Life Insurance for Funerals

Last Updated May 25, 2024
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In the United States, the average funeral costs is $10,000+.

Don’t feel bad if this caused you to immediately wince in pain for your finances. For most families, this is an unexpected cost and can cause financial burden in a heartbeat.

Here at Final Expense Benefits, we specialize in helping you connect your family to a highly skilled list of vendors meant to provide you with the best coverage option in the market. We analyze all Life Insurance types and pride ourselves in providing you with peace of mind knowing that your funeral expenses will be paid for. 

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What is funeral insurance?

Older Couple Surverys Their Options

For most seniors, finding life insurance is difficult and seems impossible. With age and health it can be almost impossible to find a term life insurance and for many seniors, they feel it’s too late.

Senior funeral insurance comes in all shapes and sizes. Whether you’re a healthy individual or you have pre existing conditions, there is a funeral insurance policy that you qualify for.

Funeral Insurance introduces itself as a whole life insurance policy meant specifically to aid beneficiaries in covering funeral expenses in the occurrence of an untimely event. Although a whole life policy, this is not to say that this policy type contradicts other Life Insurance types. 

The coverage amounts for Funeral Insurance generally begin at as little as $1,000 in coverage, all the way up to $50,000 usually. The benefits of policies like Funeral Insurance incur a very swift accumulation of funds relative to the monthly premium, remaining relatively low depending on the age in which coverage was purchased. Usually purchasing this insurance type past age 80 is still a wise decision, you’ll just have to play a little catchup. 

As Funeral Insurance is marketed towards the minimization of funeral expenses, it does not hold a specific cash value until payout occurs, removing it from asset lists and disqualifying it from interfering with other policies/Medicaid. Despite incentivizing this fund specifically for use regarding funeral expenses, the beneficiary of said funeral insurance may use the funds for anything desired, as times are ever-changing and no two families desire the same thing.

These policies exist as guaranteed or term whole-life policies meant to provide stability after the waiting period (usually 2 years), and do not require a medical exam out of the policyholder/beneficiary, but rather a medical questionnaire. Your rate may be adjusted based on common qualifying features, such as your tobacco use, pre-existing conditions, current medications, height, weight, etc. 

What Funeral Insurance Options Do I Have?

Simplified Issue
Simplified Issue Funeral Insurance remains the premiere option within this classification, and if you qualify we urge you to consider this option. Although no medical examination, the medical questionnaire for this type may be the most rigorous. If applicable though, the rate you receive will remain the lowest within its relative category.
Guaranteed Issue
Guaranteed Issue Funeral Insurance is just as it sounds, offered at a guaranteed acceptance rate for any applicants. As mentioned above, you will be given a brief medical questionnaire and your rate may be adjusted as a result of factors like tobacco use, pre-existing conditions, age, height, weight, and what have you. This option is great for seniors who may feel unsure if they qualify for simplified issue policies as a result of one of the aspects mentioned above. Keep in mind, that this form usually presents itself as the costly option of the 3, although still relatively affordable compared to other more generic whole life insurance policies.
A little odd compared to the other two, this Funeral Insurance type offers an agreement with a funeral home in which payout is sent directly to them with no middle man. Usually, the Funeral Insurance type we’d recommend the least, as payout may be used at the discretion of the beneficiary in the case of the other two plans.

How much does funeral insurance cost?

Thankfully, here at Final Expense Benefits, we contract with only the top senior life insurance companies. If you’re a senior on a fixed income, we work with carriers like;

These carriers are industry leaders and specialize in helping seniors find the funeral life insurance that they need. These carriers bring you flexible premiums that never increase and amazing benefits that never decrease.

If you’re a senior and you are finding it difficult to get a life insurance policy, we have access to Level, Whole and Guaranteed funeral insurance policies.

No matter your financial state or medical conditions, we can find you a senior life insurance policy in minutes.

Don’t be afraid to contact us at Final Expense Benefits for a free consultation, M-F 9-5.

Our number is: (866) 311-4338

Company 50 y/o Male 50 y/o Female 60 y/o Male 60 y/o Female 70 y/o Male 70 y/o Female

These figures were obtained from the NFDA and are estimates only. For a detailed quote, please contact an agent. 

How much does a funeral cost?

One may not expect the tremendous amount of financial decisions involved with a funeral. In the United States, the average cost of a funeral varies state by state and depends on what your final wishes are. Depending on the extravagance of such, funerals can range anywhere from ~$2,000 all the way past $12,000, and is only increasing as the years go on.

When forced to pay for funerals out of pocket, the most common payment method is a credit card, which as you know, generates a considerable amount of interest depending on the pace of the monthly payments as well as the rate administered to you by your credit card company. $12,000 on a credit card with an interest rate of 10%, equates to a monthly payment of $387 over 36 months, or three years. Compared to Funeral Insurance, which on a simplified plan would introduce itself at just 42$/month for a 60-year-old woman. 

In today’s world, it is not uncommon for a proper funeral to be upwards of $12,000 but it depends on if the body is buried or cremated. Caskets an urns alone can cost hundreds and thousands of dollars.

With proper planning, these expenses can be minimized or in most cases, taken care of. Luckily, seniors have access to funeral insurance that is designed to cover these out of pocket expenses and in some cases, leave their families with a little extra.

Again, the way in which you use your Funeral Insurance payout is at the discretion of the beneficiary mentioned in the policy. 

Funeral Expense Invoice

I have Pre-existing Health Conditions, do I still Qualify?

Most Definitely. Here at Final Expense Benefits, we specialize in offering every single individual we come into contact with the best possible option for them (as per our resources). Depending on the pre-existing conditions, you may even qualify for a simplified issue plan – the plan with the highest reduction to your rate. Depending on the severity of these pre-existing conditions, as well as a few other factors, your rate may be adjusted as seen fit by the insurer. As Funeral Insurance always accepts applicants meeting the minimum requirements, we guarantee to at least provide you with options that you can choose from at your discretion.

Alternatives to Funeral Insurance

Although there are a tremendous amount of Life Insurance Types provided by the insurers of America, we feel as though these three options would provide the most competition for funeral insurance specifically in the case of untimely circumstances. 

Whole Life
Whole Life Insurance is a policy meant to provide lifelong coverage for the specified beneficiary. The payout is decided upon and is guaranteed to your beneficiary, regardless of when you die. This is a predictable policy meant to capitalize on the prevalence of time involved with this policy, as the cash value accumulates at a steady rate until the eventual payoff. You can get more overall coverage with this policy than say Funeral Insurance, but, you have to invest more time for a greater payoff. 

Term coverage usually aligns itself with individuals who have a specific financial goal, such as paying off loans or a mortgage. One will agree to a term length, anywhere from 5-30 years, as well as the amount of coverage. Keep in mind, that your insurance will expire at the end of this term, although one may renew this policy at any time in most cases.


Another whole life option, offering itself as sort of a middle ground between your average whole life policy and Funeral Insurance, as this coverage type doesn’t accumulate funds as aggressively, although it is less expensive than traditional coverage. Essentially, you get what you pay for.

Is Funeral Insurance Worth It?

We at Final Expense Benefits certainly think so. The downsides to Funeral Insurance are reasonable and there aren’t any hidden clauses meant to derail beneficiaries, at least not in the description of the policy itself. Funeral Insurance hardly puts a dent in your monthly expenses and can produce up to $50,000 in extra coverage in the case of any untimely circumstances. Again, this amount may be used at the discretion of the beneficiary, so there is no one monitoring how the money is used. 


We know that funeral costs are unexpected and expensive. The best thing we can do is plan ahead and make sure that our families are taken care of when we pass away. Funeral Insurance only benefits those dealing with unfortunate circumstances and helps create a legacy you can be proud of.

Here at Final Expense Benefits, we specialize in assisting seniors with life insurance. No matter your age or current pre-existing conditions, we will be sure to find you a plan to provide you and your family, peace of mind.

Consultants would love nothing more than ease your mind, give us a call at

(866) 311-4338, M-F, 9-5.  

Frequently Asked Questions

Is Funeral Insurance the Same as Life Insurance?

Not quite, although very similar. The main difference between the two concerns the monthly premium as well as the maximum for coverage.

Life insurance, How Much Do I Need?

This is going to depend on your circumstances, although you can never go wrong with a $50,000 policy. Monthly premiums will remain affordable and your beneficiary with be able to afford the most extravagant funeral expenses and then some.

What does a Funeral Policy Cover?

Although marketed towards funeral expenses, technically they can be used in any way desired. No one is actually monitoring where the money goes. As long as premiums are paid, payout will be received.

Are Life Insurance Proceeds Taxable?

As the coverage amount isn’t technically an asset until paid, we’d say in most cases, no. Interest is another story though, as this is always taxable in the eyes of the law.

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