Cremation Insurance: What Is It & How Does It Work?

Cremation Insurance
Cremation Insurance: What Is It & How Does It Work?

When preparing for the expenses associated with death, it is important to know how much to budget for. Funeral costs vary depending on what state you live in and if you would like a traditional burial or cremation.

Cremations can cost between $700 – $7,000, which can be a financial shock for unexpected loved ones. Fortunately, there are ways to plan for these expenses responsibly.

What Is Cremation Insurance?

Cremation insurance helps seniors prepare for the inevitable financial aspect of their own funeral while offering a cost-effective way to pay for coverage. Monthly premiums never increase, and coverage never decreases, giving the policyholder peace of mind that they cannot outlive their policy and can afford payments into the future. 

Cremation insurance is a type of life insurance for seniors. Both are marketed using the following names.

  • Final Expense Insurance
  • Burial Insurance
  • Funeral Insurance

How Does Cremation Insurance Work?

Cremation insurance is a type of final expense whole life insurance. This means your policy will come with three permanent benefits.

Coverage Lock: Your policy will never terminate or expire. This allows seniors to have peace of mind knowing that they will never outlive their life insurance coverage.

Price Lock: The monthly premiums will never increase. This feature allows policyholders to know exactly how much their monthly premiums will be moving forward.

Builds Cash Value: With every payment made, a portion will go towards the cash value. Over time this amount will grow and can be borrowed from if the policyholder chooses.

Senior hand piggy bank

How Much Does Cremation Insurance Cost?

A cremation insurance policy can be bought for $10 – $70 per month on average. Depending on how much coverage is taken out and your medical history, the final expense insurance quotes can vary.

Listed below are non-smoking rates for healthy individuals with a simple medical history.


Monthly Premiums

Age $3,000 $5,000 $7,000
50 $10 $14 $18
55 $11 $15 $20
60 $12 $18 $24
65 $15 $22 $30
70 $18 $28 $38
75 $24 $38 $52
80 $32 $51 $70
85 $43 $70 $96


Monthly Premiums

Age $3,000 $5,000 $7,000
50 $11 $17 $22
55 $13 $20 $26
60 $15 $23 $32
65 $19 $30 $41
70 $25 $39 $53
75 $32 $52 $71
80 $44 $71 $99
85 $60 $98 $136

Should I Prepay for my Cremation?

Prepaid funerals is an honorable and proactive thought. There are, however, important items to be aware of before writing a check to a funeral home.

Business Closes: The funeral home is a business, and this comes with risk. In certain situations, if you prepay for your cremation, you will be solely relying on one business to uphold its financial commitment when you pass away.

Changing Final Wishes: Prepaying requires you to decide your final wishes years in advance. There will likely be changes in how you would like to be celebrated or even change where you live. If this happens, you may not be able to receive a refund.

Funds Not Flexible: The payment can only be used for specific items when prepaying for your cremation. This can leave family members to pay out of pocket for items like final bills and medical expenses.

Funeral and cremation insurance, in general, is much more flexible and mobile than prepaying with a funeral home.

man and woman calculator

How Much Cremation Insurance Do I Need?

Cremation costs vary depending on which type of service you choose. There are three standard cremation options, and each comes with a different price point.

Cremation without Ceremony (Direct Cremation)

A direct cremation happens in a matter of days after someone passes away. There is no embalming or viewing, and it is the most affordable option when planning end-of-life costs.

Price: $700 – $1,300

Cremation with Memorial Service

Having a memorial service allows for loved ones to pay their final respects and celebrate your life. However, your cremated remains do not need to be present.

Price: $2,500 – $5,000

Cremation with Traditional Service

This option is a full-service traditional funeral. A casket rental and embalming of the body will be part of the ceremony. This option blends a traditional service and cremation. After the ceremony and viewing, the deceased’s remains will be cremated.

Price: $5,000 – $7,000

Other Final Expenses

There are other items that cremation insurance can cover. When calculating how much coverage is needed, keep in mind hidden expenses that could be easy to forget.

  • Post Mortem Expenses
  • Medical Bills
  • End-of-Life Care
  • Outstanding Bills
  • Legal Expenses
  • Leaving an Inheritance
  • Charity Donations

How do I Find the Best Cremation Insurance?

Finding the best cremation insurance companies will save you money and assure your payout will be distributed to your beneficiary. Working with an independent agent with access to multiple carriers will be the top way to find the best coverage for funeral expenses.

family walking

FAQ’s About Cremation Insurance

Can I Buy Cremation Insurance?

Cremation insurance is an affordable and accessible product. Seniors can cover their funeral costs for a low monthly payment and protect family members from any financial burden.

Be cautious of policies that advertise as great options for cremation insurance but raise in price and expire when you reach a specific age. AARP cremation insurance has this form of marketing for their Level Term plan and is not the best option for most seniors.

How do you Cover Cremation Costs?

Using a funeral insurance plan designed for cremation expenses is the best way to prepare for end-of-life finances. Cremation costs can range from a few hundred dollars up to the thousands. Having these costs planed for will protect loved ones from taking on unexpected costs.

What is the Cheapest way to be Cremated?

The most cost-effective process is direct cremation. There is no service with this type of end-of-life planning, and it can be completed for as low as $700, depending on the provider.

Can I Buy Cremation Insurance for my Parents?

Buying cremation insurance for parents is possible and is a popular option for many children. There are, however, legalities that need to be followed to make the policy legal.

The child can pay for the monthly premiums, but the proposed insured must sign their name and give legal consent for the policy. There will also need to be insurable interest for the contract to be valid, which exists in a familial relationship.

Why Work with Willamette Life?

Our only focus is helping clients secure final expense and cremation life insurance. Willamette Life agents are experts in the field who strive to be friendly and informative. No matter your current health or medical history, our team will be able to find a plan right for you.

Contact Willamette Life at 844-576-0019

senior woman smiling in purple shirt

Final Thoughts

a. Cremation insurance is a simple and affordable way to prepare for funeral costs. For a low monthly payment, seniors can remove any financial burden family members may otherwise take on.

b. Determine which type of cremation is right for you and calculate how much coverage will be needed. This will make sure all expenses are covered with no leftover costs.

c. Work with a respected independent agent who has access to multiple carriers to help secure the best coverage at the lowest cost.

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