Have you ever wondered how you can ease the financial burden on your loved ones after you’re gone? Cremation insurance offers an affordable way to cover the costs of cremation and related funeral expenses, ensuring that your family won’t have to worry about unexpected bills during an emotionally difficult time. With cremation costs rising, planning with cremation insurance can give you and your family peace of mind knowing that everything is taken care of.
What Is Cremation Insurance?
Cremation insurance, also known as a cremation policy or prepaid cremation policy, is a type of insurance policy designed to cover the costs associated with cremation. It is typically offered by funeral homes or cremation providers and can be purchased in advance to ensure that your loved ones are not burdened with cremation costs after your passing.
Cremation insurance policies can vary in coverage and cost but generally cover the expenses associated with the cremation process, including transportation, cremation fees, and the urn or container for your remains. Some policies may also cover additional costs, such as memorial services or burial plots.
What Does Cremation Insurance for Seniors Cover?
Cremation insurance provides a quick cash payout to your loved ones to cover all your cremation and other final costs (the money can be spent on anything), such as:
- Crematory fees
- Urn
- Cremation casket
- Funeral home fees
- Medical bills
- Financial debts
Also, remember that any leftover money does not go to the funeral home or crematory. Your beneficiaries keep all excess funds.
What does cremation insurance cover?
Cremation insurance is a type of life insurance policy specifically designed to cover the costs of cremation services and related funeral expenses. This insurance provides financial assistance to the policyholder’s beneficiaries, ensuring that the costs of cremation, a memorial service, and any other final expenses are covered without burdening the family financially.
Do you need a cremation insurance policy? What other options are available for paying for cremation services? Here’s everything you need to know about final expense insurance.
Does Medicare Cover Cremation?
Regardless of the type of Medicare plan, Medicare does not consider funeral or medical expenses. Therefore, you can’t use Medicare money directly for your loved one’s cremation. If your loved one had a Medical Savings Account plan and named you as their beneficiary, you may receive the leftover money from the plan, depending on when the funds were deposited. You can then use this money for whatever you wish, including cremation services.
How Much Do Cremation Final Expense Policies Cost?
A cremation final expense insurance policy will usually cost between $25-$75 monthly, depending on your gender, age, health, tobacco history, and the amount of insurance coverage you want.
That said, below are some sample cremation insurance rates (monthly premiums) for various ages.
| Age | $2,000 | $3,000 | $4,000 | $5,000 | $10,000 | |
| 45 | F: $7.08 M: $7.99 | F: $9.02 M: $10.38 | F: $10.96 M: $12.77 | F: $12.91 M: $15.16 | F: $22.61 M: $27.11 | |
| 50 | F: $7.42 M: $8.70 | F: $9.53 M: $11.45 | F: $11.64 M: $14.19 | F: $13.75 M: $16.94 | F: $24.31 M: $30.68 | |
| 55 | F: $8.10 M: $9.75 | F: $10.55 M: $13.03 | F: $13.00 M: $16.30 | F: $15.45 M: $19.58 | F: $27.71 M: $35.95 | |
| 60 | F: $9.14 M: $11.32 | F: $12.10 M: $15.37 | F: $15.07 M: $19.43 | F: $18.04 M: $23.48 | F: $32.87 M: $43.76 | |
| 65 | F: $10.77 M: $13.86 | F: $14.55 M: $19.19 | F: $18.33 M: $24.51 | F: $22.11 M: $29.84 | F: $41.01 M: $56.48 | |
| 70 | F: $13.21 M: $17.48 | F: $18.21 M: $24.63 | F: $23.22 M: $31.77 | F: $28.22 M: $38.91 | F: $53.24 M: $74.61 | |
| 75 | F: $17.05 M: $22.56 | F: $23.97 M: $32.23 | F: $30.89 M: $41.91 | F: $37.81 M: $51.59 | F: $72.41 M: $99.97 | |
| 80 | F: $22.25 M: $30.51 | F: $31.77 M: $44.16 | F: $41.30 M: $57.81 | F: $50.82 M: $71.47 | F: $98.43 M: $139.73 | |
| 85 | F: $29.74 M: $41.11 | F: $43.01 M: $60.06 | F: $56.28 M: $79.02 | F: $69.55 M: $97.97 | F: $135.90 M: $192.74 | |
| 86 | F: $37.06 M: $50.05 | F: $53.85 M: $73.32 | F: $70.63 M: $96.60 | F: $87.41 M: $119.87 | F: $171.32 M: $236.25 | |
| 87 | F: $43.99 M: $58.13 | F: $64.24 M: $85.45 | F: $84.49 M: $112.77 | F: $104.74 M: $140.09 | F: $205.97 M: $276.67 | |
| 88 | F: $50.92 M: $66.22 | F: $74.64 M: $97.58 | F: $98.35 M: $128.94 | F: $122.06 M: $160.30 | F: $240.62 M: $317.10 | |
| 89 | F: $57.85 M: $74.30 | F: $85.03 M: $109.71 | F: $112.21 M: $145.11 | F: $139.39 M: $180.51 | F: $275.27 M: $357.52 | |
Does burial cover cremation?
The average cost of cremation services in the U.S. is around $3,000-$4,000. While cremation services are cheaper than funeral services, many people still rely on burial insurance to cover the cost of cremation expenses.
Direct Cremation:
The least expensive option when it comes to cremation services is direct cremation. This service involves the body being cremated soon after death. With direct cremation, there is no viewing, which means there are no embalming or casket fees. You also don’t need to pay for a headstone or burial plot. However, you will need to pay for the direct cremation service itself.
Cremation With Funeral Service:
Some people prefer cremation while still having a traditional funeral service. A funeral service can be arranged before or after someone has been cremated. With that said, you can expect to incur expenses associated with cremation as well as some funeral expenses, such as a basic service fee and some cash advances.
Other Expenses
Other expenses can be incurred after someone has passed that burial insurance can cover. Many loved ones are left with certain debts after they pass away that will need to be settled. This includes:
- Medical Bills
- Mortgage Loans
- Credit card bills
Many of these debts can be settled through the estate. But, if there aren’t many assets included in the estate, any leftover funds from the burial insurance policy can be used to pay off these debts.
How to arrange for a cremation?
When arranging a cremation for a loved one or pre-planning your cremation, you can seek relevant information and details from a local funeral home or cremation provider. It is also possible to pay for a funeral and cremation in advance.
Consulting with a professionally licensed funeral director can help you comply with the legal, procedural, and local requirements that you may not be aware of. Moreover, the funeral provider may suggest better alternatives for the procedures you want to follow.
Steps for Arranging a Cremation
- Contact some funeral homes, go through their general price lists stating the prices of all the items that they offer to compare prices, and then select the one that suits your needs.
- Take the social security number and other details about the deceased to the funeral home for the funeral arrangement conference where you discuss the funeral and cremation plan.
- Transport the deceased’s body from the site of death or storage to the funeral home. The funeral provider shall also help you secure certified copies of the death certificate, arrange for a notice in the newspapers, and look after other necessary paperwork.
- Obtain a medical certificate from a doctor stating the cause of death or a certificate from the Coroner in case there has been a coroner’s post-mortem examination.
- Sign the authorization form for the cremation of the deceased.
- Get a casket or alternative container for the body in which the cremation has to be performed. If you need a casket for the funeral service but do not want to buy it, consider renting a casket.
- Select a cremation urn to store the ashes.
- You may ask the funeral home for a witnessing service so that you can witness cremation. Some crematoriums, however, do not allow it.
- Perform the cremation, then dispose of the cremated remains by burying them in a burial plot, placing them in a columbarium, or entombing them in a mausoleum. Besides, you may opt to scatter the ashes in a scattering garden, national park (if the local laws allow it), private property (with the owner’s consent), etc. The cremated remains can also be floated in water or scattered by plane.
Benefits of Cremation Insurance
Preplanning cremation offers many benefits, including addressing the financial side of funeral planning. Consider matching end-of-life planning with a cremation insurance policy to address the financial element. Planning offers many benefits — both for yourself and your loved ones.
- Remove the financial burden at the time of death
- Control cremation costs
- Spare your family difficult decisions
- Gain peace of mind
- Manage end-of-life planning with low monthly payments
Conclusion:
Is cremation insurance the right choice for you? By securing this type of insurance, you take an important step toward protecting your loved ones from financial stress when they need it most. With various plans available, you can find the right coverage to suit your needs, allowing you to leave behind a legacy of care and thoughtful planning.
FAQs
Several government organizations can help with final disposition and funeral costs including Social Security, State Department of Health, and even FEMA if the deceased died in a natural disaster.
If you cannot afford a burial or cremation, you can sign a form with the county coroner’s office, and the state will bury or cremate the body for you. This will be at no cost, but you won’t have any say in where or how.
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