In the Lone Star State, life is a little bigger. From San Antonio to Amarillo and El Paso to Houston, this state represents all that is great about this country!
The item that is not always at the top of Texans’ minds is the cost associated with the end of life. Often families of the deceased are left to pay these inevitable bills.
This is where funeral insurance plans have helped so many Texas families.
12 Necessary Questions About Texas Funeral Insurance
Purchasing burial insurance in Texas is the same process that most other states have. Where things are slightly different in Texas is in their funeral laws, which we will get to later in this article.
1. What is Texas Funeral Insurance?
Funeral insurance is a type of whole life coverage in the state of Texas. This plan is intended to cover funeral expenses and is also known as burial insurance and final expense life insurance. You will hear these three names used to market the product, but there is no difference between them.
Since this coverage is a type of whole life insurance, it comes with three permanent benefits.
Coverage Lock: The coverage will never change, which is a critical feature when planning for your funeral expenses. The death benefit is guaranteed to the listed beneficiary as long as the premiums have been paid.
Price Lock: The monthly price is guaranteed to remain the same. Other products on the market like AARP burial term insurance will actually increase in price the older you get. For seniors on a fixed income, a price lock feature is of high importance.
Builds Cash Value: A portion will go towards the cash value account for each monthly payment made. Over time this account will grow, allowing the policyholder to borrow from it if they choose.
2. How is Burial Insurance Different from a Traditional Whole Life Insurance Plan?
Two specific features make all Texas burial insurance products unique.
Simplified Issue Underwriting: This underwriting process means there will never be a medical exam required to get coverage. This makes the application process much more simple and allows your policy to be active within a matter of days rather than weeks.
Lower Policy Amounts: Smaller death benefits equal smaller monthly payments. With traditional whole life insurance, the policy amount is much higher than final expense coverage. This means lower face amounts will give you a much more affordable monthly premium with the same great benefits that bigger insurance plans have.
3. What can the Beneficiary Use the Payout for?
Life insurance is state-regulated, but there are no rules or regulations on what funeral insurance can cover.
However, the typical items that a beneficiary will use the money on are the funeral service, cremation or burial, outstanding bills, legal expenses, charity donations, and leaving an inheritance.
4. How Much are Texas Burial Insurance Premiums?
Each insurance company sets its own prices, so quotes will vary based on the carrier. Prices are also determined by the underwriting standards that are set for each burial policy.
Below is a quote chart to give you a general idea of the cost of final expense coverage.
Texas Monthly Premium Range
$10,000 Death Benefit
|45||$23 – $34||$27 – $47|
|50||$24 – $39||$31 – $56|
|55||$28 – $47||$36 – $61|
|60||$33 – $54||$44 – $68|
|65||$41 – $66||$56 – $91|
|70||$53 – $80||$75 – $106|
|75||$72 – $116||$100 – $150|
|80||$98 – $190||$140 – $232|
|85||$136 – $220||$193 – $312|
5. How is the Price Calculated?
Four factors will determine the price of funeral insurance for seniors in Texas.
Health: Your health will dictate what burial insurance plan type you can qualify for. The healthier you are, the more economical the premiums will be.
Age: The older you are, the more at risk you become for health issues. With this specific product, once you are awarded coverage, your price will never change. However, the longer you wait to lock in coverage, the more the price will be.
Coverage Amount: The more coverage you take out, the higher your premiums will be.
Gender: Males will pay more for life insurance than females. There are many reasons for this, but the most obvious is that women on average live four years longer than men.
Ultimately the Texas Department of Insurance regulates and oversees the prices that consumers will pay.
6. Captive or Independent Agent: Which Should I Work With?
When applying for a policy, there are two types of agents you can work with. Both need to be licensed to sell life insurance in Texas.
This type of agent has a contractual agreement that allows them to represent only one insurance provider. An example would be your local neighborhood agent that represents a major company with high brand awareness.
This may seem like a logical choice but let’s pull back the curtain and discuss a couple of things that raise a red flag.
The first is that every single company has different underwriting standards. This means one company will cover a specific medical condition, but another company will deny you for this same condition.
The second is the monthly cost. Each company has a different price point, and going with a captive agent locks you into one company’s price.
An independent agent can represent as many Texas final expense insurance companies as they choose. This means the agent can find you the best burial plan at the lowest price for your specific health.
Choosing to work with an independent agent is a smart move because you will have more options and peace of mind knowing you are getting a plan optimized for you.
7. How do I Qualify for a Final Expense Policy in Texas?
The most reliable option would be to speak with a well-respected and highly rated independent agent. An agent with access to several life insurance companies will assist in finding the most suitable burial insurance plan at the lowest price.
8. How Old Can Someone be and Still Receive Coverage in Texas?
The majority of insurance providers in Texas will initially insure applicants until the age of 80 or 85. However, there are a few select providers who will award initial coverage until 90 years old.
Remember, the protection never expires once a policy is secured, this is just speaking on age at the time of application.
9. What is a Waiting Period, and how can I avoid it?
A waiting period is a time that the carrier will partially cover the policyholder. The insurance companies include a waiting period for high-risk cases to lower their financial liability.
The waiting period typically ends two years after the initial coverage date.
How it Works: If the insured dies within the waiting period, the beneficiary will receive a predetermined portion of the coverage amount. However, if the insured passes away after the waiting period has ended, the beneficiary will receive the entire final expense insurance death benefit.
Your best opportunity to qualify for funeral insurance with no waiting period is by working with an independent agent who has access to multiple carriers. This allows the agent to compare policies on your behalf based on your medical history.
10. Can You Purchase Policies for Parents Who Life in Texas?
You can purchase burial insurance for relatives. However, there are a few rules to follow. Your loved one will need to be involved in the application process. This means they will have to be able to sign their name and answer the medical questions.
You cannot take out a burial policy for parents or other loved ones without their consent.
11. What is a Texas Prepaid Funeral?
A prepaid funeral is a financial plan offered by the funeral home that allows you to plan your funeral arrangements. These contracts are governed by the Texas Financial Code (chapter 154) and have specific permit requirements. Make sure to fully understand the legalities before agreeing to a prepaid funeral contract.
12. How do I get a Quote for Texas Final Expense Insurance?
The simplest way to receive a price estimate is by using the quote tool on this page. Once you enter your basic information, it will show a list of companies and prices.
To know what funeral policies you qualify for, contact Willamette Life at 844-576-0019
What Is The Best Final Expense Insurance For Texans?
Every insurance carrier has different underwriting standards. This means that the best company for you could be completely different from the top option for your spouse or another family member. Finding the best burial coverage takes additional knowledge and understanding of what each provider will approve and deny when it comes to pre-existing conditions.
Finding the Best Company and Plan
The biggest factor in finding the best funeral insurance company will always be your health. Once you have found the right company that is a good fit for your medical history, three other factors should take priority.
Low-Cost: Finding the lowest possible price is easier now than ever. Just use the instant quote tool on this page to compare rates between different insurance providers.
Immediate Coverage: Protecting your family as soon as possible is important and will help secure the lowest rate possible. The team at Willamette Life will help find the best plan structure for you.
High Financial Rating: Always use companies with high financial ratings and reviews. Using AM Best companies with B+ ratings or better when buying Texas burial insurance is essential.
Texas Funeral Statistics & Facts
Average funeral costs in Texas can range over a wide variety of price points depending on several factors. Pricing for funeral services varies by city and the funeral home used. A typical burial in Houston or Midland is more expensive than elsewhere in Texas. The chart below shows average prices for cremation and burial for locations throughout the great state of Texas.
The average burial service in Texas is $7,861
The average cremation service in TX is $6,363
Not included in the price estimates:
- Cost of Headstone, Monument, or Marker
- Cemetery Property, Plot of Land, Columbarium, etc.
Texas Cremation Statistics
According to the National Funeral Directors Association, in 2020 Texans decided to be cremated just over 50 percent of the time. 2030 projections are expecting this number to increase to 68.4 percent.
Texas law prohibits cremation to take place less than 48 hours after death unless waived by a Medical Examiner or Justice of the Peace. Cremated remains can be kept or disposed of in one of the following ways.
- Scattered on private property if a consenting landowner
- Interred in a cemetery
- Placed in a columbarium
- Kept by the family in their home
- Scattered on uninhabited public lands or waterways
The average age at death in Texas is 76.6 for males and 81.7 for females.
National Average Lifespan:
- Males 76.3
- Females 81.4
Causes of Death in Texas
Listed below are the top 10 leading causes of death in the state of Texas, per the CDC.
- Heart Disease
- Chronic Lower Respiratory Disease
- Alzheimer’s Disease
- Kidney Disease
- Chronic Liver Disease/Cirrhosis
Everyone knows a loved one or friend who has struggled with one of these conditions. We never know when the time will come for our health to fail us unexpectedly.
When this happens, seniors need to be prepared so families can honor the deceased’s life without a financial burden looming.
Final Thoughts On Texas Burial Insurance
a. Texas funeral insurance is an affordable and valuable option to save for end-of-life costs. You and your family will have peace of mind for a low monthly payment knowing your funeral costs are covered.
b. The best burial insurance plan for you may not be the best plan for someone else. Every medical condition will bring a different underwriting process when applying for coverage.
c. Work with a licensed independent agent with access to the top final expense insurance companies in Texas.
I’m the owner and founder of Willamette Life Insurance. Willamette Life specializes in Final Expense Insurance. We compare prices with different insurance carriers while finding the perfect match for your health and budget. This company was started to help educate the public on why Final Expense Insurance could be a great option for them and their family. We strive to be friendly, informative, and always have the client’s best interest as our top priority. Everything in this article is my own professional opinion and experiences I have had during my time in helping clients.