Top Life Insurance Companies That Cover Funeral Expenses (2024)

Finding life insurance companies that cover funeral expenses can simplify one of the most confusing insurance topics. Funerals can be an unexpected and financially agonizing expense if you aren’t prepared.

We’ll help guide you by breaking down the average funeral expenses and different options to cover funeral expenses. Nobody should be indebted over the costs of a loved one’s funeral.

Keep scrolling to learn more about life insurance companies that cover funeral expenses, or enter your ZIP code above to get free quotes from top insurance companies near you.

What are the best life insurance companies that cover funeral expenses?

Many life insurance providers are available and willing to help cover funeral expenses. Covering major expenses like funerals is the main point of investing in life insurance to begin with.

According to the National Funeral Directors Association, the median funeral cost in the United States is about $9,135. However, many factors could raise or lower this cost.

Where you live and the services you need will play a major role in your total funeral expense. For example, funerals can be nearly twice as expensive in Hawaii, likely due to logistics.

Realistically, any of our top 10 life insurance companies can help cover funeral expenses. This includes companies like:

• MetLife
• Prudential
• MassMutual
• Transamerica

Beneficiaries can typically use a death benefit to cover funeral expenses. In some cases, a funeral service provider might require the death benefit to be signed to them with any excess being returned to the beneficiary.

Otherwise, many life insurance companies that cover funeral expenses will offer a policy designed solely to cover a funeral. These policies are typically referred to as final expense or burial insurance policies. (For more information, read our “Top Life Insurance Companies That Cover Everything“).

Is burial insurance worth it?

Burial or final expense insurance can be a valuable financial investment for those who don’t want to burden their loved ones with the high costs of a decent funeral.

What is burial insurance? Unlike a traditional life insurance policy, burial or funeral insurance has a low policy coverage amount and only applies to funeral-related expenses.

A traditional death benefit can be used to cover other expenses related to an entire estate.

Choosing the best burial insurance can be a challenge because prices vary by age, health, coverage amount, and more. Most people just want the most affordable policy.

The best life insurance companies aren’t necessarily the best burial insurance companies, either.

Colonial Penn burial insurance or AARP final expense insurance could be strong options, although neither company is well-known for a traditional life insurance policy.

What are the expected costs of burial insurance?

Funeral insurance costs do vary depending on similar factors to life insurance. However, since the policy coverage amounts are only a fraction of the amount, they tend to be much more affordable from month to month.

Sample Non-Smoker Burial Insurance Rates for $20,000 in Coverage

You’ll see above that, despite positive ratings and a well-known name, AARP burial insurance might actually be more expensive than other companies, like Foresters Financial or Transamerica.

This is a great example of why it’s important to compare rates from different insurance providers before you decide to buy a policy.

Of course, a well-known company like AARP will tend to have great financial strength ratings. However, many smaller companies could surprise you with their financial stability.

What are the pros and cons of burial insurance policies?

Burial insurance can be a great option for those looking to avoid paying a hefty monthly fee for life insurance while still providing some financial relief to beneficiaries.

The pros include low monthly expenses, no long-term commitments, and a specific death benefit that covers a major expense.

The cons pertain more to the beneficiaries, as they will be given a smaller death benefit that can’t be used for other expenses. If they are inheriting a large estate, this could become problematic.

As mentioned previously, a traditional life insurance policy will still usually cover funeral expenses. This means that term life insurance, whole life insurance, and universal life insurance policies could all serve as viable alternatives to final expense insurance.

At the end of the day, you’ll need to decide how much support your beneficiaries will need when you go.

The Truth About Life Insurance Companies That Cover Funeral Expenses

Realistically, there are very few life insurance companies that don’t cover funeral expenses. That said, there are many insurers that provide insurance benefits that only cover funeral expenses instead of a large death benefit.

By now, you should have a better understanding of how to choose the right life insurance companies that cover funeral expenses. Before you go, enter your ZIP code below to get free quotes from top insurers near you.