Is Final Expense Insurance for Cremation Worth It in 2025
Written by Daniel Ray, Life Insurance Expert |
✅
Fact Checked by
Lisamarie Monaco |
Editorial Disclosure
Are you in search for Final Expense Insurance For Cremation?
Planning for end-of-life expenses is a considerate step to alleviate financial burdens on loved ones. Final expense insurance, often referred to as cremation insurance, is designed to cover costs associated with cremation and related services.
Understanding how this insurance works, its costs, and alternatives can help you make an informed decision.
What Is Final Expense Insurance for Cremation
Final expense insurance is a type of whole life insurance policy specifically designed to cover end-of-life expenses, including funeral services, burial, or cremation.
These policies typically offer lower coverage amounts, making them more affordable and accessible, especially for seniors.
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How Does Cremation Insurance Work
Cremation insurance functions similarly to other life insurance policies:
No Medical Exam: Many final expense policies do not require a medical exam, making them accessible to individuals with health concerns.
Premium Payments: Policyholders pay regular premiums, which remain fixed throughout the life of the policy.
Death Benefit: Upon the policyholder’s passing, beneficiaries receive a death benefit intended to cover cremation and related expenses.
Cremation Cost By State
Cremation cost varies depending on where you live. Below is a tool that will give you the average cost of cremation by state.
How Much Does Cremation Insurance Cost
The cost of cremation insurance varies based on factors such as age, health, gender, and the chosen coverage amount. On average, monthly premiums range from $25 to $75. For example, a 65-year-old non-smoking female might pay approximately $40 per month for a $10,000 policy.
Male Cremation Insurance Rates
| Age of Applicant | $5,000 | $10,000 | $15,000 |
|---|---|---|---|
| 50 | $15.37 | $27.73 | $40.08 |
| 55 | $18.72 | $34.43 | $50.13 |
| 60 | $22.72 | $42.42 | $62.13 |
| 65 | $28.41 | $53.82 | $79.22 |
| 70 | $36.47 | $69.93 | $103.38 |
| 75 | $50.22 | $97.43 | $144.64 |
| 80 | $71.44 | $139.73 | $207.99 |
| 85 | $97.97 | $192.74 | $287.51 |
| 90 | $176.59 | $350.21 | NA |
Female Cremation Insurance Rates
| Age of Applicant | $5,000 | $10,000 | $15,000 |
|---|---|---|---|
| 50 | $12.86 | $23.06 | $33.08 |
| 55 | $14.97 | $26.94 | $38.90 |
| 60 | $18.04 | $32.87 | $47.70 |
| 65 | $22.11 | $41.01 | $59.91 |
| 70 | $28.07 | $53.12 | $78.18 |
| 75 | $37.81 | $72.41 | $107.01 |
| 80 | $50.82 | $98.43 | $146.05 |
| 85 | $69.55 | $135.90 | $202.25 |
| 90 | $149.69 | $296.41 | NA |
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Does Life Insurance Pay For Cremation?
What is the difference between life and burial insurance?
Life Insurance ~ protects survivors who depend on the insured person for financial support. Those persons/family members will be financially secure for years to come in your absence.
Burial Insurance ~ is slightly different whereas it is put in place to cover the cost of your funeral expenses when you die. Usually, face value is from $5,000-$25,000. Slightly higher depending on the carrier. Ask your independent agent.
Best Cremation Insurance Burial Policy
Not only is funeral the traditional choice after death, but it is also one of the more expensive options. As mentioned above, you can expect a burial to cost around $10,000.
While this may seem ridiculously high to some, think of the money that goes into a burial. If you’re deemed uninsurable at this age, a guaranteed acceptance life policy may be your only choice.
The casket, for one, usually costs around $2,000, but they can be far more expensive depending on the quality. In addition, the headstone is another item that needs to be accounted for. An average headstone will cost approximately $1,000, with the potential to be significantly more expensive.
Cremation And Final Expense
The next most popular option for final wish planning is cremation. This route is getting to be far more common since burials continue to increase in price.
In fact, people are opting for cremation much more often now than ever before. In fact, consensus says cremation will be as popular as burials. This is the most affordable life insurance for seniors.
Of course, cremation costs vary greatly between states and crematories. Some funeral homes have their own, which is usually far cheaper. On average, the cost of cremation is somewhere between $1,000-$2,000.
You’ll also need to purchase an urn, but these are much less expensive than caskets. The cost of the urns is between $100-$250. For life insurance for over 75 years of age, this may be the most affordable option.
Is Prepaid Cremation a Good Idea
Prepaid cremation plans allow individuals to pay for their cremation services in advance, often at today’s prices. This can be beneficial in protecting against future price increases and ensuring that specific wishes are honored.
However, it’s essential to consider factors such as the financial stability of the service provider and the flexibility of the plan, as circumstances and preferences may change over time.
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How To Prepare For Funeral Expenses
What is funeral insurance?
As opposed to term life insurance which expires at the end of a term. Be that a 10,15, 20 or 30-year term. A burial policy or funeral insurance is a simplified whole life policy that remains level for your entire life.
You can choose to prepay for your funeral. Some choose to save that money if they need it now and purchase a policy that will pay out to their spouses and dependents (beneficiaries) in the event of their death.
Will Funeral Homes Wait For Life Insurance?
Most of the time, no. BE PREPARED.
Why is it important to have funeral insurance coverage?
- Casket: This will probably be the largest expense of the funeral. Approximately, 2,400.
- Embalming: This service isn’t always required, but it’s necessary if there is going to be a viewing or visitation. The service costs about $700, according to the NFDA.
- Memorial Service: services cost about $2,000. This involves planning, obtaining proper permits and copies of the death certificate, preparing notices, holding the remains and coordinating with the place where you plan to hold the service, according to Funeral Planning 101.
- Grave-site: Funeral Planning 101 indicates that most plots start around $1,000, although it’s certainly possible to find a more affordable one. Many people choose to buy their plots ahead of time to know they’ll be with loved ones.
- Transportation: It costs about $300 to use a hearse to bring the deceased to the funeral home and about $130 for a service car or van, according to the NFDA’s statistics.
- Obituary: Having an obituary written may be free in a small-town newspaper, according to How Much Is It. Therefore, if your family wants you memorialized in a larger publication, though, it may cost up to $600 depending on the day you run the obituary, whether you include a picture and how long the biography is.
- Gravestone: A flat grave marker usually costs less than $1,000, while an upright one may cost up to $10,000. Prices vary based on the material and color you choose. Marble is the most expensive, but there is also granite, sandstone, limestone or concrete to name a few. Elaborate inscriptions can also add to the total, but if the deceased is a military veteran, you may be able to get a grave marker for free.
- Flowers: Funeral flowers can cost between $200 and $1,000 for a complete package, including the bouquet, spray, and boutonnieres.
Which is a Cheaper Funeral in U.S., Cremation or VA Burial?
Cremation or VA Burial? The cost can vary depending on the type of service you choose. Cremation services will be less expensive on our Veterans and their family compared to a traditional funeral.
Final Expense Insurance Companies
There are many affordable ways to cover your final expenses so that your family doesn’t have to. Purchasing a cheap burial policy is the best option for those on a budget, who are mostly concerned with paying for their own final expenses.
Below, we’ll list some of the advantages of a burial insurance policy:
- No Medical Exam Required — Unlike traditional term life and whole life insurance, burial insurance policies do not require a medical exam. In fact, this is great for people in ill health who do not want to take a physical, and for those that are having trouble getting coverage from life insurance companies due to poor health conditions. You’ll have no problems getting accepted for final expense insurance.
- You Don’t Need Full Life Insurance — Many people looking into insurance for their final expenses no longer need full life insurance coverage. This could be because they’ve already paid off all of their debts, their children are now adults, etc. Therefore, affordable burial insurance can save you loads of money because you won’t need to pay for all the other things covered by traditional life insurance.
- Coverage is Quick — Unlike traditional life insurance plans, final expense insurance will begin covering you in a matter of days after you apply, and in some cases even sooner.
Cremation Insurance For Seniors
What Is The Best Cremation Insurance For Senior Citizens?
A few of our favorite and best burial insurance policies are with the below A+Rated carriers. Let’s take a look.
| Feature | Details |
|---|---|
| Plan Options |
Level Benefit Plan Graded Benefit Plan* |
| Issue Ages |
Level Benefit Plan: 45–85 Graded Benefit Plan: 45–80 |
| Face Amounts |
Level Benefit: $2,000 – $50,000 (WA: $5,000 – $50,000) Graded Benefit: $2,000 – $20,000 (WA: $5,000 – $20,000) |
| Death Benefit Structure |
Level Benefit: Full benefit paid immediately upon death. Graded Benefit: Limited payout in first 2 years (premiums + 10%), full benefit after 2 years. |
| Accelerated Death Benefit | Available for terminal illness or nursing home confinement (varies by state). |
| Optional Riders | Accidental Death Benefit Rider |
| Underwriting | No medical exams required; simplified underwriting with health questions. |
| Premiums | Competitive premiums that fit most budgets. |
| State Availability | Available in all states except AR, MT, NC. |
| Feature | Details |
|---|---|
| Plan Options |
PlanRight Preferred (Level Benefit) PlanRight Standard (Level Benefit) PlanRight Basic (Graded Benefit) |
| Issue Ages | Based on underwriting and plan selection. |
| Face Amounts |
Preferred: Up to $35,000 Standard: Up to $20,000 Basic: Up to $15,000 |
| Death Benefit |
Level Benefit (Preferred & Standard): Full payout immediately. Graded Benefit (Basic): Return of premiums + 10% interest in first 2 years, full payout after. |
| Guaranteed Features | Guaranteed level premiums, death benefit, and cash value accumulation. |
| Included Riders |
Accelerated Death Benefit (Terminal Illness) Common Carrier Accidental Death Rider Family Health Benefit Rider |
| Optional Rider | Accidental Death Rider (Available with PlanRight Preferred) |
| Underwriting | No medical exam required, based on answers to health questions. |
| State Availability | Not available in OR, SC, or VA. |
| Feature | Details |
|---|---|
| Plan Options |
Level Benefit Plan (Preferred or Standard) Modified Benefit Plan |
| Issue Ages | 50-85 |
| Face Amounts |
Level Benefit: $2,500 – $35,000 (varies by health class) Modified Benefit: $2,500 – $20,000 |
| Death Benefit |
Level Benefit: Full payout from day one. Modified Benefit: 105% of premiums paid in year 1, 110% in year 2, full payout from year 3. |
| Guaranteed Benefits | Fixed premiums, guaranteed non-cancelable as long as premiums are paid. |
| Underwriting | No medical exam; instant decision based on application. |
| Additional Benefits | Includes free access to **LegacyShield®**, which provides estate planning tools, digital document storage, and financial consolidation. |
*Ballpark Quote
What Happens If You Can’t Pay for Cremation
If an individual passes away without sufficient funds or insurance to cover cremation costs, the responsibility typically falls to the next of kin.
In cases where the family cannot afford the expenses, local or state government programs may provide assistance, which can vary by location. It’s advisable to check with local authorities or social services for available support options.
Should You Get Cremation Insurance?
In most cases, a burial insurance policy does not offer enough coverage to protect families, but there are many situations where it is the best option.
There are plenty of things to consider before deciding on an insurance policy or end of life insurance. Compare the different burial insurance plans and make an educated decision.
For one, calculate how much debt you have. If you owe a lot of money or have a mortgage, you’ll need more than a burial insurance policy to cover these things.
However, if no one is financially dependent on you, and some debt will be left, then a burial insurance policy is a fine option.
Most importantly, consider your budget. Many people can’t afford more than a burial policy plan. Furthermore, people in poor health may find difficulty with approval for any kind of traditional life insurance policies.
In these cases, burial insurance is an excellent alternative. Although burial insurance has some limitations, it is definitely better than having no insurance at all.
Contact your independent life insurance agent at PinnacleQuote to help guide you in purchasing the best burial insurance.
Whether you choose a Final Expense Life Insurance Policy that covers funeral expenses and then some, a dedicated final expense insurance policy, or funeral pre-payment, you’ll be doing your loved ones a huge favor.
Taking the time to consider and document your end-of-life wishes may be a little uncomfortable now, but it will make all the difference when the time comes.
Final Thoughts on Cremation Insurance
The Idea of life insurance causes many people to hold back on purchasing it.
However, life insurance companies purchasing cheap burial insurance policies easy to obtain. Since the face value of the policy is much smaller than a traditional life insurance policy no exam is required. The direct result of this is a lower, more affordable premium payments.
Therefore, if you feel that you cannot afford traditional life insurance, you will find the affordability and ease of final expense policies helpful. This is a type of life insurance plan you can afford to meet your final expense needs.
It provides peace of mind in regards to funeral expenses being covered. With a traditional insurance policy, your dependents are using that death benefit for every expense: mortgage, college, everyday living, and so on, in addition to funeral costs.
With final expense insurance, you and your beneficiaries know what the money is supposed to be used for, taking much of the stress out of planning your burial.
FAQ
Final expense insurance is a whole life insurance policy that provides a death benefit intended to cover funeral costs, medical bills, and other end-of-life expenses. It’s also referred to as burial or funeral insurance.
Upon the policyholder’s death, the insurance company pays out a tax-free cash benefit to the designated beneficiary. These funds can be used to cover cremation services and related expenses, such as:
–Crematory fees
–Urn
–Cremation casket
-Funeral home services
-Memorial services
The beneficiary has the flexibility to allocate the funds as needed, ensuring all final wishes are honored.
No Medical Exam Required: Most policies do not require a medical examination, making them accessible to individuals with health concerns.
Fixed Premiums: Premiums remain constant throughout the life of the policy, providing predictable and manageable payments.
Lifetime Coverage: As long as premiums are paid, coverage does not expire, ensuring protection for your entire life.
Cash Value Accumulation: Policies build cash value over time, which can be borrowed against if needed.
The cost of cremation can vary based on location and specific services chosen. As of 2023, the National Funeral Directors Association reports the median cost of a funeral with viewing and cremation is approximately $6,280. It’s advisable to assess your desired services and consult with local providers to determine an appropriate coverage amount.
Consider the following when selecting a policy:
Coverage Amount: Ensure the death benefit aligns with anticipated cremation and funeral costs.
Premium Affordability: Choose a premium that fits within your budget, keeping in mind that payments are typically lifelong.
Company Reputation: Research insurance providers’ financial stability and customer service records.
Policy Terms: Understand any exclusions, waiting periods, and riders that may be available.
Consulting with an insurance agent can provide personalized guidance tailored to your needs.
By understanding final expense insurance and its role in covering cremation expenses, you can make informed decisions to ensure your end-of-life wishes are met without placing a financial burden on your family.
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Conclusion
Final expense insurance for cremation offers a practical solution to manage end-of-life expenses, providing peace of mind that financial burdens won’t be left to loved ones. By understanding how these policies work and considering the associated costs and benefits, you can make an informed decision that aligns with your financial situation and personal preferences.
The only thing worse than not planning for your final expenses is having to plan them. We can help you get the funeral and burial insurance policy that’s right for you, so stop worrying about how your family will manage in the event of a loved one’s death. Get Quote now – it takes just minutes!
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