How Much Does a Funeral Insurance Policy Typically Cost?

No one likes to think about death. But planning for it? That’s a final act of love.

Funeral insurance—also called burial insurance or final expense insurance—is a small but mighty safety net. It’s designed to cover the cost of a funeral, burial, cremation, or even lingering medical bills so that your loved ones aren’t left scrambling during one of the most emotional moments of their lives.

And here’s the kicker: many people think funeral insurance is expensive, complicated, or only for seniors. Not true.

Whether you’re in your 30s with young kids, in your 50s planning for retirement, or a single adult who simply doesn’t want to leave a burden behind, understanding the true cost of funeral insurance is something that matters—for all of us.

In this guide, we’ll break it all down:

• The average monthly cost of funeral insurance

• What really influences how much you pay

• Real national averages you can use to plan ahead

What Is Funeral Insurance and What Does It Cover?

Funeral insurance is a small, straightforward life insurance policy that pays out a lump sum to your chosen beneficiary when you die. Its purpose? To cover the inevitable: your funeral, burial or cremation, and any last-minute expenses that pop up when someone passes.

Coverage amounts typically range from $5,000 to $25,000.

Here’s what a funeral insurance payout usually covers:

• Funeral and memorial services – the ceremony, flowers, music, and viewing

• Burial or cremation expenses – casket, urn, and service provider fees

• Final bills – lingering medical costs, credit cards, or other unpaid debts

• Probate and legal costs – paperwork and administrative odds and ends

It’s a focused product built for one purpose: to take a weight off your family’s shoulders during one of life’s heaviest moments.

Typical Monthly Cost of a Funeral Insurance Policy

On average, you can expect to pay between $30 and $70 per month for a policy that covers typical funeral expenses.

Here’s a basic breakdown:

• $5,000 policy: around $20–$35/month

• $10,000 policy: around $30–$60/month

• $20,000 policy: around $60–$120/month

The more coverage you buy, the more you’ll pay per month—but the increase is usually linear. A $20,000 policy often costs about twice what a $10,000 policy does.

For example, a healthy 50-year-old non-smoker might pay $35–$45/month for $10,000 of coverage. A 60-year-old could expect $50–$65. A 70-year-old? Possibly $75–$100+ for the same benefit.

Two key takeaways:

• The earlier you buy, the lower your monthly cost

• The smaller your coverage amount, the more affordable your premium

How Age Affects Funeral Insurance Costs

Age is the single most important factor in what you’ll pay.

Here’s how costs typically scale:

• 30s–40s: $20–$30/month for a $10,000 policy

• 50s–early 60s: $35–$60/month

• Mid 60s–70s: $60–$100+/month

• 75–80+: $100–$200+/month

Why does age matter so much? The older you are, the sooner the insurer expects to pay out—so your premium rises accordingly.

If you’re thinking about funeral insurance, locking in a policy before age 60 can save you thousands over time.

Other Key Factors That Influence Cost

Besides age, several other variables impact your premium:

Health & Underwriting

There are two main types of plans:

• Simplified issue: You answer a few health questions. Lower rates if approved.

• Guaranteed issue: No questions asked. Everyone qualifies—but premiums are higher and payouts for natural causes are usually delayed for two years.

If you’re in decent health, simplified issue plans almost always offer better value.

Tobacco Use

Smokers typically pay 20–50% more. If you’ve recently quit, shop around—some insurers are more lenient than others.

Gender

Women pay less on average than men, thanks to longer life expectancy.

Location

Where you live doesn’t usually affect your premium, but it can influence how much coverage you need. Funerals are more expensive in places like New York or California, and less so in the Midwest or South.

Your Family & Financial Situation

If you already have life insurance, a smaller funeral policy may be all you need. If not, you may want to purchase a larger amount to give your family extra room to handle final expenses and paperwork.

National Averages: What People Actually Pay

Let’s take a look at the national picture:

• $10,000 policy: typically $40–$70/month

• $15,000 policy: around $60–$90/month

• $20,000 policy: about $90–$140/month

According to Forbes, the average $20,000 funeral policy costs about $140 per month.

That’s right in line with the National Funeral Directors Association report showing that:

• A full-service burial averages $8,300

• A cremation with service averages $6,280

That’s why most people land on $10,000–$15,000 in coverage—it’s enough to take care of the essentials, with a little breathing room.

Tips for Getting the Best Funeral Insurance Rates

Here’s how to make the smartest decision:

• Start early. The younger you are, the cheaper it is—for life.

• Use your health. If you can answer basic health questions, choose simplified issue.

• Compare policies. Different insurers offer different rates and underwriting rules.

• Don’t overbuy. A $10K–$15K policy is enough for most families.

• Know the waiting periods. Guaranteed issue policies often have a 2-year delay for natural death benefits.

The more informed you are, the more value you’ll get for your money.

Conclusion

Funeral insurance isn’t just about cost. It’s about peace.

For the price of a few streaming subscriptions, you can protect your loved ones from a financial burden during one of the hardest moments of their lives.

Whether you’re young and proactive, in your middle years planning ahead, or retired and looking to tie up loose ends, knowing what funeral insurance costs—and why—gives you the power to make the right call.

It’s affordable.

It’s simple.

And it might just be the kindest decision you make for the people you love.

If you’re thinking about funeral insurance and want help finding the right coverage, we’re here for you.

Have a question? Need a quote? Just fill out the contact form below—or call us directly. We’ll walk you through it with zero pressure and real answers you can trust.

👉 Because peace of mind should never be complicated.

Frequently Asked Questions (FAQ)

1. What is the average monthly cost of funeral insurance?

Most people pay between $30 and $70 per month for a funeral insurance policy, depending on their age, health, and the amount of coverage they choose. A $10,000 policy is the most common and typically falls within this range.

2. Is funeral insurance only for seniors?

No. While it’s often marketed to older adults, anyone age 30 and up can benefit from having funeral insurance—especially if they want to protect their loved ones from unexpected end-of-life expenses. Buying earlier also helps lock in lower lifetime premiums.

3. What does funeral insurance cover exactly?

It usually covers funeral and memorial services, burial or cremation costs, casket or urn expenses, final medical bills, and sometimes even probate and legal paperwork.

4. How does funeral insurance differ from regular life insurance?

Funeral insurance is typically a smaller policy (usually $5,000–$25,000) that’s focused solely on end-of-life costs. Traditional life insurance provides larger payouts for income replacement, debts, or legacy planning.

5. Can I get funeral insurance with no medical exam?

Yes. Most policies are “no exam” and come in two types: simplified issue (a short health questionnaire) and guaranteed issue (no questions asked). If you’re in good health, simplified issue policies usually offer better rates and immediate full coverage.