Cremation is quickly becoming the most common choice for final arrangements in the U.S., and with good reason. It’s simpler, more flexible, and significantly less expensive than a traditional burial. But even cremation isn’t free. Between the cremation itself, an urn, memorial service, and other final details, families can still face $3,000 to $7,000 or more in expenses.
That’s where cremation insurance comes in.
Whether you call it burial insurance, funeral insurance, or final expense coverage, this type of life insurance is designed to help cover the immediate costs that come after death, without leaving your loved ones with a financial burden.
But how much does it actually cost? And how much you’ll pay can vary, a lot, depending on your age, health, and the type of policy you choose.
In this guide, we’ll break down real-world cremation insurance pricing so you know what to expect. We’ll show you how rates change as you get older, how your health affects your options, and what kind of policy makes the most sense based on your needs and budget.
If you’ve been putting off this decision because you weren’t sure what it would cost, or whether it’s worth it, this article is for you.
What Is Cremation Insurance?
Cremation insurance isn’t a special kind of life insurance, it’s simply a final expense or burial insurance policy designed to cover the costs of cremation and related services.
The purpose is straightforward: to make sure your family doesn’t have to pay out of pocket for your cremation when the time comes.
These policies are typically small, anywhere from $5,000 to $25,000, and are meant to cover:
- Direct cremation
- Urn or ashes container
- Memorial service or celebration of life
- Clergy fees, death certificates, or obituary notices
- Related expenses like travel or small final debts
Cremation insurance is a type of whole life insurance, which means:
- The coverage never expires as long as you keep paying
- The premiums are fixed for life
- The death benefit is paid directly to your chosen beneficiary
- Your loved ones can use the funds however they see fit
It’s important to understand that cremation insurance isn’t tied to any one funeral home or crematory. That gives your family more flexibility to make arrangements based on your final wishes, and their needs, when the time comes.
Because it’s designed with seniors in mind, cremation insurance is usually easy to qualify for. Most policies don’t require a medical exam, and many are guaranteed issue, meaning your approval is automatic regardless of your health history.
Whether you’re 55 and planning ahead or 80 and just getting started, cremation insurance can offer peace of mind and protection from unexpected final expenses.
Average Cost of Cremation Insurance by Age
Cremation insurance is generally affordable, but the older you are when you apply, the more you can expect to pay. That’s because life insurance is based on risk, and age is one of the biggest risk factors.
If you’re in your 50s or early 60s, your premiums will be relatively low. But if you wait until your mid-70s or beyond, your monthly cost will go up significantly. That’s why it’s wise to lock in a policy early, while options are open and prices are lower.
Below is a general guide to monthly premiums based on age and whether or not you smoke:
| Age | Coverage | Non-Smoker | Smoker |
| 50 | $10,000 | $25–$35/month | $35–$50/month |
| 60 | $10,000 | $35–$50/month | $50–$70/month |
| 70 | $10,000 | $50–$75/month | $75–$100/month |
| 80 | $10,000 | $90–$130/month | $130–$170/month |
| 85 | $10,000 | $125–$170/month | $170–$220/month |
These are general estimates and will vary depending on your health, state, and insurance provider.
Why Age Matters
Insurance companies know that the older you are, the more likely it is that the policy will need to pay out soon. As a result:
- Each birthday increases your cost, especially after age 70
- Some carriers stop offering coverage after age 85
- Premiums are locked in once you buy, so applying earlier saves money over the long run
The Power of Starting Early
Let’s say you buy a $10,000 cremation policy at:
- Age 60 and pay $40/month → Over 20 years, you’ll pay about $9,600
- Age 75 and pay $80/month → Over 10 years, you’ll pay about $9,600
- Age 80 and pay $120/month → Over 5 years, you’ll pay about $7,200
Even though the monthly payments go up, the total paid can still make sense, especially if your family needs the funds and you don’t have savings set aside.
How Health Impacts Cremation Insurance Cost
While age is the biggest factor in cremation insurance pricing, your health status plays a close second, especially if you’re applying for simplified issue coverage.
Let’s break down how your health affects both your eligibility and your monthly premium.
Simplified Issue Policies: Lower Cost, Health Questions Required
These policies are designed for seniors who are in average to good health. You won’t need a medical exam, but you will answer a few basic health questions on the application.
Questions may include:
- Have you been diagnosed with cancer in the last 2 years?
- Have you had a heart attack, stroke, or congestive heart failure?
- Are you currently in a hospital, nursing home, or hospice?
If you can answer “no” to most of the questions, you’ll likely qualify. These policies tend to offer:
- Lower premiums
- Immediate full coverage (no waiting period)
- More policy choices
For example:
A 72-year-old non-smoker in good health may pay around $60/month for a $10,000 policy.
Guaranteed Issue Policies: Higher Cost, No Health Questions
If you’ve had major health issues, or just want to avoid answering medical questions, guaranteed issue policies are the best option. They’re available to almost anyone up to age 85 or even 89, and approval is guaranteed.
But there are trade-offs:
- Higher monthly premiums
- A two-year waiting period before full payout for natural causes
- Full payout available only after the waiting period (unless death is accidental)
For example:
That same 72-year-old with heart disease might pay $90–$110/month for the same $10,000 guaranteed issue policy.
Chronic Conditions That May Affect Your Eligibility or Rates
- Diabetes (especially with complications)
- COPD or other lung conditions
- Kidney disease
- Cancer (current or recent)
- Alzheimer’s or dementia
- Recent stroke or heart attack
If you have one or more of these, you’ll either pay higher rates for simplified issue, or need to go with guaranteed issue altogether.
Pro Tip: Even if your health isn’t perfect, always try for a simplified issue policy first. If you don’t qualify, you can still fall back on guaranteed issue, just make sure you understand the waiting period.
Cost by Coverage Amount
One of the best things about cremation insurance is that you don’t have to over-insure. You’re not trying to replace income or cover a mortgage, you’re trying to make sure your final expenses are covered. That means you can choose exactly how much coverage you need based on your cremation plans and your budget.
Let’s look at how monthly premiums change based on the coverage amount.
Typical Monthly Premiums by Coverage Size (Age 70, Non-Smoker)
| Coverage Amount | Estimated Monthly Premium |
| $5,000 | $30–$50 |
| $10,000 | $50–$75 |
| $15,000 | $75–$110 |
| $20,000 | $95–$135 |
Premiums increase with age. Smokers and individuals with health issues can expect to pay 20%–50% more.
How Much Coverage Do You Really Need?
If you’re planning a direct cremation with no service, a $5,000 policy may be enough.
If you want a cremation with a memorial service, urn, and basic arrangements, aim for $8,000 to $12,000.
If you want to cover final expenses and leave extra to help with unpaid bills, travel for family, or small debts, consider $15,000–$20,000.
Keep in mind:
- The money goes to your beneficiary, not a funeral home, so they can use it however needed.
- Cremation costs vary by state and service provider. It’s worth checking local prices before picking a number.
Don’t Overbuy, Buy Smart
While it might be tempting to go with a $25,000 policy “just in case,” remember: the more coverage you choose, the more you pay monthly. And if it becomes unaffordable, the policy could lapse, leaving you without coverage when your family needs it most.
Choose what fits your actual plan and your real budget.
Cost Guidelines and Tips for Saving Money
Cremation insurance is one of the most affordable and accessible types of life insurance, but only if you approach it the right way. Many seniors end up paying more than they need to, simply because they didn’t have the right information when they started.
Here are some proven tips and cost-saving guidelines to help you get the best value without compromising coverage:
1. Apply Sooner Rather Than Later
This is one of the most important rules. Every year you wait, your monthly premium goes up. Even waiting just one or two years can mean paying 30% to 50% more.
For example:
- A healthy 65-year-old might pay $42/month for $10,000 in coverage
- That same person at 75 could pay $70/month, for the exact same policy
And once you’re in your 80s, your choices narrow, and the rates climb quickly.
2. Choose Simplified Issue If You Qualify
If you’re in decent health, always try for simplified issue coverage. It usually comes with:
- Lower monthly payments
- Immediate full coverage (no waiting period)
- A wider selection of carriers and policies
Guaranteed issue is great for people with serious health conditions, but it’s more expensive and includes a 2-year waiting period for natural causes.
3. Stick With Reputable, Senior-Focused Insurance Companies
Not all carriers are created equal. Some have low rates, but terrible service, slow payouts, or confusing terms. Others market aggressively to seniors but sneak in rising premiums.
To avoid problems:
- Work with a licensed, independent advisor
- Check the carrier’s financial strength rating
- Read the fine print about payout timelines and exclusions
- Ask if the premium is fixed for life (it should be)
4. Avoid Overinsuring
It’s easy to think you need more coverage “just in case.” But cremation is relatively affordable compared to burial. Unless you’re trying to leave a small inheritance or cover outstanding debts, $7,000–$15,000 is more than enough for most cremation plans.
More coverage = higher premiums. Don’t pay for what you won’t use.
5. Consider Monthly vs. Annual Payment Options
Some companies offer a small discount if you pay annually instead of monthly. If you can afford to pay once a year, ask your advisor about the price difference.
It’s not huge, but over time, it adds up.
6. Make Sure the Policy is Whole Life, Not Term
Some low-cost policies are actually term life insurance, which expires after 10, 20, or 30 years. If you outlive the policy, your family gets nothing.
Cremation insurance should always be whole life, meaning it lasts as long as you do.
Real Examples of Cremation Insurance Costs (Case Studies)
To give you a clearer picture of what cremation insurance actually costs, here are a few real-world examples based on common scenarios. These aren’t exact quotes, but they reflect actual pricing ranges we see every day from trusted final expense insurers.
Case Study 1: Mary, Age 72, Non-Smoker, Good Health
- Coverage Amount: $10,000
- Policy Type: Simplified issue (no exam, just health questions)
- Monthly Premium: $62
- Why it worked: Mary doesn’t have major health issues and takes a few common medications for blood pressure. She qualified for full, immediate coverage and locked in a fixed premium for life.
Case Study 2: John, Age 80, Smoker, COPD History
- Coverage Amount: $10,000
- Policy Type: Guaranteed issue (no questions, no exam)
- Monthly Premium: $142
- Waiting Period: 2 years for natural causes
- Why it worked: Because of his age and COPD, John was not eligible for simplified coverage. His guaranteed issue policy was more expensive, but it ensured his family wouldn’t face cremation costs if he passed away unexpectedly.
Case Study 3: Denise, Age 65, Non-Smoker, Great Health
- Coverage Amount: $15,000
- Policy Type: Simplified issue
- Monthly Premium: $58
- Why it worked: Denise applied early and got preferred pricing. Her great health allowed her to secure a higher amount of coverage for less than what most 70-year-olds would pay for $10,000.
Case Study 4: Robert, Age 75, Smoker, High Blood Pressure
- Coverage Amount: $7,000
- Policy Type: Simplified issue with partial underwriting
- Monthly Premium: $81
- Why it worked: While Robert smokes and has high blood pressure, he hasn’t had major health events like heart attack or stroke. He was still able to qualify for simplified coverage with a slightly higher rate.
These examples show that:
- Health and smoking status have a major impact
- Starting earlier means more options and lower costs
- Even with health conditions, you can still qualify for meaningful coverage
- Smaller policies (like $7,000–$10,000) can offer huge relief to families facing final expenses
What You Should Expect to Pay and Why It’s Worth It
Cremation insurance is one of the simplest, most thoughtful financial decisions you can make, especially if your goal is to protect your family from unexpected costs.
Depending on your age, health, and coverage amount, you can expect to pay anywhere from:
- $30–$50/month in your 50s or early 60s
- $60–$90/month in your 70s
- $120–$180/month in your 80s (especially for guaranteed issue)
For most seniors, a $7,000 to $12,000 policy offers the right balance, enough to cover cremation, an urn, and a basic memorial without overspending.
It’s not about leaving behind a fortune. It’s about leaving behind clarity, peace of mind, and a way for your family to handle things without stress or financial strain.
Even a small policy can prevent:
- Your children from taking on credit card debt
- Delays in cremation or service due to lack of funds
- Emotional decisions made under pressure
The earlier you take action, the more affordable your policy will be, and the more options you’ll have.
At the end of the day, cremation insurance is less about numbers and more about love. It’s a quiet but powerful way to say, “I’ve got this covered.”
Next steps:
- Decide how much coverage you really need based on your cremation plans
- Speak to a licensed advisor or broker who specializes in senior policies
- Apply while your health and age still give you more choices
Because peace of mind shouldn’t be expensive, and planning ahead shouldn’t be complicated.
📞 Call Liberty Financial Group at 888.414.3873
