Funeral insurance benefits for final expenses.
Funeral insurance benefits for final expenses.

Funeral insurance is similar to life insurance in the sense that it goes to your loved ones at your death. However, the amount of death benefits is generally smaller than a typical life insurance policy because it is designed to pay for funeral expenses only.

It is permanent coverage because it will remain in force as long as you pay your premiums regularly. Unlike term life insurance, it does not expire and has no end date.

The cost of the premiums for funeral insurance can also be cheaper than life insurance, depending on the amount of coverage and your age at the time of the application.  It is not intended to pay for income replacement, mortgages, or living expenses of dependents.

In short, it is focused on one thing only – making sure that final expenses are taken care of, removing the burden from your family.

You must still have questions on your mind so we invite you to keep reading to know more about funeral insurance. 

To get an idea about the cost, fill out our online form, free of charge, and receive no-obligation quotes from our partner insurers.

Reasons to buy funeral insurance

When you take out a funeral insurance policy, also called final expense insurance, you save your family from the burden of spending on your end-of-life expenses.

A funeral in Canada, depending on the type of service and other accompaniments, can also be costly. The average price of a funeral service in a funeral home is around $10,000, but simpler services such as cremation can cost much less.

Nevertheless, the shock of your loss and the sudden expenses can be a difficult burden for your loved ones to carry. Thus, putting aside a funeral insurance policy will be a tremendous help for them.

Funeral insurance can be used by your beneficiary to cover funeral home expenses.

The only disadvantage is that funeral insurance is purchased when the insured is above 55 or even 60 years old. In such cases, the premiums can be more expensive.

In line with this, it is highly advisable to buy funeral insurance as early as possible to reduce the cost of premiums. Keep in mind that the price of premiums stays the same for as long as you live.

To give you a better idea, below is an example:

Funeral Insurance premium: $60/$720 per year

Amount of Coverage: $10,000

If you are alive for 18 more years after you purchased the policy, you would pay more than the amount of the policy. 

In some cases, funeral insurance should be a last resort. If you can qualify for term life insurance, it is usually a better and cheaper option.

Who should buy funeral insurance?

If you need insurance to cover funeral expenses and other financial obligations, it is always a good idea to try term life insurance. If you qualify you can save money and even provide a bigger cash benefit to your beneficiaries.

We always recommend to buy funeral insurance only if you cannot get traditional life insurance. Funeral insurance does not require a medical exam. Thus, it offers a limited amount of cash benefits and comes with higher premiums.  

Funeral insurance is an option under the following circumstances;

  • You have been denied traditional life insurance products by insurers due to poor health;
  • You are 70 years old or older;
  • You have good reason to believe that you will pass within a short time.
  • You have life insurance but it is not adequate and you cannot get more.

Are you uncertain about what insurance coverage to buy for your needs? You can speak to our experienced insurance brokers or compare free offers with no obligation. Just fill out the short online form on this page.

Compare Funeral Insurance with Term Life Insurance

We would like to give you a breakdown of the different features of funeral insurance and life insurance so you can make the best choice.

 Funeral InsuranceLife Insurance
Maximum Coverage Amount$50,000$5 Million
TermLifetimeYou can choose lifetime coverage or specified duration (5 years, 10 years, 20 years)
Medical CheckNot requiredRequired
Can be used to pay funeral costsYes Yes and more
PriceVaries depending on various factors but is more expensive than life insuranceVaries depending on various factors but is cheaper than funeral insurance


Funeral insurance pays for specific final expenses such as funeral expenses and final arrangements.  It can be used to pay for burial or cremation, services, and the like.

Life insurance provides a wider array of insurance solutions for financial protection for your family or loved ones. It can be used to pay the mortgage, debts, living expenses of your dependents, and your final expenses.

In short, funeral insurance is designed to ease the financial burden on your family for your funeral only but life insurance can protect the financial needs of your loved ones in more ways than one.

What can funeral insurance pay for?

Funeral insurance coverage for funeral expenses.

The biggest advantage of funeral insurance is its simplicity.  It is designed to pay for end-of-life expenses only. For this reason, the amount of benefits is small, usually from $5,000 to $25,000 although it is possible to obtain up to $50,000.

Again, most funeral insurance policies are limited in amount because a higher amount of benefits will be very expensive in the long run.

  • Some of the expenses that are usually covered by funeral insurance include:
  • Casket
  • Funeral services
  • Graveside services
  • Flowers
  • Embalming or cremation
  • Burial
  • Transportation fees

Getting a funeral insurance policy to cover funeral expenses will give you peace of mind because funds for your final expenses are set aside.

The pros and cons of Funeral Insurance

Funeral insurance can be ideal for certain people based on their circumstances. We have already mentioned it in a previous section.

Final expense insurance or funeral insurance offers an easy application process as most insurers offer no-medical exam insurance. So for individuals who fear rejection because of medical conditions, final expense insurance is the ideal solution.

While some insurers offer instant coverage, most insurance companies require a waiting period of 2 years. This means that if you pass during the waiting period, your beneficiaries will not receive death benefits. However, they will get a refund of the premiums already paid for.

We already mentioned that premiums for funeral insurance are more expensive compared to the same amount of life insurance. This is because the insurer does not have your health information so you are charged more due to the higher risk.

Lastly, funeral insurance has a maximum coverage of $50,000. Most people don’t get this maximum amount because the premiums would be exorbitant.

How can life insurance benefit your loved ones?

Life insurance benefits for your loved ones.

Life insurance companies have different types of policies with a maximum death benefit of up to $5 Million.

The death benefits your loved ones can receive can help them significantly to cope with your loss.  Aside from funeral expenses, your life insurance benefits can be used for things such as:

  • Pay for the mortgage;
  • Pay medical bills;
  • Pay credit card and other debts;
  • Cover childcare expenses;
  • Cover tuition expenses;
  • Cover living expenses;
  • Replace your income.

There are various types of life insurance to consider based on your needs and goals. Some examples of life insurance products are;

  • Life insurance with critical illness;
  • Whole life or permanent life insurance;
  • Term life insurance;
  • Term life 100;
  • Universal life insurance.

Each type of coverage offers unique features and are priced differently. You can explore your options for life insurance by referring to
our guide on the best life insurance.

Types of Funeral Insurance to choose from

Simplified issue life insurance

‍This type of policy waives the medical exam. You will, however, answer a health questionnaire to become eligible.  You can get denied if you have pre-existing conditions.

Simplified issue life insurance is the cheaper funeral insurance. It can be an ideal solution for someone who can afford to pay higher insurance premiums to skip a medical exam or someone already refused traditional insurance by an insurance company.

Guaranteed issue life insurance

This type of funeral insurance is the easiest type to obtain because it is designed to give immediate approval. It is the ideal solution for individuals who are difficult to insure or don’t qualify for other types of insurance.

You won’t be required to undergo a medical check or answer a health questionnaire. It is, however, the most expensive type of insurance.

Individuals who can benefit from guaranteed issue life insurance are:

  • Those with critical or terminal illnesses
  • Individuals previously declined by insurers for most other types of insurance due to complicated medical histories.

The cost of funeral insurance

Calculating insurance premiums is not an exact science because so many factors influence the final price.

Studies show that the average cost of funeral insurance is around $55 for women and $72 for men, for individuals aged 40-45 for coverage of $25,000.

On the other hand, term life insurance for $100,000 for a male or female (non-smoking) aged 40 can cost:

  • $18.10 for a woman
  • $21.25 for a man

As you can see, funeral insurance is 3 times more expensive than term life insurance for a significantly lower amount of coverage.

Steps to get funeral insurance coverage

Speak to our insurance partners for funeral insurance needs.

Have you already tried to apply for term life or whole life insurance? Doing so will get you lower premiums and higher benefit amounts.

If you have done this and been declined coverage, your next step is to apply for funeral insurance. You can lower your premiums by applying for simplified issue life insurance.

As a last resort, if you are not approved for simplified issue life insurance, you can obtain guaranteed life insurance. As premiums are expensive, you can limit the benefit amount to what you need for your funeral only. Most policies are from $10,000 to $20,000. At least, your loved ones will not be burdened by funeral costs.

Fill out the form on this page to request FREE and NO-OBLIGATION funeral insurance quotes from our reliable insurance partners.

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