How can you avoid leaving your family in debt if you die with no savings?
The answer is where burial insurance comes in. This type of whole life policy, also known as final expense insurance, covers death-related expenses. These may include funeral and burial expenses, celebration-of-life expenses, outstanding medical bills, and any debts that survive you.
To compile a list of the best burial insurance companies in 2024, our experts examined life insurance policies from the highest-rated companies. We looked at the most important factors, such as age requirements, medical exam rules, and available riders, to help you find the most cost-effective and beneficial policies.
Best Burial Insurance Companies
These are the best burial insurance companies on the market right now.
Each does at least one thing really well, whether it’s providing exceptional value to policyholders or accepting applicants within an unusually wide age range.
1. Best for No Medical Exam: Mutual of Omaha
- BBB Rating: A+
- AM Best Rating: A+
Mutual of Omaha isn’t the only burial insurance company that issues policies without requiring a medical exam. But its no-exam underwriting process is particularly easy for applicants. You just have to answer a few basic questions about yourself, and you’re good to go.
Mutual of Omaha asks no health-related questions on your application — good news if you’re concerned about your health. The policy is guaranteed-issue, meaning it can’t turn you down for health reasons.
Additional features:
- Up to $25,000 in coverage, depending on age
- Apply up to age 85
- Level benefits and premiums on all policies
Pros:
- Online applications available
- Transparent with their offerings
- No medical exam required
Cons:
- Policy may have a waiting period of as long as two years
- Premiums may be higher due to no medical exam
2. Best for Immediate Coverage: Fidelity Life
- BBB Rating: A+
- AM Best Rating: A-
Fidelity Life has the most comprehensive line of burial insurance products, providing full coverage immediately. These products eliminate the two-year waiting period for full benefits, which is common elsewhere in the industry, making them ideal for applicants who are unsure how long they have to live.
Additional features:
- Policies range up to $40,000
- Apply up to age 85
- No medical exam is required, but you may pay less if you’re in good health
Pros:
- Offers approval within a few days
- No waiting period
- No medical exam is required on some policies
Cons:
- Low coverage amounts
- Only available between ages 50 and 85
3. Best for Life Insurance Choices: Ethos
- BBB Rating: A+
- AM Best Rating: n/a
Ethos works a little differently than the other best burial insurance companies on our list. They don’t underwrite or fund life insurance themselves. Instead, they are a third-party administrator.
They work with well-known life insurance companies with high AM Best ratings, such as Legal & General America, Ameritas, and Mutual of Omaha.
Additional features:
- Policies range from $1,000 to $30,000
- You can apply for and purchase policies online
- Available up to age 85
Pros:
- No medical exam is required
- Easy online application
- Beneficiaries can use the funds for any purpose
Cons:
- Doesn’t offer burial-specific insurance, only whole life policies to be used for burial
- Only available between ages 66 and 85
4. Best for Simple Application Process: State Farm
- BBB Rating: C-
- AM Best Rating: A++
State Farm offers a guaranteed issue final expense insurance policy, which is a whole life insurance policy.
Like many other companies on our list of the best burial insurance companies, there are no medical exams or questions; the coverage is guaranteed. State Farm is a financially secure insurance company, so you can be sure your family will get their benefits when you die.
Additional features:
- Has a two-year waiting period
- May pay dividends based on company’s performance
- No medical exam required
Pros:
- Coverage is guaranteed
- Simple application process
- Financially secure company
Cons:
- Limits coverage at $15,000
- Limited options for New York residents
5. Best for AARP Members: AARP/New York Life
- BBB Rating: A-
- AM Best Rating: A++
New York Life offers an AARP-exclusive life insurance product for AARP members. They guarantee acceptance, and the application takes only a few minutes online.
If you are not an AARP member, New York Life will assist you in becoming one if you are interested in their product. New York Life has the highest financial strength ratings, so you can rest assured that you’re investing your money in a solid product.
Additional features:
- Offers coverage up to $25,000
- Available between ages 50 and 80
- Available to spouses ages 45–80
Pros:
- No medical exam is required
- Get quotes instantly online
- Can increase coverage if needed by contacting New York Life
Cons:
- Has a two-year waiting period
- Only available up to age 75 in New York
What Is Burial Insurance?
Burial insurance is a special type of whole life insurance designed to cover the policyholder’s final expenses. These can include:
- Funeral and cremation expenses
- Burial expenses
- Medical bills related to end-of-life care
- Celebration-of-life expenses
However, a burial insurance policy’s beneficiary can generally use the death benefit as they see fit. If there’s money left over after paying for the policyholder’s final expenses, the beneficiary gets to keep it.
Many companies don’t name their burial insurance policies with that name. They may be called final expense insurance, guaranteed coverage insurance, or even a whole life insurance policy.
If you are older and have health issues, look for companies that offer no-medical-exam life insurance. This usually means you get guaranteed coverage, no matter your health. However, they may have a 2-year waiting period, so always read the fine print and determine how it affects your needs.
Burial Insurance Company FAQS
Fortunately, as insurance goes, burial insurance isn’t that complicated. But there are some common questions people have.
Is Burial Insurance Expensive?
Burial insurance is relatively expensive because it’s designed for older applicants. A 60-year-old will pay significantly more for $50,000 in burial insurance coverage than a 30-year-old for a $50,000 whole life policy.
However, the actual monthly premium on a burial insurance policy is likely to be manageable due to the policy’s small size.
Do You Need a Medical Exam to Get Burial Insurance?
Most burial insurance policies qualify as no-medical-exam life insurance. You can get coverage without a medical exam, and you might not even have to answer health questions.
Be aware that there’s a difference between guaranteed-issue burial insurance and simplified-issue burial insurance.
Neither requires a medical exam, and the company must approve guaranteed-issue burial insurance regardless of health. It can turn you down for a simplified-issue policy if your family health history or answers to health-related questions turn up something concerning.
Does Burial Insurance Expire?
Burial insurance is generally structured as whole life insurance, a type of permanent life insurance. Your policy doesn’t have a fixed term and won’t expire, even if you live a very long time after buying it. If you reach an advanced age—typically 95 or 100—you may be allowed to stop paying premiums without sacrificing your death benefits.
However, if you stop paying premiums before your policy allows you to, they could expire. In that case, you’ll have to reapply—probably at a higher premium— if you want to reinstate coverage.
How Do I Know How My Burial Insurance Pays Out?
There are three death benefit payout options: level, graded, and modified.
Level policies’ death benefits remain constant throughout the policy’s life, regardless of how soon you die after purchasing coverage. Graded death benefits increase with time, with the full benefit typically available only after the two-year waiting period ends. Modified death benefits take two full years to kick in — if you die during the waiting period, your beneficiaries may only receive the premiums you paid plus a small percentage of the death benefit.
Can an Insurance Company Deny a Burial Insurance Claim?
It’s very rare for insurers to deny burial insurance claims. The most common reasons for a denied claim include:
- The policyholder stopped paying premiums and didn’t reinstate the policy.
- The policyholder died during the waiting period.
- The policyholder died due to an excluded reason, such as suicide during the policy’s first two years.
To better understand when your insurer is within its rights to deny a claim on your policy, read your policy documents carefully. If you have an insurance agent, don’t hesitate to ask them to explain anything that’s unclear.
How to Choose the Best Burial Insurance Company
If you’re unsure which policy is right for you, take a step back and consider your personal circumstances and objectives.
If you’re relatively young, you’ll have far more options. A burial insurance policy might not even be the best choice for you—a traditional term life or smaller-dollar whole life policy could make more sense.
If you’re set on burial insurance, consider:
- How much coverage you expect to need
- How long you expect to live matters if you’re considering a graded or modified death benefit that doesn’t fully kick in for two years
- Which types of expenses you expect your survivors to encounter
- Whether you want your survivors to have an inheritance left over after settling your affairs
- Whether you need guaranteed-issue coverage due to health issues
- Any riders that appeal to you, such as accidental death or medical evacuation coverage
Once you have a good idea of what you’re looking for, take another look at your options and choose the policy that best fits your needs.
Alternatives to Burial Insurance
Burial insurance is just one option to protect your beneficiaries when you die. It’s often costly and provides limited coverage. Here are some good alternatives to consider.
- Term life insurance: You can purchase term life insurance for a specific period, and some are even available without a medical exam. They are a good policy for younger individuals or families who can’t yet afford whole life insurance.
- Whole life insurance: Burial insurance is a form of whole life insurance without a medical exam requirement and with lower coverage limits. You can purchase a much larger policy (with higher premiums) and dedicate some of it to your burial costs.
- Savings: A life insurance policy for burial expenses isn’t required; it’s just a thoughtful gesture to help your loved ones cover your final expenses. However, if you have enough money saved or invested that you’ll pass down to your heirs, they can use those funds to cover the expenses.
Methodology
We selected the best final expense insurance companies using several factors, including eligible age to apply, policy type options, coverage amounts, and medical exam requirements. No single factor overrules any other, but we prefer companies that score well on as many metrics as possible.
Age Range
Most burial insurance policies target older people who never purchased life insurance or let their earlier term life insurance expire. Many folks don’t purchase burial insurance until they’re past retirement age, and that’s OK — if they’re in excellent shape, they likely have decades left to live.
Policy Types
Most burial insurance is structured as whole life—a type of permanent policy that builds cash value and doesn’t expire unless you stop paying premiums. That said, we’re fans of companies that offer more affordable types of final expense coverage for people who don’t need the cash value component.
Coverage Amounts
Most burial insurance policies have relatively small death benefits because they’re designed to cover a narrow set of costs related to the policyholder’s death rather than replace their income for many years or pay off large debts.
Still, there’s considerable variation between providers when it comes to actual coverage amounts. Some life insurance companies top out at $25,000 in coverage regardless of age, while others offer as much as $50,000 or even $100,000 to younger applicants. That matters if you want your heirs to have something left over after settling your affairs.
Underwriting Requirements
The biggest question when it comes to burial insurance underwriting is whether the policy is guaranteed-issue.
“Guaranteed-issue” means the company can’t turn you down for any health-related reason. You could be on death’s door and still qualify for a policy. They typically don’t require a medical exam.
Riders & Add-Ons
The primary purpose of burial insurance is straightforward: to help cover funeral costs and burial expenses.
But the best burial insurance policies have add-ons — some optional, some already built into the price — that enhance their value. A common example is accidental death and dismemberment coverage, a rider that typically provides double the death benefit if you die in a covered accident.
Waiting Periods
The best burial insurance policies promise immediate coverage. If you apply for a policy on Monday and pass away on Thursday, the insurer won’t hesitate to approve the payout.
Other burial insurers are more conservative. Their policies have waiting periods as long as two years, meaning your heirs are out of luck if you die before then. Needless to say, we prefer immediate coverage, though a waiting period isn’t an automatic disqualifier if the policy is otherwise excellent.
Company Reputation & Financial Strength
Finally, insurance companies live and die by their reputations and financial strength. If an insurer doesn’t have the funds to pay the death benefits on your policy, what good was your policy in the first place?
All the companies on this list are well regarded by insurance experts and have good or excellent financial strength ratings from impartial rating agencies like A.M. Best.
