What is the average monthly cost for burial insurance?

📊 Average Monthly Cost

The average monthly cost for burial insurance (final expense insurance) ranges from $20 to $100 per month for a $10,000 policy, depending heavily on your age, gender, and coverage amount.

💡 Monthly Cost Breakdown by Age and Gender

For a standard $10,000 whole life policy, estimated average monthly premiums look like this:

• 👤 Age 50–60
  • Men: $30 – $55 per month
  • Women: $25 – $45 per month
• 👤 Age 61–70
  • Men: $55 – $90 per month
  • Women: $45 – $75 per month
• 👤 Age 71–80+
  • Men: $95 – $200+ per month
  • Women: $80 – $160+ per month

⚠️ Important Cost Factors

• Coverage Amount: Policies generally range from $5,000 to $25,000; higher payouts scale your monthly premium proportionally.
• Health & Underwriting: Simplified issue (health questions only) is cheaper; guaranteed issue (no health questions) costs significantly more and includes a 2-year waiting period.
• TV Teaser Rates: Advertised rates like "$9.95/month" usually cover only a tiny $1,000 benefit for younger seniors and do not reflect real funeral expenses (which average $7,000–$10,000+).

A $10,000 burial policy costs between $24 and $100 per month on average for most seniors. Because burial insurance is typically a permanent whole life policy, the premiums lock in for life and never increase, provided you continue making payments.

Your exact monthly price is determined primarily by your age, gender, and health status.

Average Monthly Costs for a $10,000 Policy

Women generally pay less than men because they have a longer life expectancy. Rates also spike if you use tobacco or require a "guaranteed acceptance" policy (which asks no health questions but has a mandatory two-year waiting period).

The baseline monthly estimates for healthy non-smokers across different age groups include:

Why $10,000?

A $10,000 benefit amount is the most common benchmark for final expense planning. According to the National Funeral Directors Association (NFDA), it matches or slightly exceeds the average cost of a standard funeral with viewing and burial ($8,300 to $9,995 depending on if a vault is included). If your family opts for cremation, a $10,000 policy leaves a comfortable cushion to cover remaining medical bills or minor debts.

Where to Shop

The most competitive rates are usually found through independent brokers who can shop multiple carriers at once. Highly rated providers who offer these plans include Mutual of Omaha, Aflac, and Gerber Life.

Burial insurance is worth the money if you lack personal savings or traditional life insurance to cover funeral costs, but it is often a poor investment if you already have adequate funds or standard coverage.

When Burial Insurance Is Worth It

• No existing savings: You do not have $8,000 to $10,000 saved for average final expenses.
• Hard to qualify: Poor health prevents you from getting traditional, lower-cost life insurance.
• Fixed income: You are a senior on a strict budget who needs locked-in, permanent monthly rates.
• Ease of approval: You want coverage without undergoing a medical exam.

When Burial Insurance Is Not Worth It

• You have savings: You already have an emergency fund or dedicated savings account large enough to pay for your funeral.
• Existing life insurance: You have an active term or whole life policy that will already provide enough cash for your final expenses.
• High long-term cost: You end up paying more in total premiums over the years than the actual payout your beneficiaries will receive.

Better Alternatives to Consider

• Prepaid burial plans: You pay a funeral home directly in advance to lock in today's service prices.
• Standard savings or POD account: You set aside cash in a personal savings or Payable-on-Death bank account without paying insurance company markups.
• Traditional term or whole life policy: You buy a regular policy if you are healthy enough to qualify for larger payouts at a lower relative cost.

You can read more details about policy options and trade-offs through the NerdWallet Guide to Burial Insurance.

The Social Security Administration (SSA) pays a one-time lump-sum death benefit of exactly $255.

This figure is heavily capped and does not cover the full cost of a modern funeral or cremation. The benefit is paid directly to an eligible family member—not to a funeral home—and it hasn’t changed since 1954.

Who Qualifies for the $255 Payment?

The money cannot be claimed by just anyone or automatically used by a funeral director. It is strictly paid in the following priority order:

• Surviving Spouse: A widow or widower who was living in the same household as the deceased at the time of death. If they lived apart, they may still qualify if they were already receiving benefits on the deceased's record.
• Eligible Children: If there is no surviving spouse, the money can go to a child who is eligible to receive monthly benefits on the deceased parent’s record during the month they passed away (such as children under 18, high school students under 19, or disabled adult children).

Note: If there is no surviving spouse or eligible dependent child, the SSA will not pay the $255 to anyone else (like extended family or friends).

Ongoing Monthly Survivor Benefits

While the one-time $255 death benefit is small, the SSA offers far more substantial financial help through monthly survivor benefits. If the deceased worked long enough under Social Security, certain family members (including widows/widowers age 60+, or parents caring for dependent children) may qualify for ongoing monthly checks to help replace lost household income.

How to Apply

To apply for the benefit, you must submit an application within two years of the date of death.

• By Phone: Call the SSA toll-free at 1-800-772-1213.
• In Person: Visit your local Social Security office.
• Funeral Home Notification: Most funeral directors will request the deceased's Social Security number to officially report the death to the government, but you must still actively apply to receive the $255 payment.

Alternate Funeral Assistance Options

Because $255 is rarely enough to bridge the financial gap, you may want to look into other sources of support:

• VA Burial Benefits: Veterans may qualify for significantly higher burial and plot allowances through the U.S. Department of Veterans Affairs.
• State Medicaid: Depending on where you live, local Medicaid programs sometimes provide dynamic financial aid for the burial or cremation expenses of low-income individuals.

Dave Ramsey and his team generally advise against buying burial insurance (or final expense insurance) because it is a costly form of permanent whole life coverage that offers a poor financial return per dollar.

Ramsey's Main Views on Burial Insurance

• High Cost: While monthly payments look small, the cost per dollar of coverage is much higher than standard options.
• Use Savings Instead: Ramsey teaches that end-of-life costs should be paid using your own emergency fund or personal savings rather than buying a specialized policy.
• Rare Exceptions: His endorsed insurance provider, Zander Insurance, notes that in rare cases where an older individual has completely zero savings and no other choices, a basic burial policy might be considered, though Ramsey himself strongly prefers building up cash instead.

Pre-Paid Funerals vs. Insurance

Ramsey strongly separates planning a funeral from pre-paying or pre-funding it:

• Plan, Don't Prepay: He calls pre-planning a final service a "gift to your family," but says pre-paying a funeral home is a "gift to the funeral home".
• Opportunity Cost: Giving a lump sum to a funeral home ties up your money with very low growth, whereas investing that same money allows it to compound.