At IBUSA, we work with the top final expense and burial insurance companies in the U.S. Our goal is to align our clients with the company that best meets their needs, goals, and of course, budget.
There are some important nuances any burial insurance shopper needs to be aware of. That is why we created this burial insurance for seniors guide, so we can help you make the best decision you can on the right coverage from the right company, that best fits your specific situation.
The best burial insurance for seniors is going to have three primary ingredients:
- The policy is whole life insurance
- The company is top rated
- The premiums are affordable
Best Burial & Funeral Insurance Companies
The following list represents the top 24 companies that offer the best burial insurance for seniors based on our 3 criteria above.
- American Continental Insurance Company (Aetna)
- American International Group (AIG)
- American Amicable
- American National
- Baltimore Life
- Colonial Penn
- Fidelity Life
- Foresters Financial
- Gerber Life Insurance
- Globe Life
- Kemper Senior Solutions
- Liberty Bankers Life
- Lincoln Heritage Life Insurance Company
- Mutual of Omaha
- Oxford Life
- Royal Neighbors of America
- Sagicor Life Insurance Company
- Trinity Life
- United Home Life
What is Burial Insurance?
Burial insurance is a life insurance policy that is used for the primary purpose of covering burial or funeral expenses. It could just as easily be called funeral insurance, as the primary purpose is to cover the costs of a funeral.
There is no category of insurance termed “burial insurance”. Some companies use the term “burial insurance” as marketing, while other companies use the term “final expense insurance” of “funeral insurance.”
Burial Insurance Definition: A burial insurance policy is taken out by the owner who is also typically the insured. The insurer (the company) agrees to pay out a death benefit to the insured’s beneficiary, upon the death of the insured, as long as the owner makes the required premium payments.
Burial Insurance Qualification Requirements
Depending on the company and policy, most senior burial insurance policies have at least two requirements.
Requirement one: You must reside in a state where the burial insurance is sold.
Requirement two: You must be in the age brackets mandated by the burial insurance policy.
Now, there are different categories or types of burial insurance policies, which are termed Level, Modified and Graded or Guaranteed Issue.
Level, Modified, or Graded Issue
Most burial insurance policies are considered no exam life insurance, also known as simplified issue. That means you will not be subjected to an exam, which typically includes a urine sample and blood draw.
Instead, depending on the policy that you qualify for, you will typically have to answer some medical questions, although that is not always the case.
Level benefit burial insurance means that the coverage pays out 100% from day one the policy is placed in force.
A level benefit policy is the more difficult of the three to qualify for because it involves answering a handful of health questions.
It is simplified issue, meaning there is no medical exam involved.
Rather, you must answer yes or no to a series of health questions.
Often level benefit burial insurance plans are instant issue, meaning if you pass the questions the policy will be approved and put in force immediately.
Modified benefit burial insurance plans pay a specified percent of the death benefit amount.
A policy might pay 40% of the death benefit in year one, followed by 70% of the death benefit in year two, with the full amount paid in year three and onward.
With modified benefit policies, there is a 100% death benefit payout from the policy’s start date if death is due to an accident.
A graded benefit policy is one where the coverage for natural causes does not start until after year 2 or 3 of the policy.
A guaranteed issue life insurance policy would fall into a graded-benefit category of burial insurance.
With a guaranteed issue policy, there are no health questions. If you meet the age requirements and live in a state where the product is sold, you are good to go.
With graded benefit policies, there is a 100% death benefit payout from the policy’s start date if death is due to an accident.
Whole Life Burial Insurance
It is very important that the burial insurance policy for seniors be whole life insurance vs term insurance.
The primary reason for this is that a burial insurance policy should last your entire life. With term life insurance, the policy only lasts for a set period of time.
Once a term policy expires, the coverage ends, although you typically have the ability to renew the policy on an annual basis. However, the term life premiums will increase dramatically year over year.
In contrast, whole life insurance lasts your entire life as long as your premiums are paid.
Further, your whole life premiums are fixed, which means you pay the same premium payment from day one, all the way to the day you die.
Some Additional Benefits of Whole Life Burial Insurance
Let’s take a minute to explore some additional benefits of whole life insurance.
First, whole life builds guaranteed cash value. You can use your cash value to pay premiums for a time, borrow against if you need some quick cash, or you can use it to purchase a reduced paid-up policy down the road.
Second, whole life insurance has a guaranteed death benefit. That means that as long as you pay your premiums, the policy is guaranteed to pay out a death benefit.
This is in contrast to term life which can expire. But it is also in contrast to other types of permanent life insurance that does not offer the same type of guaranteed death benefit, where the policy may not perform as illustrated and you lose your coverage or are forced to make larger payments to keep it in place.
So, in summary, the three primary benefits of whole life burial insurance is that you have a guaranteed fixed premium payment, guaranteed cash value growth and a guaranteed death benefit payout to your beneficiary.
Alternatives to Whole Life Insurance for Burial Insurance
A term life policy last for a specific period of time. Depending on your age, you can get anywhere from a 1 year to 40 year term insurance policy.
Many term burial insurance plans are designed so that the premium increases every five years. So, you may pay $30 a month in the first five years of your term policy, but your premium will increase to $40 a month for the next 5 years.
And as you get older, your premium increase will be more substantial, making it difficult to keep the term insurance as you age.
Why Burial Insurance?
Dying can be very expensive. The current cost of a funeral in the U.S. can run around $7,000-$10,000.
In addition to a burial, there is also any existing debts that need to be paid, including hospital bills and legal fees.
That is why leaving any amount of money to your family when you die is a true act of kindness.
Otherwise, your family and friends may have to start a gofundme campaign just to pay for your funeral.
How We Can Help
At IBUSA, we work with the best final expense and burial insurance companies. We can help align you with the company that best meets your needs and goals.
So what are you waiting for? Give us a call today and experience the IBUSA difference!