the types of funeral insurance premiums are stepped, leveled, capped, and payout guarantee

What Are the Four Types of Funeral Insurance Premiums?

Burial insurance, also called funeral insurance, is a type of insurance offered to help people cover their end-of-life expenses. It is a type of permanent life insurance policy that is considerably smaller than normal life insurance policies. To enroll, people compare policies, choose the one they like best, apply, and then pay a monthly premium if their application is accepted. There are four types of monthly premiums specific to this type of insurance. Keep reading to learn more about them.

How Burial Insurance Works

As stated above, burial insurance works by covering end-of-life expenses so that your loved ones don’t have to worry about financial hardship for your funeral, debt, loans, etc., when you are gone. You pay a monthly premium, and then your loved ones benefit when you pass away. They can use the money to pay for anything as there are no restrictions. 

The Four Types of Premiums

There are four different premiums. These premiums are different from one another in how their prices change. They are: 

  • Stepped
  • Leveled
  • Capped
  • Payout Guarantee

Each name refers to how the premium changes — as you age — or how your beneficiaries will get paid.  

Stepped

The premium is calculated each year depending on when you renew your policy. It is based on your sex, age, and the size of the death benefit. Stepped premiums increase each year with your age.

Leveled

Your rates are locked in for life at the level they began when you first purchased the policy. If you pay your bills, they will not increase.

Capped

These premiums have a set monetary or age limit that, once met, will satisfy your premiums commitment. This means that after you pay a certain amount for a certain amount of time, you will continue to be covered without paying for anything.

Payout Guarantee

This premium guarantees that your beneficiary will be paid whichever is higher: the exact amount of premiums you have paid or the original insured amount.

How Much the Premiums Cost on Average

It’s good to understand how the premiums are priced on average. Men, smokers, and older people pay higher premiums. Look at the list below and match up your demographic to estimate your cost. 

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

All of these numbers can be overwhelming. To learn more about your options, contact us at Senior Life Services today.