Funeral Insurance – Best Rates, Reviews and Recommendations
Which funeral insurance companies and policies are the best? You have a lot of choices when it comes to funeral insurance (also known as burial insurance or final expense insurance.) We are here to help make sense of your options and choose the best funeral insurance policy for you.
Funeral Insurance Basics
- Funeral insurance is a small, whole life insurance policy that can cover end of life expenses. It is also referred to as final expense or burial insurance.
- When you die, the value of the policy is paid to your family members in cash, tax-free.
- They can use this money for anything; however, most policies are purchased for the purpose of paying for funerals, burials and any other final expenses.
The Benefits of Funeral Life Insurance
The benefits of burial or funeral insurance include:
- A quick payout of cash in the event of your death.
- Flexibility to use the payout benefit however your beneficiaries like.
- A small emergency fund. (The policy will eventually build up a cash value that you can access.)
- Easy applications and broader approval than other forms of life insurance. (No medical exams, guaranteed coverage options available).
- Premiums stay level. (Your cost-per-month will not increase).
- The face value (payout) will not decrease over time.

Competitive Carriers / Insurance Companies
The best funeral insurance policy for you will depend on your needs and purchasing circumstances. Often, rates are based on simple health underwriting, gender and age. Some companies are more competitive for some people depending on their ratings.
Some of our recommended insurance companies include:
- Mutual of Omaha
- Foresters
- Transamerica
- Royal Neighbors
Funeral Insurance Cost
The cost of your funeral / final expense policy will depend on how much cash benefit you will need when you die and your underwriting situation when you purchase it. Your age is a primary factor on how much your policy will cost.
Frequently Asked Questions – FAQ’s
Is the Policy Payout Taxed?
Funeral / Burial Insurance is tax-free. Just like any other life insurance policy (that follows the rules set by the U.S. government), you do not have to pay taxes on the money paid out by your policy.
What is the Difference Between Insurance vs Prepaid Plans?
Final expense / burial insurance is different than buying a prepaid funeral plan, burial plot or cremation service. You can directly prepay for end of life services at various service providers, funeral homes and burial locations.
Your insurance cash payout is not prepaying for any vendors or locations. It is just a lump sum paid to your family (or beneficiaries) for them to use as they wish.
You can use a prepay plan in addition to funding a life insurance plan, or as a stand-alone option. Many people like the freedom of their family being able to use the life insurance money as they wish. Most often, the circumstances and associated costs of your death are unpredictable. You can alleviate stress for your family by giving them flexibility in using your policy funds.
Can I Buy Funeral Insurance Online?
Yes, the simplified nature of these life insurance applications do afford the opportunity to purchase a policy online in some instances. However, since there are many options available from multiple companies, we suggest you talk to an independent insurance agent.
Independent insurance agents will often represent multiple companies and can listen to your needs and direct you to a company that will have the best plan for your unique needs.
What Does Funeral Insurance Cover?
These policies are typically purchased to cover the following:
- Funeral Expenses
- Burial Expenses
- Caskets
- Rental Fees
- End of Life Medical Fees
- Pay off small debts
However, as mentioned before, this money does not have to be used for any particular thing. Your beneficiaries are provided a lump sum of cash when you pass, and they have the right to use the money for whatever they may need.
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