Funeral insurance for funds to pay for end-of-life expenses.
23 February 2021,
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Funeral insurance for funds to pay for end-of-life expenses.

Final expense insurance, also known as funeral insurance, is becoming popular in Canada due to the spiraling cost of funerals and burials.

The average cost of a funeral in Canada can be anywhere from $7,000 to $15,000, depending on factors like location, choice of funeral home, and services. For a high-end funeral, it can go as much as $20,000.

For this reason, many Canadians want to make sure that when they pass, they won’t leave a financial burden on their loved ones.

Final expense insurance can ensure that funds for end-of-life expenses is available so your family will have nothing to worry about.

Unlike traditional life insurance which usually focuses on replacing income, final expense insurance is designed to pay for final expenses.

Find out more about final expense insurance and how it can benefit you and your family. You can also get FREE and NO COMMITMENT quotes using our short online form!

Why you need final expense insurance

Plan for inevitable expenses with final expense insurance.

Today, Canadians choose between a funeral or cremation. These two are vastly different, specially when it comes to price.

While a funeral can cost from $7,000 to $15,000, a cremation is much lower in price, from $2,500 to $5,000.

Making arrangements for final expenses can really take the pressure off your loved ones. You can even let them know in advance what arrangements you prefer so they can just mourn without worrying about what to do.

But not everyone wants to plan their funeral. If you are not up to going over details, you can simply make sure that the money is available so they won’t have a financial burden.

This is where funeral insurance can help.

Final expense insurance (also referred to as funeral insurance or burial insurance) is a type of life insurance policy that aims to cover the costs related to funerals or burials and its related expenses. With a final expense insurance policy, you won’t be leaving behind a bill for your family to pay.

This type of insurance mostly appeals to seniors because they are easier to apply for. They also fill the gap in life insurance, specially if you feel your life insurance will not be enough for your loved ones.

Because they are designed to pay for final expenses, the insured amount is much lower than traditional life insurance. Hence, the premiums can be more affordable.

The cash benefit can also be used by the beneficiary to settle credit card bills, medical bills, loans, etc.

Types of Final Expense Insurance

Get-life-insurance-coverage-with-final-expense-insurance

Final expense insurance is not as difficult to obtain as traditional life insurance. They generally fall under 2 categories: guaranteed issue life insurance and simplified issue life insurance.

How are these two different?

Guaranteed issue life insurance is a type of life insurance policy that does not need a medical exam or questionnaire. This means most people can get it by simply filling out paperwork. It is perfect for persons who want some life insurance coverage but cannot qualify for regular whole or term life insurance policies due to medical issues or age.

This life insurance can also be purchased by people who have been denied traditional insurance previously.

Because they don’t ask for a medical exam, many seniors prefer to get guaranteed life insurance as a final expense insurance policy but the premiums are rather expensive. The death benefits are usually set lower because the premiums are high.

Simplified issue life insurance is a life insurance policy that is approved with a minimum of health questions. It is designed to help individuals to get life insurance fast and is ideal for those who don’t want to undertake a medical check.

Rather than wait for weeks to get approved, this type of policy uses minimal risk assessment and can provide coverage within days.

For final expense insurance, the death benefit is typically from $5,000 to $25,000 with premiums higher than regular term life insurance. Because there is no medical check, the risk is higher for insurers.

When you need final expense insurance without a medical exam or a waiting period, simplified life insurance can be your best choice.

Burial vs. cremation: How much do you need?

Choices-for-funeral-arrangements-affect-the-price-of-a-funeral

With tougher economic conditions facing us, expenditures related to dying has become an important issue for families. It is advisable to consider this as an integral part of financial planning.

Based on data from the Cremation Association of North America, the rate of cremation in Canada has increased to 72% in 2018.  Many Canadians may be gearing towards cremation rather than traditional burials due to the lower cost.

But don’t be misled into thinking that because cremation costs less that it will be cheap.

Yet many families still want to continue with tradition and keeping memories alive with traditional burials.

You will need to consider your choices when determining the amount of final expense insurance that you will need.

Cost of cremation vs. traditional burial

Cremation vs. traditional burial in Canada.

Establishing the average price for a burial is a complex task because there are so many factors that affect the cost – vault, cemetery plot, grave marker, casket and casket liner, services, vehicles, viewing. The list can be a long one.

In Canada, traditional burials can start anywhere from $5,000 to as much as $20,000.

For cremation, it can cost about a third of the cost of a burial.  A direct and simple cremation can start from $600 but with services like viewing, flowers, obituary, etc., it can also go up to about $5,000. It also depends on the area, with costs in Vancouver double the cost in Quebec.

The cost can vary from one province to another. Below we present a summary of the costs per province.

The average cost of Funeral Per Province

You will find below a quick guide on the average cost of funerals per province. As you can see, prices can vary significantly.

You also need to remember that personal preferences also have a big impact on the final price.

ProvinceAverage Cost
 Alberta$6,000 – $12,000 
Ontario$5,000 – $20,000 
 Quebec$8,000 – $10,000
British Columbia $5,000 – $15,000
Manitoba$7,000 – $10,000
Saskatchewan$9,000 – $10,000 
New Brunswick$8,000 – $10,000
Newfoundland and Labrador$10,000 – $12,000 

 

Breakdown of the costs of a typical funeral:

 
Death certificate$15-$22 
Body transportat least $100
Casket
Urn
From $2,500 up
From $200 up
Dressing the body$150 – $600
Funeral, visitation, memorial$2,000 up
Plot or nicheat least $1,000
Burial vaultfrom $1,000 up
Cremation or burial$500 up

 If cremation is selected, the cost includes transfer and identification, proper authorizations, container or casket, and the cost of the cremation. For a direct cremation without a service, it can cost as low as $2,000.

The cost for a cemetery or memorial park also varies widely depending on the length of arrangements made and the type of property chosen. These costs are additional to any cremation or funeral expenses.

As you can see, the cost of dying is not a cheap one. For this reason, it is smart to prepare and plan in advance with final expense insurance.

You can already compare and choose the right plan by using our short online form, free of charge!

Benefits of Final Expense Insurance

: Thoughtful and responsible planning with final expense insurance.

While nobody enjoys planning a memorial service ahead of time, it can be the best gift to give to your family. It ensures that final wishes are followed and saves family members from additional stress at an already difficult time.

Final expense insurance offers the following significant benefits:

1. Tax-free death benefits are given to a designated beneficiary. Money can be used to pay for end-of-life expenses or as the beneficiary deems proper.
2. Provides funds to pay for funeral expenses that are increasing in price year by year.
3. The average price of final expense insurance can be as little as $1 a day.
4. No medical life insurance for final expenses are available for the hard-to-insure.
5. Final expense insurance takes away the financial burden of paying for a funeral from your loved ones.
6. Compared to funeral plans, life insurance is not connected with a particular funeral home and gives more flexibility.

Consider final expense insurance as a thoughtful gift to leave to your loved ones.

Don’t waste any more time! Get coverage today and lock-in the rate for burial or funeral insurance.

The cost of Final Expense Insurance

Compared to other life insurance products, final expense insurance is affordable since the insurance benefit is only meant for final expenses or funeral expenses.
 
But just like all other life insurance products, the premiums are calculated based on:
 
• Age
• Gender
• Smoker or non-smoker
• Simplified issue or Guaranteed issue
• Amount insured
 
Below are some sample quotes for final expense insurance:
 

Female, 55 years old, non-smoker
$10,000 coverage

$28.40 monthly (Simplified)
$35.84 monthly (Guaranteed)

Male, 55 years old, non-smoker
$10,000 coverage

$35.09 monthly (Simplified)
$46.00 monthly (Guaranteed


Female, 60 years old, non-smoker
$10,000 coverage

$32.87 monthly (Simplified)
$45.14 monthly (Guaranteed)

Male, 60 years old, non-smoker
$10,000 coverage

$42.76 monthly (Simplified)
$56.55 monthly (Guaranteed)

Female, 70 years old, non-smoker
$10,000 coverage

$53.24 monthly (Simplified)
$68.95 monthly (Guaranteed)


Male, 70 years old, non-smoker
$10,000 coverage

$73.75 monthly (Simplified)
$87.91 monthly (Guaranteed)


** for illustration purposes only

The above prices are not actual quotes but are presented to give you an idea of what the price for final expense insurance could be. Prices may also vary from one insurer to another and based on your location and other criteria.

How insurers calculate final expense insurance premiums

Understand how insurers calculate final expense insurance premiums.

The question of how much final expense insurance costs cannot be answered easily because it depends of many variables.

However, you can understand how insurers determine the rate of your premiums. As this is a life insurance product, variables for each person will vary and your premium will be different from someone else’s.

Gender

Gender plays a very important role in determining the cost of life insurance. The truth is that men generally pay more than women.

Why do insurers practice this gender policy? Simply put, women tend to live longer than men. 

Age

It should be obvious, but it needs to be known that carriers will charge a higher amount the older you get. The cost of funeral insurance will increase every time you have a birthday.

For example, if you applied for coverage at 55 rather than 50, your final expense quotes would be higher because you are older.

Smoking Status

Without a doubt, smokers (male or female) pay higher premiums than non-smokers.

Health Questions or Exam

Guaranteed issue policies, no exam or health questions, are the most expensive policies. Obviously, you will be put at the highest-risk bracket and your premiums will be high.

Simplified issue policies pay lower premiums, subject to approval. There could be a waiting period of two or more weeks.

If you are younger and able to qualify for term life insurance, you may get very low premiums for the same amount of coverage. You will be required to take a medical exam.

Amount of Coverage

After the above factors have been taken into consideration, the rate will be multiplied by the amount of coverage you desire. Of course, the higher the insured amount, the higher the premium.

The best way to know the cost of your final expense insurance premiums is to get FREE and NO COMMITMENT quotes from our partner insurers!

Just fill out the form on this page; it only takes 2 minutes or less!

How does final expense insurance work?

When you have determined the amount of life insurance coverage you need for final expenses, you can simply ask for a free and no-obligation quote using our short online form.

You can choose a quote that satisfies your criteria and meets your budget. Once your application is approved, you start paying monthly premiums.

Death benefits are paid to your beneficiaries for the insured amount. They can use the cash to cover final expenses such as burial or funeral. Your thoughtful gesture ensures they have no financial burden to worry about.

Keep in mind that life insurance is tax-free. If you have another life insurance policy for your legacy, a final expense insurance policy will make sure that you leave the desired legacy to your heirs.

Frequently asked questions: Final Expense Insurance

Planning your funds for funeral expenses in not a matter that can be taken lightly. You will need to consider your family’s traditions, religious preferences, and personal customs. You will also need to think about your final wishes and how much it will cost.

We understand you may have a few questions in mind so we have taken the initiative to compile these frequently asked questions to guide you.

What are considered final expenses?

Final expenses usually relate to bills left behind after death – medical bills, funeral expenses, burial expenses, and even credit card bills. 

What is the maximum age for final expense insurance?

Each insurance company will have a policy regarding the maximum age to apply for coverage. The general age range of people who get funeral insurance is from 50 years old to 70 years old. A few insurers offer coverage up to age 80.

What is the maximum amount of coverage for final expense insurance?

For most seniors, the average insured amount is $10,000 although insurers offer up to $20,000. If you work with an insurance broker, he can help you find the coverage you need for the lowest possible price.

Who needs final expense insurance?

Final expense insurance is a type of life insurance. Generally, everyone needs it with the exception of those who already have sufficient life insurance coverage or savings that can pay for final expenses. While standard life insurance may be considered unnecessary by individuals without dependents, final expense insurance is useful even for singles because they pay for end-of-life expenses. 

Are pre-conditions allowed for final expense insurance?

Simplified issue policies can grant coverage with pre-conditions. You will need to answer a health questionnaire. With no-medical guaranteed funeral insurance, all pre-conditions are accepted. You will need to qualify for the age limit set by the insurance company.

Can I get final expense insurance if I have been previously declined coverage?

Believe it or not, it is still possible to get final expense insurance with simplified or guaranteed issue life insurance. While the premiums will be higher than standard life insurance, you can get some life insurance coverage for final expenses.

Do premiums for final expense insurance expire?

It depends on the insurance company. Some policies have premiums that expire after age 100, meaning you don’t pay if you live beyond age 100. There are policies that don’t apply this rule. Be sure to check the length of the premiums with the insurance provider.

Does a final expense insurance policy dictate how beneficiaries spend the money?

Although this type of insurance is designed to pay for funeral or burial expenses, beneficiaries have discretionary power as to how the funds are used.

What is the best age to get final expense insurance?

Older adults starting at 55 years old start to think about final expense insurance. However, even seniors aged 65 and older may realize their life insurance or savings are not enough and want to get additional coverage. The earlier you buy final expense insurance, the more affordable the premiums are. The best age to get final expense insurance would be your age now!

Can you buy funeral or burial insurance for parents or grandparents?

Yes, it is possible to buy burial or funeral insurance for a parent or another family member.

Can you get a funeral or final expense insurance if you already have another life insurance policy?

In Canada, it is possible to have several life insurance policies. If you feel you need additional coverage specifically for funeral expenses, seniors can buy another policy for that purpose. In fact, many seniors buy a funeral insurance policy after retirement to augment their life insurance coverage.

Why should I buy final expense insurance from a broker?

Many insurers don’t sell final expense insurance directly but through their agents or brokers. It is advisable to buy final expense insurance from a broker because he or she will not be tied with a specific insurer and can shop around for the best policy and rate for you.

Can funeral insurance be canceled?

If you stop paying your premiums, your policy will automatically be canceled. Keep in mind that should you let your insurance policy terminate, your beneficiaries will not receive the death benefits.

We hope these questions help you in making the best decision regarding your insurance coverage. Always compare multiple quotes to get the best value for your money.

Final expense insurance with reliable insurers

Don’t leave planning for final expenses at the last minute! The longer you wait, the higher the premiums.

Seniors can still get life insurance for final expenses with reliable insurers in our network.

You can get FREE and NO OBLIGATION quotes for final expense insurance that meet your needs and budget.

Just fill out the short online form below and our partner insurers will be glad to send you competitive offers tailored to your budget.

Final expense insurance is an expression of your love and concern

 until the last moment. 

Make sure that your family will be in good hands with the right funeral or burial insurance!

Request for free quotes to save time and money.

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