Affordable Burial Insurance for Seniors: How It Works

Updated October 1, 2018
Buying burial insurance makes sense for seniors

With a little homework, it is possible to find affordable burial insurance for seniors. This type of insurance is offered to cover the costs associated with a person's funeral.

Average Cost of a Funeral

According to the National Funeral Directors Association (NFDA), the average cost of a funeral with viewing and burial in 2017 was $7,360. This figure has steadily increased with each passing year.

Purchasing Burial Insurance

As people get older, they will be more concerned with end-of-life issues, including funeral arrangements. They may be wondering if they will be able to buy burial insurance at a price they can afford. Another concern may be that the individual may have health issues that would make them uninsurable.

Types of Burial Insurance

Burial insurance is a small life insurance policy. When the policyholder dies, the benefit is paid to the beneficiary named on the policy.

Funeral Pre-Payment

With pre-needs or final expense insurance, an individual buys a policy and the proceeds are paid to the funeral home. This falls into the category of pre-planning one's funeral. It's a relatively simple matter to meet with a funeral director and pick out the casket and decide on any other services you want the funeral home to provide.

Locking in a Price

The funeral director will add up the costs of the items and services you have chosen and sell you a policy that will cover this amount. If you are interested in buying this type of policy, do ask questions and read the forms thoroughly before signing them. The idea is to lock in the cost at today's prices, not to be charged extra fees after the fact. You will also want to ask whether the policy can be transferred to another funeral home or to another state if you decide to move.

Benefits Paid to Funeral Home

Another option for burial insurance is to select a specific face amount for your policy. The idea is to choose a maximum level of expense for the funeral. The benefit will be paid directly to the funeral home. If the funeral expenses do not exceed the face value of the policy, any remaining funds will be paid to a second beneficiary. (Be sure this provision is clearly stated in the policy details; some funeral directors may be under the impression that they are to receive the full payment, no matter how much the funeral costs.) If the funeral costs exceed the amount of the insurance policy, these will have to be paid by the next of kin or the deceased person's estate.

How to Choose Affordable Burial Insurance for Seniors

Here are some things to look for when buying affordable burial insurance for seniors:

  • Premiums that do not increase over time
  • Full benefit paid as soon as policy is issued
  • Benefits are tax-free
  • Policy accumulates cash value - although this may increase the cost of the policy

Where to Find Burial Insurance

  • Senior Burial Insurance offers burial insurance, whole and term life coverage for adults between the age of 18 and 85. Visitors to the site fill out an online form to receive quotes from multiple insurers.
  • If you want an instant online quote for insurance, visit Spectrum Burial Insurance. Fill in some basic information (state of residence, age, date of birth, amount of coverage desired, smoker/non-smoker, etc.) to receive quotes from several insurance companies. Click on the company you are interested in for an online application form.
  • Colonial Penn offers instant quotes on their Guaranteed Acceptance life insurance. Their plans are designed to be used for final expenses such as funerals and burials. Simply fill out the minimal amount of information required and click to see your quote.

Low Cost Burial Insurance

The money you spend now for burial insurance will relieve some of the burden off your loved ones upon your death. Even an inexpensive policy without all the bells and whistles will be of help to them, so don't avoid buying a policy just because you can't afford the premium policies. Whatever you can do now will be of great benefit to your family later.

Affordable Burial Insurance for Seniors: How It Works