- Backed by New York Life, one of the country’s largest life insurers.
- No medical exam.
- Accelerated death benefits included.
4 Best Burial Insurance Companies in September 2024
![best burial insurance companies](/personal-finance/static/c528e7b0e598e8090494e16a54ca950d/8ae18/best-burial-insurance-companies.jpg)
Our evaluations and opinions are not influenced by our advertising relationships, but we may earn a commission from our partners’ links. This content is created by TIME Stamped, under TIME’s direction and produced in accordance with TIME’s editorial guidelines and overseen by TIME’s editorial staff. Learn more about it.
If you imagine the typical life insurance buyer, you may think of a young couple with a newborn and a mortgage. However, people at other stages of life can also benefit from life insurance, including seniors whose children are grown and whose mortgages are long since paid back.
Burial insurance policies are typically marketed to seniors as a way to set aside money for end-of-life expenses, such as a funeral, burial, or cremation. The coverage is sometimes delicately referred to as “final expense coverage.”
These policies are usually easy to buy. Each company in our review offers burial insurance without a medical exam (so those with pre-existing conditions can qualify for coverage) and online price quotes.
$1,020
Up to $25,000
50 to 80
Ranked #8
The American Association of Retired People (AARP) offers group burial insurance through a partnership with New York Life. The program does not require a medical exam or answering health questions.
Once coverage is in force, there’s a two-year limited benefit period in which full benefits are paid for accidental death, but if the death is from natural causes, only 110% of the premiums are paid. However, an accelerated death benefit rider is included. The policyholder can access up to half of their death benefit if they’re diagnosed with a terminal illness and given a life expectancy of 24 months. Benefits and premiums are guaranteed for life, and the policy is considered paid off when the policyholder reaches age 95. The program also offers a cash value feature.
AARP/New York Life Burial Insurance lacks real standout features, but it is a solid plan. If you or your spouse are an AARP member looking for final expense coverage, it’s worth a look.
$931
$5,000 to $25,000
50 to 80
N/A
Corebridge Financial may be a new company on the life insurance scene, but it has a strong heritage. Formerly known as AIG Direct, Corebridge was formed when AIG—one of the world’s largest insurers—spun off its life insurance business in 2022. It appears as though the company is still in transition, as many of its web pages are still branded as “AIG Direct.”
Corebridge guaranteed-issue whole life insurance policies for final expenses require no medical exam, with stable premiums and benefits throughout the policy's life. The plan requires a two-year waiting period.
If the policyholder dies of natural causes in the first two years of coverage, Corebridge will pay the beneficiaries 110% of the premiums paid. If the death is accidental, the company pays the full death benefit. Corebridge also offers a simplified issue policy that provides full benefits from day one, but it requires a medical questionnaire.
Corebridge Financial includes two accelerated death riders with its guaranteed-issue policy. The first allows the policyholder to receive premiums paid if they can no longer perform two of six “daily living tasks” or have been diagnosed with dementia or Alzheimer’s. The second allows the policyholder to access up to 50% of the death benefit if they’re diagnosed with a terminal illness and have been given a life expectancy of 24 months or less.
743
$2,000 to $50,000
45 to 85
Ranked #4
Mutual of Omaha titles its burial insurance policy “Living Promise Whole Life.” The company offers both graded and level benefit plans. The former provides full coverage only after a two-year waiting period, similar to other plans in this review, while the latter offers full coverage from day one.
However, the company website has few details about the level plan, and our quote—the lowest cost in our review—is based on a plan with graded benefits. Note that the graded benefit plan does provide 110% of the premium paid in the first two years unless the death is accidental.
Living Promise Whole Life requires no medical exam; it guarantees acceptance and benefits and rates never change over the policy’s life. The plan offers optional accelerated death benefits for nursing home confinement, chronic illness, and terminal illness, along with a rider for accidental death.
$809
$10,000 to $15,000
45 to 80
Ranked #1
State Farm Guaranteed Issue Final Expense life insurance offers stable premiums and benefits. The policyholder does not need to submit to a medical exam or answer any health questions. The company limits benefits during the first two years of coverage. If the death is due to natural causes, the beneficiary will receive only the paid premium plus interest.
One of the country’s best-known insurance brands, State Farm is highly regarded for customer satisfaction. The company took the top spot in the J.D. Power 2023 U.S. Individual Life Insurance Study for overall customer satisfaction, beating out 21 other companies.
Company | Annual cost* | Coverage range | Age range | AM Best | J.D. Power | Best for |
---|---|---|---|---|---|---|
AARP/New York Life | $1,020 | Up to $25,000 | 50 to 80 | A++ | Ranked #8 | Group coverage |
Corebridge Financial (formerly AIG Direct) | $931 | $5,000 to $25,000 | 50 to 80 | A | N/A | Accelerated benefits |
Mutual of Omaha | $743 | $2,000 to $50,000 | 45 to 85 | A+ | Ranked #4 | Lowest cost |
State Farm | $809 | $10,000 to $15,000 | 45 to 80 | A++ | Ranked #1 | Customer satisfaction |
*Taken from online quotes
We gathered information about four leading providers of burial insurance. Our price quotes were based on a 62-year-old male living in Ohio. Policy information, including available coverage levels, policy rules, riders, and benefits, came primarily from publicly available information published online by the insurance companies.
When shopping for burial insurance, here are a few things to consider.
The insurers in our review offer differing coverage levels. You should choose an insurer that offers the amount of coverage you believe you need for your final expenses.
All of the insurers in our review offer guaranteed acceptance policies. These policies do not require a medical exam or questionnaire and typically accept customers with pre-existing conditions. This is an obvious plus if you’re uncomfortable submitting to a medical exam.
Burial insurance policies typically include a waiting period before paying out the full benefit. If the policyholder passes away during that period, the policy may pay only include partial benefits. All of the policies in our review offer a two-year waiting period during which you get a reduced death benefit (typically equal to the amount of premium paid plus 10%).
While all of the companies in our review are financially solid performers, not all insurers are alike. A company’s financial strength rating can give you quick insight into how well a company is run and whether you can have confidence in its ability to pay your claim when the time comes. AM Best rates companies’ financial strength with grades ranging from A++ (Superior) to D (Poor).
You can also get a sense of a company’s commitment to customer satisfaction through third-party rankings, such as those compiled by J.D. Power.
Whereas insurance was once sold almost exclusively through agents and brokers, today's product is often conveniently sold online. However, some people may prefer the guidance of an expert when purchasing something as crucial as life insurance. All of the insurers in our review have both online quotes and toll-free support lines and/or local agents.
According to the National Funeral Directors Association (NFDA), the median cost of a funeral with a burial is approximately $7,848. A cremation brings that down to $6,971. Either way, it’s a significant expense to leave to mourning loved ones.
The good news is that burial insurance isn’t the only option. Consider funding your final expenses through one of these means.
Some funeral homes offer to work with individuals interested in prepaying their funeral expenses. Just be sure to review the agreement carefully and understand that if the home goes out of business, you could lose your investment.
You can set aside funds earmarked for your funeral in a special savings account or other low-risk financial instrument. A payable-on-death (POD) account, sometimes called a “Totten Trust,” allows you to set aside money payable to a specific beneficiary without being tied up in probate.
Depending on your circumstances you may be eligible for reimbursement of some burial costs from the U.S. government. Some U.S. military veterans, for example, are eligible for a VA burial and funeral cost benefit, along with internment in a national military cemetery.
You may be able to use the Medicaid spend-down process to prepurchase funeral goods and services provided by a funeral home.
Burial insurance is a type of life insurance intended to ease the financial burden on the policyholder’s family and loved ones after their death. These policies typically have a face value of $25,000 or less and can be used to pay for a funeral and burial or cremation, as well as other end-of-life expenses. Policies may be referred to as “final expense insurance.” They’re usually marketed to those between the ages of 50 and 80.
Burial expense policies typically do not require a medical exam and accept people with pre-existing health conditions. Depending on the policy, there may be a waiting period (for example, two years) before you can get the full benefit.
As with virtually any other type of insurance, someone interested in burial insurance should complete a policy application. Many insurers offer online applications, and you can also purchase them through agents. The individual must choose a coverage amount and designate a beneficiary who will receive that money as a death benefit.
Once the policy is in effect, the policyholder pays an annual premium to the insurer. Term policies expire at the end of a set period, while whole life policies remain in force until the end of the policyholder’s life.
The beneficiary should file a claim with the insurer when the policyholder dies. They may need to provide a copy of the death certificate for confirmation. Assuming the death meets the conditions of the policy contract (a suicide, for example, may be excluded from coverage), the insurer will pay the death benefit to the beneficiary, who can use that money as needed for the policyholder’s funeral or other end-of-life expenses.
Virtually any kind of life insurance policy, including traditional term life or whole life, can be used to pay for end-of-life expenses. Unless the policy stipulates how funds are to be used (such as to pay off a mortgage), some or all of the death benefit could be put toward those costs.
However, the term “burial insurance” typically refers specifically to two types of life insurance policies:
Burial insurance can be an effective way to ensure that relatives and loved ones aren’t saddled with funeral and related costs. When shopping for a policy, be sure you understand its pros and cons.
Several factors affect the cost of burial insurance. These vary by policy but may include:
Removing the cost of a funeral from the list of things your loved ones need to worry about when you pass is certainly a worthy goal. Still, burial insurance may not be the optimal way to achieve this. It depends partly on your age and health.
As we’ve seen in our review, the cost of $10,000 worth of burial insurance can range from about $750 to more than $1,000 per year. If you’re still young, in decent health, and expect to live for many more years, setting aside that money in a POD savings account might make more sense.
Burial insurance is a life insurance policy that helps pay for a funeral, viewing, burial or cremation, and other related expenses. A policy can help remove some financial burden from your loved ones’ shoulders, but it’s not right for everyone.
Alternatives do exist. Before purchasing burial insurance, check with multiple companies to compare costs. Also, consider other options you might have to help your family pay for these expenses.
According to our review, Mutual of Omaha has the cheapest burial insurance. Our quote is based on a 62-year-old male living in Ohio who is seeking $10,000 in coverage and a guaranteed-issue policy. Note that your quote may vary by company, age and gender, coverage needs, and other factors.
The National Funeral Directors Association estimates the average cost of a funeral with a viewing and burial to be about $7,848.
Burial insurance is typically purchased by seniors who want a policy to pay for funeral and burial costs. However, the death benefit from a traditional term life or whole life policy can also be used to pay for these costs, provided it’s not stipulated in the policy that the money be put to another use.
Burial insurance is a form of life insurance. Unlike traditional life insurance policies, burial insurance policies have a low face value and typically do not require a medical exam.
The information presented here is created by TIME Stamped and overseen by TIME editorial staff. To learn more, see our About Us page.