Insurance Curator Planning ahead for final expenses gives seniors and families peace of mind and keeps funeral and burial costs from becoming a financial burden. This guide explains the most common final expense (burial) insurance options for seniors 65+ in the USA, shows typical costs, compares policy types, and names specific companies and resources so you can get fast, accurate comparisons.
Why final expense insurance matters (and how much you really need)
Funeral and burial costs in the U.S. vary by location and service level. According to the National Funeral Directors Association (NFDA), the median cost of a funeral with viewing and burial was about $7,848 (most recent NFDA data). Source: NFDA.
Seniors often aim to cover:
- Funeral service and casket
- Burial or cremation costs
- Cemetery plot, marker, or urn
- Administrative and final medical bills
- Small legacy or debt payoff
A common recommendation is $5,000–$25,000 in face value for final expense coverage depending on local funeral costs, whether you’ll be buried or cremated, and whether you want to cover small outstanding bills. In many U.S. markets—Florida, Texas, and California—median costs can be near or above the national median, so factor local prices into your decision.
Policy types: quick comparison
| Policy Type | Typical Face Amount | Medical Questions? | Waiting Period | Typical Monthly Cost (age 65 non-smoker) | Best For |
|---|---|---|---|---|---|
| Guaranteed Issue Whole Life | $2,500–$25,000 | No | Often 2–3 years full-benefit waiting period | $30–$120 (varies widely) | Seniors with major health issues |
| Simplified Issue Whole Life | $5,000–$40,000 | Short health questionnaire, no medical exam | Usually immediate after issuance | $30–$80 | Seniors in reasonably good health |
| Traditional Underwritten Whole Life | $10,000+ | Health exam / full underwriting | Immediate | $25–$75 | Lower premiums if healthy |
| Pre-Need / Funeral Trust | Set by funeral home | N/A | N/A (prepaid) | One-time or monthly prepaid plan | Those who want to lock service & price |
Notes: Premium ranges are illustrative—actual premium depends on company, state, exact age, gender, and health. For typical rate guidance see Bankrate and AARP’s final expense resources. Bankrate Final Expense Guide and AARP Final Expense information.
Guaranteed Issue vs. Simplified Issue: Which should you pick?
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Guaranteed Issue: No health questions, guaranteed acceptance. Ideal if you have major health conditions (e.g., cancer, COPD). Tradeoff: higher premiums and often a 2–3 year graded death benefit (beneficiary receives premiums plus interest if death occurs during waiting period).
- Common providers: Colonial Penn (guaranteed acceptance product), Gerber Life Guaranteed Issue.
- Example offering: Colonial Penn’s guaranteed-acceptance product typically offers modest face amounts (often up to $25,000). See Colonial Penn for specifics: https://www.colonialpenn.com/guaranteed-issue-life-insurance
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Simplified Issue: Short health questionnaire, no exam. Immediate full benefits, lower premiums than guaranteed issue for applicants who qualify.
- Common providers: Mutual of Omaha Final Expense, AIG/Globe Life simplified whole-life options.
- See Mutual of Omaha final expense overview: https://www.mutualofomaha.com/life-insurance/final-expense-insurance
Real-company examples and what they offer
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Mutual of Omaha (Final Expense)
- Product: Simplified-issue final expense whole life.
- Face amounts: typically $5,000–$40,000.
- Why consider: Broad availability in many states (including Florida, Texas, California) and competitive pricing for health-qualified seniors. See: https://www.mutualofomaha.com/life-insurance/final-expense-insurance
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Colonial Penn (Guaranteed Acceptance Life Insurance)
- Product: Guaranteed-issue life—no medical questions.
- Face amounts: historically up to $25,000 for guaranteed-issue policies.
- Why consider: Guaranteed issue for poor health, national marketing presence. See: https://www.colonialpenn.com/guaranteed-issue-life-insurance
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Gerber Life (Guaranteed Issue/Whole Life)
- Product: Guaranteed issue whole life for older applicants.
- Face amounts: typically smaller face amounts suited for burial expense coverage.
- Why consider: Straightforward guaranteed-issue product with established brand. See: https://www.gerberlife.com/whole-life/guaranteed-issue-life-insurance
Prices vary by state and demographic. For current rate comparisons, consult company product pages and aggregator tools such as Bankrate, which offer sample premium ranges and market comparisons. Bankrate final expense guide
How much will this cost? Typical premiums and what affects them
Typical premium drivers:
- Age at purchase: older = higher premiums
- Gender: women generally pay less than men
- Health / tobacco use: non-smokers pay significantly less
- Face amount (coverage size): larger = higher premiums
- State of residence and insurer’s rate filing in that state
Representative ranges (illustrative—use company quotes for exact pricing):
- Age 65 non-smoker: $25–$80/month for $10,000 simplified-issue whole life.
- Age 75 non-smoker: $60–$180/month for $10,000 simplified-issue whole life.
- Guaranteed-issue policies often cost significantly more for comparable face amounts or have graded benefits for the first 2–3 years.
For shopping and accurate samples, refer to Bankrate and insurer rate pages: Bankrate and company links above.
State-specific notes: California, Florida, Texas (examples)
- Florida: High senior population and higher demand for funeral services can push local costs above the national median. Shop multiple insurers licensed in Florida to find competitive rates.
- Texas: Wide insurer competition—many national final-expense plans available; rural vs. urban funeral costs can differ substantially.
- California: Regulations and high cost-of-living areas may increase pre-need and funeral costs. Consider locking services with a pre-need contract if you want price guarantees.
Remember: insurance rates are filed and regulated at the state level; some products or premium tiers may not be available in every state.
Alternatives & complementary options
- Pre-need funeral contracts through a funeral home (locks services and sometimes price).
- Burial trusts or savings earmarked for final expenses.
- Adding a small term rider or low-face permanent policy if you qualify for better underwriting (may be cheaper than guaranteed issue).
- If you’re already reviewing Medicare options or broader senior coverage, check related guides like:
How to choose: 5-step checklist
- Estimate local funeral/burial costs (ask 2 local funeral homes or use NFDA averages). NFDA
- Decide face amount (typical: $5,000–$25,000).
- Check if you qualify for simplified underwriting — it usually lowers premiums.
- Compare 3–5 quotes across insurers (Mutual of Omaha, Colonial Penn, Gerber Life, AIG).
- Read waiting period/graduated-benefit clauses for guaranteed-issue policies.
Bottom line
Final expense insurance offers a practical, lower-cost way to cover burial and funeral expenses and spare loved ones financial stress. If you’re in good health, simplified-issue whole-life policies from insurers like Mutual of Omaha often deliver the best price-benefit. If health problems prevent underwriting, guaranteed-issue products (Colonial Penn, Gerber) provide certainty at a higher cost and sometimes with a graded waiting period.
For accurate, state-specific pricing, get multiple quotes from the insurers listed and consult resources like NFDA for expected funeral costs and Bankrate/AARP for comparative guidance:
- NFDA funeral cost data: https://nfda.org
- Bankrate final-expense guide: https://www.bankrate.com/insurance/life-insurance/best-final-expense/
- AARP final expense info: https://www.aarp.org/money/insurance/info-2020/final-expense-plans.html
Make your decision based on local costs (Florida, Texas, California), your health, and whether you prefer guaranteed acceptance or better pricing with a health questionnaire.