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.
