Purchasing a Burial Insurance Policy

How to Purchase a Burial Policy

A burial policy, also known as final expense insurance, is a type of life insurance policy. These death benefits are typically more modest than the standard life insurance policy, ranging between $2,000 to $50,000. Burial policies function like any other private insurance plan. You buy the plan from the company, pay a monthly premium, and the company grants your beneficiaries the death benefit when you pass away. Today, SLS explains more about how to purchase a burial policy and how we can help.

The Role of an Insurance Agent

First, an insurance agent plays a critical role in helping you purchase the right burial policy. For example, a qualified agent is familiar with the plans and companies in your area. This knowledge is invaluable because plans differ around the country. Having an agent familiar with your area and the available offers can help you get the best plan. Why spend hours trying to find information when a licensed agent can do the work for you?

How Burial Agents Are Paid

You should also understand how burial insurance agents are paid. While not all brokers are paid the same, generally, they’re paid by commission. This offers some incentive for them to sell the pricier options. However, sometimes the more expensive options are better than the cheaper ones, so your agent may truly be trying to guide you to the better choice. This is why communication is important. Be upfront with your agent. Some states require agents to disclose all of the details of their commission when asked. An agent is your ally. If you don’t feel comfortable asking them about their commission, it may be time to choose another agent. 

Find Reputable Insurance Companies

If you decide not to work with an agent, you can choose to go through the carrier directly. Finding an insurance company you trust can be difficult. Here’s a short sample — in no particular order — of well-known companies that might have plans available in your area:

  • Mutual of Omaha
  • Foresters Financial
  • Transamerica
  • Royal Neighbors of America
  • American Amicable
  • AIG
  • Americo
  • Gerber Life

Look at each company in more detail below to understand your options.  

Mutual of Omaha

A.M. Best Rating: A+

New Applicant Range: 45-85

Face Amount Options: $2,000-$40,000

Pros:

  • No waiting period
  • Low monthly rates
  • Flexible options
  • Accept some chronic diseases

Cons:

  • Do not accept all serious diseases

Foresters Financial

A.M. Best Rating: A

New Applicant Range: 50-85

Face Amount Options: $2,000-$35,000

Pros:

  • No waiting period
  • Low monthly premiums
  • Flexible Plans
  • Offer plans to people with mental health issues

Cons:

  • Modified plan is not a good value

TransAmerica

A.M. Best Rating: A+

New Applicant Range: 45-85

Face Amount Options: $1,000-$50,000

Policy Type: whole life insurance

Waiting Period: No

Pros: 

  • No waiting period
  • Very large age range
  • Very large coverage range
  • Great for people with COPD

Cons:

  • No major stand-out cons

Royal Neighbors of America

A.M. Best Rating: A-

New Applicant Range: 50-85

Face Amount Options: $5,000-$25,000

Pros:

  • No waiting period
  • Flexible plans
  • Low monthly premiums
  • Best for seniors with diabetes
  • Good for people with other serious issues

Cons:

  • Does not offer guaranteed acceptance plans

American Amicable

Prosperity Life Insurance Group

A.M. Best Rating: A

New Applicant Range: 50-85

Face Amount Options: $2,500-$35,000

Pros:

  • No waiting period
  • Includes people with serious mental health disorders
  • Good premiums for tobacco users
  • Does not include cigar or pipe users as tobacco users in its algorithm

Cons:

  • Smaller range of coverage

AIG

A.M. Best Rating: A+

New Applicant Range: 50-85

Face Amount Options: $5,000-$25,000

Pros:

  • Guaranteed acceptance
  • Lower monthly premium that other guaranteed plans

Cons:

  • 2-year waiting period – typical for guaranteed plans
  • Smaller coverage range

Americo

A.M. Best Rating: A

New Applicant Range: 50-85

Face Amount Options: $2,000-$30,000

Pros:

  • No waiting period
  • Asks very few medical questions
  • Accepts people with many serious conditions

Cons:

  • Smaller range of coverage

Gerber Life Insurance

A.M. Best Rating: A

New Applicant Range: $5,000-$25,000

Face Amount Options: 50-80

Pros:

  • Guaranteed acceptance plan
  • High interest rate with refund

Cons:

  • 2-year waiting period – typical for many guaranteed plans
  • Smaller range of coverage

Cost of Final Expense Insurance

People Age 55

Female No Waiting Period:

$5,000: $15.80

$10,000: $28.40

$15,000: $41.00

$20,000: $53.60

Female Tobacco & No Waiting Period

$5,000: $20.66

$10,000: $38.32

$15,000: $55.88

$20,000: $73.44

Female Guaranteed Acceptance

$5,000: $18.38

$10,000: $35.84

$15,000: $53.30

$20,000: $70.77

Male No Waiting Period:

$5,000: $19.15

$10,000: $35.09

$15,000: $51.04

$20,000: $66.98

Male Tobacco & No Waiting Period

$5,000: $25.24

$10,000: $47.27

$15,000: $69.30

$20,000: $91.33

Male Guaranteed Acceptance

$5,000: $23.51

$10,000: $46.11

$15,000: $68.70

$20,000: $91.30

People Age 65

Female No Waiting Period:

$5,000: $22.11

$10,000: $41.01

$15,000: $59.91

$20,000: $78.82

Female Tobacco & No Waiting Period

$5,000: $29.60

$10,000: $56.00

$15,000: $82.40

$20,000: $108.79

Female Guaranteed Acceptance

$5,000: $28.19

$10,000: $54.51

$15,000: $80.76

$20,000: $107.02

Male No Waiting Period:

$5,000: $29.48

$10,000: $55.76

$15,000: $82.04

$20,000: $108.31

Male Tobacco & No Waiting Period

$5,000: $41.10

$10,000: $78.99

$15,000: $116.88

$20,000: $154.77

Male Guaranteed Acceptance

$5,000: $34.60

$10,000: $68.29

$15,000: $101.98

$20,000: $135.67

People Age 75

Female No Waiting Period:

$5,000: $37.81

$10,000: $72.41

$15,000: $107.01

$20,000: $141.62

Female Tobacco & No Waiting Period

$5,000: $48.54

$10,000: $94.43

$15,000: $140.31

$20,000: $186.20

Female Guaranteed Acceptance

$5,000: $45.60

$10,000: $90.29

$15,000: $134.98

$20,000: $179.67

Male No Waiting Period:

$5,000: $51.37

$10,000: $99.53

$15,000: $147.69

$20,000: $195.85

Male Tobacco & No Waiting Period

$5,000: $67.57

$10,000: $132.49

$15,000: $197.42

$20,000: $262.34

Male Guaranteed Acceptance

$5,000: $62.79

$10,000: $124.49

$15,000: $185.74

$20,000: $246.98

People Age 85

Female No Waiting Period:

$5,000: $69.55

$10,000: $135.90

$15,000: $202.25

$20,000: $268.60

Female Tobacco & No Waiting Period

$5,000: $96.45

$10,000: $180.70

$15,000: $282.95

$20,000: $376.20

Female Guaranteed Acceptance

$5,000: $103.10

$10,000: $204.20

$15,000: $305.31

$20,000: $406.41

Male No Waiting Period:

$5,000: $93.18

$10,000: $183.15

$15,000: $273.13

$20,000: $363.10

Male Tobacco & No Waiting Period

$5,000: $141.39

$10,000: $279.58

$15,000: $417.77

$20,000: $555.97

Male Guaranteed Acceptance

$5,000: $150.43

$10,000: $298.86

$15,000: $447.30

$20,000: $595.73

Choose Senior Life Services

Understanding the companies that offer plans and the costs of those plans is crucial to getting the best final expense policy for you. The best thing you can do is work with an agent at Senior Life Services. To learn more about your options, please contact us today