This is the question most insurance articles won’t answer directly. As an independent broker who sees seniors make both good and bad burial insurance decisions every week, here is the honest truth about when burial insurance is worth buying and when it isn’t.
The average funeral costs $8,000–$12,000. For families without life insurance or significant savings, this is a genuine financial crisis at the worst possible time. Burial insurance solves exactly this problem at a cost most seniors can manage.
Premiums are fixed for life. Unlike term life insurance that expires, burial insurance is permanent whole life coverage. The premium you pay at age 65 is the premium you pay at 85. It never increases, and the coverage never expires.
Most seniors can qualify regardless of health. Even with diabetes, COPD, heart disease, or cancer history, burial insurance options exist. Simplified issue carriers cover most common health conditions at level benefit rates. Guaranteed issue covers virtually everyone ages 50–80 as a last resort.
It removes the burden from family. The most common reason seniors cite for wanting burial insurance is not financial protection — it’s not wanting their children to scramble for money while they’re grieving. That peace of mind has real value beyond the dollar calculation.
The monthly cost is manageable. For a healthy 65-year-old female, $15,000 in level benefit coverage costs approximately $56–$76 per month depending on carrier. That is $1.87–$2.53 per day — less than a cup of coffee. At those rates, the math makes sense for most seniors.
If you already have coverage or assets, you may not need it. A senior with $50,000 in a savings account, an existing life insurance policy, or significant home equity has end-of-life costs covered. Adding burial insurance on top is redundant spending.
TV advertiser rates make burial insurance a poor value. Colonial Penn’s $9.95 plan and Lincoln Heritage’s Funeral Advantage cost 30–55% more than independent broker alternatives for the same death benefit. A senior paying $149/month for Colonial Penn coverage that costs $76/month through an independent broker is effectively overpaying $876/year for the same benefit. In this scenario, burial insurance is “not worth it” — but only because the buyer chose the wrong carrier, not because burial insurance itself is a bad idea.
A 2-year waiting period changes the value equation. A graded benefit policy purchased by a senior in poor health may never pay out its full death benefit if the insured passes away within 2 years. The family receives only premiums plus interest. In this specific scenario, the insurance “wasn’t worth it” in hindsight — though this is unpredictable by definition.
Here is an honest actuarial perspective. Insurance is not designed as an investment — it is a risk transfer tool. But it is worth understanding when burial insurance premiums will have “paid off” versus when total premiums paid will exceed the death benefit.
| Scenario | Coverage | Monthly premium | Break-even point | Note |
|---|---|---|---|---|
| Female, 65, healthy | $15,000 | $58/mo (Mutual of Omaha) | ~21 years (age 86) | Average female life expectancy 83–85 |
| Female, 65, healthy | $10,000 | $38/mo (Royal Neighbors) | ~22 years (age 87) | Premiums paid = $10,032 at age 87 |
| Male, 70, healthy | $15,000 | $100/mo (Mutual of Omaha) | ~12.5 years (age 82) | Average male life expectancy 80–82 |
| Female, 75, healthy | $15,000 | $103/mo (Mutual of Omaha) | ~12 years (age 87) | Near average female life expectancy |
The right way to think about burial insurance: You are not trying to “beat the insurance company.” You are buying certainty — the certainty that regardless of when you pass, your family has $10,000–$25,000 available immediately to cover end-of-life costs without hardship. The break-even point is irrelevant if the alternative is leaving your family to scramble for money during grief.
Rule 1: Always use an independent broker. The difference between buying from a TV advertiser and buying from an independent broker is 30–55% less per month for the same death benefit. An independent broker comparison takes 10 minutes and is free. There is no scenario where calling Colonial Penn or Lincoln Heritage first is the right move.
Rule 2: Always try to qualify for level benefit first. Graded benefit (2-year waiting period) coverage is a last resort for applicants who truly cannot qualify anywhere else. Most seniors with common health conditions — diabetes, COPD, heart history, cancer history — can qualify for level benefit through the right independent carrier. Never accept a waiting period without checking level benefit options first.
Rule 3: Buy only what you actually need. If your only goal is covering a $10,000 funeral, buy $10,000–$15,000 in coverage. Don’t let any agent pressure you into $25,000 or $50,000 coverage when $15,000 solves your actual problem at half the premium. The right coverage amount is the one that covers your real anticipated end-of-life costs, not the maximum you could technically afford.
✓ The bottom line: Burial insurance is worth it for most seniors who lack existing coverage and whose families would face genuine financial hardship from unexpected funeral costs. It is not worth it when purchased from TV advertisers at above-market rates, when accepting a waiting period that could have been avoided, or when you already have sufficient assets to self-insure. A free 10-minute independent broker comparison tells you whether burial insurance makes financial sense for your specific situation.
Call me and I’ll give you the same honest answer I give every senior — even if the answer is that you don’t need it. No pressure, no obligation.
Get My Free Quote →Call me and I’ll give you an honest answer — even if the answer is that you don’t need it. No pressure. Larry answers personally.