5 Tips for Finding the Best Funeral Insurance for You

Nov 8, 2021 | Burial Insurance | 0 comments

Did you know that the average funeral costs $7,640? While it is not something we enjoy thinking about, funeral insurance is something everyone needs to consider. It allows you to approve your posthumous plans, manage the costs, and let your loved ones grieve.

We’ve created a list of 5 tips to consider when finding the best funeral insurance for you to ensure your family is aware of your wishes and to ease the process for your loved ones.

1. Type of Funeral Insurance Plan

There are two basic types of funeral insurance to consider. Both help set aside funeral insurance cost funds, but there are differences.


The policy paid out to the benefices and may include:

  • Funeral home services
  • Transportation
  • Burial plot
  • Casket
  • Cremation

The beneficiary may also use the funds to pay off legal services, medical bills, debt, or mortgage.


These plans are given directly to the funeral home rather than a beneficiary and get paid out right after your passing.

This plan allows people to save money by paying for cheaper services when they enroll. If you pay more than the cost of your funeral, however, your loved ones do not receive the difference.

2. Type of Payment

When enrolling in funeral life insurance with funeral insurance companies, you will have two payment options. Keep reading to learn more.

Immediate Payout

Immediate payout is when the funeral insurance pays out completely when the policyholder passes away. For example, if you held a $20,000 burial policy and died, that amount is payable in one sum to your beneficiary.

Graded Payout

Unlike an immediate payout, a graded payout only pays the beneficiary a percentage. For example, when the policyholder dies, the beneficiary will receive 20% of the entire value if they passed within the first year and it increases with time.

3. Type of Premiums

A premium is an amount you’ll pay each period. A breakdown of the types of premiums is below.

Stepped Premiums

Calculated each year upon renewal of your policy and your gender, age, and policy size. Stepped premiums also increase as you get older.

Leveled Premiums

These premiums are set using your gender, age, and the size of the policy. These rates will never change.

Capped Premiums

Capped premiums have a set monetary or age limit. Once it’s met, you will no longer pay premiums.

Payout Guarantee Premiums

This premium guarantees your beneficiary payment. The payment is for whichever is higher between the amount you’ve paid or the original insured amount.

4. Age

Funeral insurance plans are often suited for people ages 50 – 85, but some companies offer plans to people as young as 30. However, don’t wait too long to enroll in funeral expense insurance since plans increase the price as you age.

5. Expiration Date

In addition to age, funeral insurance premiums consider other factors. Factors that can increase the price and change the expiration date include gender, policy size, and your current health.

Enroll in a Funeral Insurance Plan Today

Knowing how to select funeral insurance will help you make sure you choose the best policy for your needs. While there are many options, it’s essential to consider what’s best for your loved ones.

Contact USA Life to request a custom quote today.

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