. As long as you are 85 or below, you can easily qualify for many burial insurance plans.
How do you choose a burial insurance plan?
It can be very tedious and seemingly impossible if you don’t know what you are looking for. These are the three elements that will help you narrow down the perfect burial insurance plan for you:
- The insurance company is and has been reliable and financially stable. If the company is not financially stable, you are at the risk of them not honouring their obligation when you need them to.
- Immediate death benefit. Though there are certain conditions which require a 24 month waiting period, most plans offer immediate protection. Though immediate coverage is the goal, if it isn’t possible then you should aim for partial coverage during the first 24 months. If full or partial coverage during the first 24 months isn’t an option only then resort to a two year waiting period.
- The plan costs less than other plans from other insurance companies
Here is a list of the 8 best burial insurance companies in 2019.
- Sentinel Security Life
With over 70 years of experience, Sentinel offers different types of insurance plans. Since 1948 they have been helping families cover for burial and funeral costs. Today they have grown to improve their existing services and have added new ones like Life, Medicare Supplement and Annuity services.
They offer 3 different burial insurance plans.
- New Vantage I
This plan offers full coverage from day one and is affordable.
- New Vantage II
This plan is designed for clients with poor health. If you pass away during the first 12 months, you get 30% of the death benefit. If you pass away during the 12 to 24 period, you get 70% of the death benefit. After the 2 years you get the full death benefit.
- New Vantage III
This offers affordable coverage for those with poor health. If you pass away during the first 2 years, you get all the premiums paid an extra 10% of the premiums paid.
- Royal Neighbors Of America
With an outstanding track record spanning over 120 years, Neighbors of America was among the first insurance providers that insured women and children. With an A.M. rating of A- and an A+ from the Better Business Bureau, they are still one of the best insurance companies today. They accept clients between 50 and 85.
They have two burial insurance plans:
Based on your health, this may or may not be the best plan for you. Though it limits pay out of benefits during the first 2 years, it does offer some immediate protection.
This plan deals with diabetes and other health issues. The price is competitive and the underwriting is ultra-liberal.
They are available in all states except the following:
- New Hampshire
- New York
Founded in 1919, AIG has an A+ rating from A.M. and an A- rating from Better Business Bureau. AIG offers guaranteed issue life insurance, there are no medical questionnaires or assessments, your acceptance is guaranteed but there is a 2 year waiting period before the death benefit is paid. If you pass away during the first 2 years, AIG pays you 110% of the premiums paid. They accept clients between the ages of 50 and 85.
They offer 2 riders on every policy.
- Chronic illness rider
This allows you a lump sum payment if you become chronically ill.
- Terminal illness rider
If you are diagnosed with a terminal illness and have a life expectancy of 24 months or less, you get 50% of your death benefits early.
It is available in all states except
- New York
Founded in 1853, Aetna has an A rating from A.M. and an A+ rating from Better Business Bureau. Aetna is among the few companies that accepts new applicants aged 89, where 85 is the maximum age for most other insurance companies. They have three different burial insurance plans.
- Level Death Benefit Option
It has no waiting period and has the lowest premiums.
- Graded Plan
It has limited benefits during the first 2 years
- Modified Plan
It has a 2 year waiting period.
It is available in all states except:
- New York
- Liberty Bankers Life
Liberty Bankers was founded in 1958. They have a B++ A.M. rating and an A+ rating from Better Business Bureau. Liberty Bankers Life has unique burial policies. They offer full benefits from day one to clients with COPD, emphysema, liver diseases, or kidney diseases. Most insurance companies have a partial or full 24 month waiting period. They are also among the few companies that offer plans to people as young as 18. They accept clients 85 and below.
They offer the following optional riders:
- Children Term
- Accidental Death & Dismemberment
- Grandchildren Term
- American Amicable
Founded in 1910, they have an A rating from both A.M. and Better Business Bureau. American Amicable offers burial insurance to certain situations. They offer cheaper options to cigarette smokers. They include 2 no cost riders on most plans. They accept clients 85 and below.
- Terminal Illness Accelerated Benefit Rider
If you are diagnosed with a terminal illness and are given a life expectancy of 12 months, 24 months in some states, you get 100% of your death benefit. This rider is included with every plan.
- Accelerated Benefits Rider- Confined Care
If you are confined to a nursing home 30 days after the policy is issued, you get a 5% of the face amount per month. There are some states where this rider is not applicable.
They also offer other riders a minimal extra premium.
- Accidental Death Rider
- Grandchild Rider
- Children’s Insurance Agreement
They are available in all states except:
- New Hampshire
- New York
- Prosperity Life Group
Founded in 1938, they have an A- rating from A.m. and an A+ rating from Better Business Bureau. Prosperity Life Group accepts a lot of high risk health issues. They have a very simple application process, you can be accepted in 15 minutes! They offer immediate coverage where others may require a 24 moth waiting period. It applies a tobacco rating on only those who smoke cigarettes, non-cigarette smoking nicotine or tobacco users get a non-tobacco rating. They accept clients 85 and below.
Prosperity has 3 different plans, you qualify for the plan based on your health.
- Level Benefit Plan
This plan offers the cheapest premium and has no waiting period, you are protected from day one.
- Graded Benefit Plan
It pays the full death benefit during the first 2 years if the cause of death is an accident. It has limited pay out during the first 2 years in case of a non-accidental death. If you pass away during the first 12 months, you get 30% of the death benefit. If you pass away during the 12 to 24 period, you get 70% of the death benefit. After the 2 years you get the full death benefit.
- Modified Benefit Plan
This is Prosperity’s highest risk plan. It has a 2 year waiting period and costs the most of the three plans. If you pass away during the first 12 months due to natural causes, you get 110% of all premiums paid. If you pass away during the 12 to 24 period, you get a 231% of all premiums paid. After two years the full death benefit is paid. In case the cause of death is an accident, you get a 100% of the face amount during the first 2 years.
It is available in all states except the following:
- North Dakota
- South Dakota
- American Income Life Insurance
American Life Insurance has been in business since 1951. It is an international company operating in the US, Canada and New Zealand. They have an A+ rating from A.M. and Better Business Bureau. Their representatives meet clients at their homes.
They offer a terminal illness rider with every insurance policy at no extra costs.
They have a rich history of working with local leaders to advocate issues that are important to all working people. Their insurance policies protect members of labour unions, credit unions, associations and their families.