How Much Does Guaranteed Issue Burial Insurance Cost?

Last Updated on: March 22nd, 2025

Reviewed by Kyle Wilson

How Much Does Guaranteed Issue Burial Insurance Cost

Many people don’t realize how expensive funerals can be until it’s too late, leaving their loved ones with a significant financial burden. Guaranteed issue burial insurance offers a way to secure coverage without medical exams or health questions, making it an accessible option for those with pre-existing conditions. But how much does it actually cost? Understanding the factors that influence premiums can help you make an informed decision. In this guide, we break down the costs, benefits, and key considerations to help you determine if guaranteed issue burial insurance is the right choice for you.

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Understanding Guaranteed Issue Burial Insurance

Guaranteed issue burial insurance is a special type of life insurance designed to cover end-of-life expenses without requiring a medical exam or health questions. It ensures that individuals, regardless of their health condition, can secure coverage to help ease the financial burden on their loved ones.

What Is Guaranteed Issue Burial Insurance?

This is a life insurance policy that provides coverage specifically for funeral and burial expenses. Unlike traditional life insurance, there are no medical exams or health-related questions required, making it accessible to almost anyone who applies. The policy offers a fixed death benefit, which is paid to beneficiaries to cover final expenses.

How Does It Work?

Guaranteed issue burial insurance works by providing a set amount of coverage, typically between $2,000 and $25,000. The beneficiary receives the payout upon the policyholder’s passing, which can be used for funeral costs, outstanding debts, or other end-of-life expenses. However, most policies include a waiting period, usually two years. If the insured passes away within this period, only the premiums paid plus interest will be refunded instead of the full benefit amount.

Who Should Consider This Type of Insurance?

This type of insurance is ideal for seniors, individuals with pre-existing health conditions, or those who have been denied traditional life insurance. It’s also a good choice for anyone who wants to ensure their funeral costs are covered without placing a financial burden on their family. Since approval is guaranteed regardless of health, it offers peace of mind for those with limited insurance options.

Factors That Affect the Cost of Guaranteed Issue Burial Insurance

The cost of guaranteed issue burial insurance varies based on several key factors. Since this type of policy does not require a medical exam, insurers consider other aspects when determining premiums. Understanding these factors can help you choose a policy that fits your budget.

Age and Health Condition

Age is one of the biggest factors in determining the cost of guaranteed issue burial insurance. The older you are when you apply, the higher your premiums will be. Although this policy does not require health screenings, insurers set rates based on the assumption that older applicants pose a higher risk. While health conditions do not affect approval, they may still influence pricing through risk-based premium calculations.

Coverage Amount and Policy Limits

The amount of coverage you choose directly impacts your premium. Policies typically offer coverage amounts ranging from $2,000 to $25,000. Higher coverage amounts come with higher premiums. If you’re looking for an affordable option, selecting a lower coverage amount may be a better fit, but it’s essential to ensure it covers your anticipated final expenses.

Insurance Provider and Policy Terms

Different insurance providers offer varying premium rates and policy terms. Some companies provide more competitive rates, while others may include additional fees or stricter waiting periods. Comparing multiple insurers can help you find the best policy for your needs. Additionally, policies with immediate payout options may have higher premiums, whereas those with graded benefits or waiting periods may be more affordable.

Average Cost of Guaranteed Issue Burial Insurance

The cost of guaranteed issue burial insurance varies depending on age, coverage amount, and the insurance provider. Since these policies do not require a medical exam, premiums tend to be higher than other types of burial insurance. Understanding the average costs can help you determine if this option fits your budget.

Monthly Premium Estimates by Age Group

Premiums for guaranteed issue burial insurance increase with age. Here’s a general breakdown of estimated monthly costs based on different age groups:

50-60 years old: $25 – $50 per month
61-70 years old: $45 – $80 per month
71-80 years old: $75 – $150 per month
81+ years old: $120 – $250 per month

Younger applicants pay lower premiums, so purchasing coverage earlier can help secure a more affordable rate.

Cost Differences Based on Coverage Amount

The more coverage you choose, the higher your monthly premium will be. Policies typically range from $2,000 to $25,000 in coverage. Here’s a rough estimate of how coverage amount affects cost:

$5,000 coverage: $20 – $60 per month
$10,000 coverage: $40 – $100 per month
$20,000 coverage: $80 – $180 per month

Choosing a lower coverage amount can keep premiums affordable, but it’s essential to ensure it covers all necessary final expenses.

How Premiums Compare to Other Burial Insurance Plans

Guaranteed issue burial insurance typically costs more than other types of burial insurance because there are no medical exams or health questions. Compared to simplified issue burial insurance, where applicants answer a few health-related questions, guaranteed issue policies can have premiums that are 20-50% higher.

How to Find Affordable Guaranteed Issue Burial Insurance

Guaranteed issue burial insurance can be expensive, but there are ways to find a policy that fits your budget while still providing adequate coverage. By comparing options, selecting the right coverage amount, and avoiding common mistakes, you can secure a policy that offers financial protection without overspending.

Comparing Quotes from Different Providers

Insurance costs vary between providers, so it’s essential to shop around before making a decision. Here’s how you can find the best deal:

Request quotes from multiple insurance companies to compare premiums and benefits.
Check for additional fees or policy riders that could impact overall costs.
Look at customer reviews and financial ratings to ensure you’re choosing a reputable provider.
Consider working with an independent insurance agent who can provide unbiased comparisons of different policies.

Choosing the Right Coverage for Your Needs

Selecting the right coverage amount is key to keeping your premiums affordable while ensuring your final expenses are covered. Here’s what to consider:

Calculate expected funeral and burial costs, including any outstanding debts you want covered.
Avoid over-insuring—choosing a policy that exceeds your actual needs will only increase your premiums.
Consider inflation and future costs to make sure your policy remains sufficient over time.

Many insurers offer coverage amounts ranging from $2,000 to $25,000, so finding a balance between affordability and sufficient protection is crucial.

Avoiding Common Mistakes When Buying a Policy

Many people overpay for guaranteed issue burial insurance or end up with policies that don’t fully meet their needs. Avoid these common mistakes:

Not comparing multiple providers: This can lead to overpaying for similar coverage.
Buying more coverage than necessary: Higher coverage amounts result in higher premiums.
Ignoring policy exclusions and waiting periods: Some policies have a two-year waiting period before full benefits are paid.
Not checking financial stability: Choose an insurer with a strong rating to ensure they’ll be around when your family needs them.

Is Guaranteed Issue Burial Insurance Worth the Cost?

Guaranteed issue burial insurance provides financial protection for end-of-life expenses, but is it the right choice for everyone? While it offers coverage without medical exams, it comes with higher premiums and waiting periods. Understanding the benefits, drawbacks, and alternatives can help you decide if this policy is worth the cost.

Benefits of Choosing This Type of Insurance

Guaranteed issue burial insurance has several advantages, especially for individuals with health concerns:

No Medical Exams or Health Questions: Approval is guaranteed, making it an option for those with pre-existing conditions.
Provides Financial Security for Loved Ones: Ensures that funeral expenses and other final costs don’t become a burden.
Fixed Premiums: Monthly costs remain the same throughout the policy’s duration.
Simple Application Process: Unlike traditional life insurance, applying is quick and hassle-free.

Potential Drawbacks to Consider

While guaranteed issue burial insurance is accessible, it’s important to weigh the downsides:

Higher Premiums: Since insurers take on more risk by not requiring medical exams, premiums are typically more expensive than other burial insurance options.
Limited Coverage Amounts: Policies usually range from $2,000 to $25,000, which may not be enough for all final expenses.
Waiting Period: Most policies have a two-year waiting period, meaning if the policyholder passes away during this time, the full benefit won’t be paid out. Instead, beneficiaries typically receive a return of premiums plus interest.
Not the Most Cost-Effective Option: Depending on your health and financial situation, other types of insurance may offer better value.

Alternatives to Guaranteed Issue Burial Insurance

If guaranteed issue burial insurance doesn’t seem like the right fit, consider these alternatives:

Simplified Issue Burial Insurance: Requires a few health questions but offers lower premiums and no waiting period.
Prepaid Funeral Plans: Allows you to pay for funeral expenses in advance through a funeral home.
Traditional Life Insurance: Term or whole life policies can provide larger payouts at lower costs if you qualify.
Personal Savings or Investments: Setting aside funds in a dedicated savings account for funeral expenses may be a better financial strategy for some.

Conclusion

Guaranteed issue burial insurance can be a valuable option for those who need coverage without medical exams or health questions. While it provides financial security for final expenses, it often comes with higher premiums and waiting periods. Comparing different policy options, considering alternative funeral funding methods, and understanding the total cost can help you make the best decision. Before committing, assess your financial situation and coverage needs to ensure you choose a plan that offers the best value for your loved ones.

FAQs

What is the average monthly premium for guaranteed issue burial insurance?

The average monthly premium varies based on factors like age, coverage amount, and the insurance provider. Generally, premiums range from $25 to $200 per month, with older applicants paying higher rates due to increased risk.

Can I lower my burial insurance costs?

While guaranteed issue policies have fixed rates, you can reduce costs by comparing quotes from multiple providers, choosing a lower coverage amount, and selecting a policy with competitive pricing. If you qualify, simplified issue burial insurance may offer lower premiums without requiring a medical exam.

Does guaranteed issue burial insurance have a waiting period?

Yes, most guaranteed issue policies include a two-year waiting period. If the policyholder passes away during this time, the full death benefit is not paid out. Instead, beneficiaries receive a refund of paid premiums plus interest. Some policies may offer graded benefits, where a percentage of the payout is available within the first two years.

What happens if I stop paying my burial insurance premiums?

If you stop paying your premiums, your policy will lapse, and you will lose coverage. Some insurers offer a grace period (typically 30 days) to catch up on missed payments. If the policy lapses, you may need to reapply for coverage, potentially at a higher rate or with new waiting periods.

Iqra Malik

Senior Writer & Licensed Life Insurance Agent

Iqra is a dynamic and insightful senior writer with a passion for life insurance and financial planning. With over 8 years of hands-on experience in the insurance industry, Iqra has earned a reputation for delivering clear, actionable advice that empowers individuals to make informed decisions about their financial future. At Burial Senior Insurance, she not only excels as a licensed insurance agent but also as a trusted guide who has successfully advised over +1500 clients, helping them navigate the often complex world of life insurance and annuities. Her articles have been featured in top-tier financial publications, making her a respected voice in the industry.