Cremation Insurance What it is & How it Works

If you are wondering what exactly is cremation insurance or how does it work? You are in the perfect spot for answers. Cremation insurance is simplified issue whole life insurance & guaranteed issue life insurance. Both are permanent whole life policies that never expire, build cash value, have level premiums(premiums never increase) and level death benefits(death benefit never decreases).

The requirements to be eligible for simplified issue plans are answering health questions on the companies life insurance application. Consent to medical & prescription history checks is also required with no medical exam. These plans have no waiting periods for policy payout.

Guaranteed issue plans have no health questions or health & prescription history checks. There is a 2 year waiting period for guaranteed issue before it pays out.

According to

53.1% of people in 2018 elected for cremation services.

In this article, learn the costs, forms of cremation, best companies to purchase from and how to buy cremation insurance.

Extended Reading: Final Expense Insurance for Cremation, Cremation Insurance for Seniors

Cremation Insurance & How it Works

If you don’t know what “cremation insurance”, “funeral insurance”, “burial insurance” or any of these specific terms mean they all mean the same thing.

Insurance for cremation is final expense life insurance which is a simplified or guaranteed issue whole life insurance policy with face amounts between $2,000 – $50,000 depending on what company you select and qualify for.

Final expense whole life insurance is designed to cover the costs of a funeral which includes cremation which is why many providers call it cremation insurance.

Insurance for cremation is the best way to pay for your funeral when you die because the whole life insurance policy will pay your beneficiary directly via a lump-sum death benefit then they can use the money to pay your final expenses.

Any money left over after your cremation expenses are paid is theirs to keep to use for anything they want or need.

This type of insurance for cremation is designed to cover your end-of-life expenses like the costs of a burial, medical bills, out standing debts, etc.

Keep in mind there is no medical exam to qualify for this life insurance you simply answer the health questions on the life insurance application then the life insurance company will look at your medical and prescription history.

They are looking to see if you answers line up with what has been reported on your medical records. If everything checks out you will be approved for life insurance with no waiting periods or if you are in poor health life insurance with a waiting period.

Cremation Insurance Costs for Ages 19 – 90

Now realistically since cremations are significantly less expensive than burials you need less life insurance coverage. A $5,000 life insurance policy or a little over should be more than enough coverage to pay for cremation expenses.

A cremation final expense policy is going to cost on average between $20-$100 monthly for seniors between the ages of 55-85 years old.

Your age, health, lifestyle such as tobacco usage and the amount of coverage you purchase determine the monthly cost of cremation insurance.

Below is a table listing the cost of a $5,000 life policy for cremation expenses. These are costs for funeral coverage for young adults and funeral coverage for seniors over 80.

Age$5,000 Male Non Smoker$5,000 Female Non Smoker$5,000 Male Smoker$5,000 Female Smoker

Most Basic & Cheapest Form of Cremation

Direct cremation is the most basic form of a cremation which also makes it the most affordable. It excludes any kind of memorial and other funeral services. The body is cremated immediately and returned to the respective family members.

Cheapest Cremation TypeAverage CostSource
Direct Cremation$2,

Best Cremation Insurance Policies

When it comes to selecting the best cremation insurance to cover the cost of your final expenses it is important to work with the best life insurance companies available in your state.

Here at ParamountQuote, we represent all the top major carriers in all 50 states nationally. When you speak with one of our independent agent’s they will easily help you find the best coverage available in your area.

There are a few factors to consider when looking for the best insurance plans.

  • Are they A-Rated?
  • Been in Business for over 50 years?
  • Do They Have a Great Track Record?
  • Does The Policy Have a Waiting Period?
  • What Other Benefits Come with my Policy?
  • Is it Easy to Qualify?


This means the insurance company has received a high satisfaction rating from the insurance industry. These ratings are earned not given and a company that has maintained an A-rating shows they have been doing business the right way for a long period of time.

They have excellent customer satisfaction which factors into this high rating.

In Business for over 50 Years

This proves the stability of the company. A company that has been in business for over 50 years is stable and likely to last indefinitely. This proves you can trust this company will be there for your family long after you pass away which gives them and yourself the peace of mind you deserve.

How is their Track Record?

An insurance company with a bad track record will not be able to maintain an A-rating this is why other companies may have a B-rating or a C-rating depending on the carrier. A company that maintains its A-rating will have a great track record of paying clients claims quickly over a long period of time.

This shows they will pay out the death benefit quickly to your family when your time comes.

Is There a Waiting Period?

A waiting period depends on you and your health conditions. When it comes to funeral insurance this insurance is a type that has easy underwriting meaning they make it easy even for consumers with moderate health conditions to obtain day one level coverage.

No medical exam or blood tests are required. They just look at your Medical Information Bureau Health Report and a Prescription check that’s it.

Furthermore, unlike fully underwritten traditional life insurance cremation insurance policies give you an approval or denial the day you apply. This means no waiting for weeks to know if you’re approved.

We also do not recommend policies advertised on TV like Colonial Penn. Most TV advertised policies automatically have a 2-year waiting period which does not best serve you.

What Other Benefits Included?

Cremation policies can come with additional benefits these are called insurance riders.

These function as add ons to a policy to provide additional benefits.

These typically include:

  • Accidental Death Rider
  • Accelerated Death Benefits
  • Grandchild Riders
  • Waiver of Premium Riders

Accidental Death Rider

The policy could pay double or triple the face amount if you pass away in an accident.

Accelerated Death Benefits

If you become terminally ill you can borrow from your face amount early to pay for anything that you may need. Extra bills or begin pre-paying your cremation with the policy.

Grandchild Riders

This allows you to put down grandchildren under your policy and get them covered until they are 18 years of age.

Waiver of Premium Rider

If you become terminally ill or disabled this will waive the premium on your policy so you do not have to pay to keep your policy in force.

Easy to Qualify?

When it comes to cremation insurance and burial insurance it is very simple and easy to qualify.

These insurance plans do not require a medical exam or physical. All these companies do is look into your Medical Information Bureau Health Report and a Prescription check using your Social Security Number.

If everything looks good they will approve you within minutes.

Furthermore, most riders can be included in your policy for free.

Life Insurance Companies for Cremation Insurance

We represent all the major burial insurance companies nationwide their rates are competitive which guarantees you the best rate for cremation insurance. These are household names with the best cremation insurance policies in the industry.

Shop Cremation Insurance

Compare over 10 Companies

How Much is Cremation Insurance?

The rates for cremation insurance vary because they are based on your age, health, and lifestyle.

The price for a 50-year-old consumer in perfect health will be much different from a 65-year-old. This is based on the mortality of the consumer.

A person who is 50 years old is expected to live much longer than a 65-year-old therefore their premiums are cheaper.

A good ballpark figure to go by would be between $50 – $100 for policies between $10,000 to $20,000.

Furthermore, your health also plays a factor in the cost of your coverage.

Graded Policy

If you are a consumer with health conditions such as COPD & Congestive Heart Failure then your option of coverage would be graded considering those serious health conditions.

A graded policy can range between $65 – $120 for amounts between $10,000 to $20,000.

Smoker Rates

If you smoke cigarettes this is an incentive to quit right away. Tobacco can increase your premiums significantly typically about 30% higher.

So if you have a decent health condition but smoke cigarette’s then your policy will be between $65 – $125 for $10,000 to $20,000.

To isolate an accurate price rate one of our agents would have to speak with you to know more about your health conditions. They are trained to isolate the best rate for your unique health profile. Fill out the form to your right to get started.

How Can I Buy Insurance?

Buying coverage is very simple and easy.

First, fill out the form to your right. Once you have filled in some basic information you will see accurate rates from all the top-rated companies in your area. At that point, one of our agents will contact you via phone call.

Once you are speaking with one of our agents they will begin the field underwriting process by asking you health questions and determining your rate class. They will confirm all of your basic information confirm the coverage amount you are applying for and begin the enrollment process.

Furthermore, make sure you have a list of any medications you take when speaking to the agent to make the process much faster.

There are 2 different ways to enroll depending on the carrier selected.

Voice Signature – Conducted by the agent, you, and the insurance company. You will speak with the carrier and apply your voice signature to all of the necessary forms.

Emai Signature – The agent will email you a Docusign for you to click on and sign your name to all of the necessary forms.

Once all forms are completed an instant decision is reached and the carrier will either approve or deny the application.

This is all done in 30 minutes or less fill out the form to your right to speak with one of our agents and get started.