Burial Insurance Cost: Average Rates & What Drives Them

Burial insurance, also called final expense insurance, is a small whole life policy meant to pay for funeral costs and related bills. Face amounts are usually modest, and the premium stays level once the policy is issued. Because the amounts are small, the monthly premium is also small compared with a large term policy, but the price per dollar of coverage is higher.

Age is the main driver. A policy bought in the 50s costs a fraction of what the same policy costs in the 80s. This page shows published monthly premiums by age and sex, by coverage amount, and for guaranteed issue policies that skip health questions.

Each row above shows the average premium for a woman and a man. Women pay less because insurers expect them to live longer. The jump from 70 to 80 is the sharpest. Over that decade the premium for the same coverage rises a great deal, so waiting has a real price.

Premiums here come from MoneyGeek's review of insurers that sell final expense policies. Individual quotes vary by company, health history, and tobacco use.

Premiums rise with the amount of coverage, though not always in a straight line. The table shows two amounts at age 70.

Common coverage amounts run from a few thousand dollars to a few tens of thousands. Funeral costs differ by region and by the choices a family makes, so many buyers look up local funeral home price lists before choosing an amount. The Federal Trade Commission requires funeral homes to give itemized price lists on request.

Some policies accept applicants without a medical exam or health questions. They cost more than policies that ask about your health, and they usually have a waiting period before the full benefit is paid. NerdWallet publishes Choice Mutual data for these policies.

A guaranteed issue policy tends to make sense for people who cannot qualify for a standard policy. The waiting period matters, so read the policy for what happens if death occurs early. A licensed insurance agent can explain the terms of a specific contract.

The two sources report similar figures but are not the same. MoneyGeek reports an average for a 70 year old man across the insurers it reviewed. NerdWallet reports the average of the three lowest guaranteed issue rates, using Choice Mutual data. Different underwriting types, sample insurers, and dates may explain the gap, so use them as a range.

Burial insurance pays a benefit to a beneficiary, who then pays the funeral home. A pre-need funeral plan, by contrast, is a contract with a specific funeral home. Each has rules about transfers and refunds. Read the contract and ask what happens if you move or change your mind.

Burial insurance is permanent coverage with a level premium. The price you are quoted at purchase stays the same for the life of the policy, and the benefit does not shrink. That makes the monthly cost easy to plan around, but it also means you keep paying for as long as you hold the policy. Some policies stop requiring payments at a certain age, and others do not, so ask for the payment schedule in writing.

A missed payment can cause a policy to lapse, and the insurer may then pay little or nothing. Most contracts include a grace period, so check how long it lasts before you sign.

• Age at purchase
• Sex
• Coverage amount
• Health history and the type of underwriting
• Tobacco use
• The insurer

• Is the premium fixed for life?
• Is there a waiting period, and what is paid during it?
• Does the policy build cash value?
• Can the insurer cancel the policy if I miss a payment, and how long is the grace period?