Burial insurance for seniors is a very popular type of life insurance. It’s affordable and easy to buy and at the same time, it’s easy to qualify for.

In fact, there are burial insurance policies available where the company doesn’t even consider your current health or health history.

If you die, the policy will pay your beneficiary the face amount of the policy in a tax-free lump sum which can be used to take care of final expenses that all of us leave when we pass away.

If you want to have peace of mind knowing that your funeral and burial costs will not be left for surviving loved ones to pay out-of-pocket, having a burial insurance policy in place will help provide that peace of mind.

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What is Burial Insurance for Seniors?

Do You Need Burial Insurance If you Have Life Insurance?

What are the Benefits of Burial Insurance?

Types of Burial Insurance Policies for Seniors

Burial Insurance Costs by Age Group

Best Burial and Funeral Insurance Companies

What is Burial Insurance for Seniors?

Burial Insurance, also called funeral insurance or final expense insurance, is a whole life insurance policy that’s purchased to cover final expenses when you die.

For most seniors, these final expenses are funeral and burial costs, unpaid medical bills, and nursing home expenses not covered by health insurance.

Since a burial insurance plan is built on a whole life insurance policy, the policyholder will have coverage for life as long as the premiums are paid.

Most companies that offer burial insurance use whole life insurance rather than term insurance. By doing so, seniors who are covered know that the policy cannot be canceled as long as premiums are paid, the monthly payment can never be increased, and the policy will build cash value over time and can be accessed for any reason.

Do you Need Burial Insurance if You Already Have Life Insurance?

Whether you need a stand-alone burial insurance plan when you’re already covered under another life insurance policy can depend on several things:

Is your current life insurance through your employer?

If your current policy was purchased through your employer, it’s likely a term life insurance policy which is generally not considered portable. This means if you change employers or retire, your employer-sponsored policy will not follow you to the new employer or will cancel when you retire.

Is your current life insurance policy term insurance or permanent insurance?

Most people who buy life insurance as a young adult, buy term insurance because it’s so affordable and its main purpose is to replace the income of a breadwinner. But, term insurance is temporary and will not be in force for the lifetime of the policyholder.

Did you consider that a funeral and burial can cost $10,000 to $12,000?

Even if you are currently insured under a term or permanent policy, were you aware of how much your final expenses could amount to when you pass away? If your coverage isn’t sufficient, your surviving loved ones will inherit the cost of burying you.

Benefits of Burial Insurance for Seniors and Their Families

It’s important to leave your loved ones with the money they need, and the burden of unpaid funeral expenses isn’t something you want to burden them with. Funerals can be very expensive, and a bill that large can put your family in a dire financial situation.

Having a burial policy in place and letting your surviving loved ones know about it can benefit you and your loved ones by providing peace of mind knowing that your final expenses will be paid by your insurance policy.

Moreover, seniors who are shopping for burial insurance will find that many of their concerns are alleviated when they discover how easy it can be to get a policy started:

  • Absolutely no medical exam or blood test requirement
  • Liberal underwriting guidelines
  • A-rated insurance companies with outstanding claims service
  • Lifetime insurance coverage
  • Quick and easy online or over the phone shopping
  • Cash value that earns tax-deferred interest over time
  • Many companies competing for your business
  • Policy benefits from $5,000 to $40,000
  • Guaranteed issue policies for applicants with severe or multiple health conditions

Most insurance companies that offer burial insurance provide two or three benefit levels that will accommodate those seniors who have health issues.

  • Level Benefit Plan – The level benefit plan is for healthy seniors with minimal health issues and offers the lowest rates with first-day coverage.
  • Graded Benefit Plan – A graded benefit plan is available for seniors who do not medically qualify for a level benefit plan. Rather than deny coverage, the insurance company adds a two to three-year waiting period where a portion of the death benefit is paid if the insured dies from natural causes during the waiting period. Typical payouts are 30% in year one, 70% in year two, and 100% thereafter.
  • Guaranteed Issue Plan ­– Seniors who cannot medically qualify for a level benefit or graded benefit plan have the option to purchase a guaranteed issue plan. This plan does not consider the applicant’s health during underwriting and virtually every single can purchase coverage. Similar to the graded benefit plan, this plan has a waiting period of two or three years when the company will pay 110% of all premiums paid to the company if death is due to natural causes.

Seniors with health issues will be relieved to learn that no matter the health conditions they are dealing with, they can purchase burial insurance to pay for final expenses when they die.

Types of Burial Insurance Policies for Seniors

Seniors who are looking for affordable burial insurance have choices. There are two main types of burial insurance: standard and pre-need. The difference between the two is the way the funds are dispersed.


The standard burial insurance policy is what most seniors prefer to purchase. With a standard policy, the death benefit is distributed directly to the beneficiary or beneficiaries listed in the policy when the policyholder dies.

With a standard policy, the insured has estimated his or her final expenses and then purchases life insurance sufficient to cover those expenses such as:

  • Funeral expenses that generally include the burial service
  • Memorial service
  • Casket
  • Headstone
  • Cremation (if preferred)
  • Urn (and headstone if remains are buried in a cemetery)


  • Death benefit paid directly to the beneficiary
  • Funds can be used for any funeral provider
  • Remaining funds, if any, can be used to pay other final expenses such as unpaid medical or nursing home bills or help with travel expenses of close relatives.


  • No requirement that funds must be used as intended by the deceased
  • Loved ones may need to be involved with funeral and burial arrangements
  • Loved ones may be responsible for choosing a cemetery for burial


Pre-Need Plan

Pre-Need plans are typically arranged with a particular funeral home and its director and all funds will go to that particular funeral provider. In most cases surviving loved ones must work with the funeral director who devised the pre-need plan and as such, have very little input.

Many seniors choose a pre-need plan over standard burial insurance because they can choose and pay for services in advance which can end up costing less than a funeral at later date.


  • Funds are directed to the chosen funeral home
  • Little if any underwriting involved
  • Can save on funeral services by paying current prices rather than future prices
  • Surviving loved ones will not have to be involved in service planning


  • Surviving loved ones can work only with the funeral home that set up the pre-need plan
  • Loved ones will have little control over services, casket selection, or headstone
  • A Funeral home may have an undesirable change in ownership
  • No benefit to surviving loved ones if prices go down

Burial Insurance Costs for Seniors (By Age Group)

Like other life insurance products, the rates for seniors are calculated based on the applicant’s age, sex, health status, and the face amount of the policy, and the type of policy you qualify for.

In this section, we are offering a range of rates for three different face amounts which are the most popular according to most seniors who purchase burial insurance:

$5,000 Coverage for Females Age 60 – 85

Age Level Benefit Guaranteed Issue
60 $18.04 $27.97
65 $22.11 $34.21
70 $28.22 $41.21
75 $37.81 $58.86
80 $50.82 $95.77
85 $69.55 NA

$5,000 Coverage for Males Age 60 – 85

Age Level Benefit Guaranteed Issue
60 $23.48 $35.07
65 $29.84 $46.42
70 $36.91 $54.00
75 $51.59 $75.83
80 $71.47 $104.16
85 $97.97 NA

$10,000 Coverage for Females Age 60 – 85

Age Level Benefit Guaranteed Issue
60 $32.87 $53.93
65 $41.01 $66.42
70 $51.92 $80.41
75 $72.41 $115.73
80 $98.43 $189.53
85 $135.90 NA

$10,000 Coverage for Males Age 60 – 85

Age Level Benefit Guaranteed Issue
60 $43.76 $68.14
65 $56.48 $90.83
70 $70.67 $106.00
75 $99.97 $149.66
80 $139.73 $206.32
85 $192.74 NA

$15,000 Coverage for Females Age 60 – 85

Age Level Benefit Guaranteed Issue
60 $47.70 $79.90
65 $59.91 $98.63
70 $76.31 $119.62
75 $107.01 $172.59
80 $146.05 $283.30
85 $202.25 NA

$15,000 Coverage for Males Age 60 – 85


Age Level Benefit Guaranteed Issue
60 $64.04 $101.21
65 $80.64 $135.25
70 $104.42 $158.00
75 $148.36 $223.49
80 $207.99 $308.48
85 $287.51 NA

Best Burial and Funeral Insurance Companies for Seniors

Today’s seniors have a great advantage when it comes to shopping for burial or funeral insurance because there are so many insurers competing for their business.

Certainly, every senior prefers to pay a price for burial insurance, but the company you select must also demonstrate that they are financially stable and will be able to keep their promise to pay a death benefit for decades in the future.

As in any industry, some companies do better than others when it comes to affordable prices and outstanding customer service. Here are our five go-to companies (in no particular order):


Established A.M. Best Rating Plans Available Available Death Benefit Eligible Ages
1909 A+ Superior Level and Graded Benefit $2,000 – $40,000 40 to 85

Mutual of Omaha’s Living Promise Plan is well known to agents offering burial insurance to seniors. They are always competitive with the top five companies and have a reputation for providing outstanding customer service to policyholders and agents.

Established A.M. Best Rating Plans Available Available Death Benefit Eligible Ages
1938 A- Excellent Level, Graded Benefit, & Modified Benefit $1,500 – $35,000 50 – 80

Prosperity Life Group takes final expense life insurance for seniors very seriously. And as such, the company provides three policy types to make certain that every eligible applicant has the opportunity to secure valuable life insurance protection.

Established A.M. Best Rating Plans Available Available Death Benefit Eligible Ages
1919 A- Excellent Guaranteed Issue $5,000 – $25,000

AIG has long been the go-to insurance company for guaranteed issue burial insurance and funeral insurance as there are few companies to choose from.

Established A.M. Best Rating Plans Available Available Death Benefit Eligible Ages
1910 A Excellent Graded, & Modified $2,500 – $35,000 50-85

American Amicable has the most competitive rates for individuals who smoke cigarettes. They are also one of the few companies that will offer a non-tobacco rating to cigar and pipe smokers.

Established A.M. Best Rating Plans Available Available Death Benefit Eligible Ages
1936 A Excellent Grade Benefit $2,500 to $25,000 40-90

Although many insurers pay the graded benefit over three years, Guarantee Trust Life only requires a two-year graded benefit period. Additionally, if the two-year graded benefit period does not apply if the insured’s death is the result of an accident.

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