Final Expense/Burial Insurance In Michigan Overview
Are you currently living in the state of Michigan and thinking about covering your funeral or a loved ones? Many have started to think about the costs involved in a funeral.
A basic funeral can easily cost over $7,000. When someone passes, if they do not have an insurance policy, the family will have to scramble to come up with thousands in a matter of weeks.
Did you know your Social Security will not cover your funeral? Your end-of-life expenses must be covered by you or a relative. Social Security will only pay out a $255 death benefit.
That will barely put a dent in your funeral and other end-of-life expenses.
So, how can you cover your funeral? What amount of coverage should you get? And what details should you pay close attention to? I will answer those questions in this article.
Read on to learn more.
NOTE: For a free burial insurance quote specific to the state of Michigan click the Get A Quote Button or call 888 626 0439 and one of our friendly life insurance specialists would be happy to provide you with answers and a free quote in less than five minutes.
Quick Navigation Article Links
- How Does Burial Insurance/Final Expense Insurance In Michigan Work?
- What Does Burial Insurance Cover?
- Final Expense Insurance Versus Life Insurance
- Average Funeral Cost In Michigan
- Funeral Price Inflation In Michigan
- If I Live In Michigan Is Funeral/Burial Insurance Worth Having
- What Happens If I Do Not Have A Burial Plan In Michigan
- Is There An Age Limit For Burial Insurance
- Our Favorite Burial Insurance Providers in Michigan
- What Is The Cheapest Burial Insurance Plan In Michigan
- How Much Burial Insurance Coverage Should I Get
- How Do I Buy A Burial Insurance Policy
- Terms To Understand When Talking About Insurance
How Does Burial Insurance/Final Expense Insurance In Michigan Work?
Burial insurance is a type of insurance that is used to cover the cost of a funeral, memorial, and other end-of-life expenses. This plan pays out a smaller death benefit meant to ease the financial burden on the survivors.
This type of insurance protects your family from excessive stress and debt immediately after you pass. Looking into this kind of insurance plan is a GREAT start to proactively protecting your loved ones.
Preparing for your funeral and end-of-life expenses ahead of time is recommended for all individuals, especially parents. Your loved ones will be very grateful for the effort and provisions you put into place.
Final expense insurance can also be called burial insurance or funeral insurance. All three of those terms will be used in this article to describe an insurance policy that covers burial expenses.
A burial insurance policy can cover one individual or their whole family. Each insurance provider will offer different features to their customers.
In Michigan, burial insurance is usually sold through brokers or insurance agents. Some funeral homes are licensed to sell burial insurance. Also, we at BuyLifeInsuranceForBurial.com can help, of course!
After you understand your options and choose a burial insurance plan, you will need to select a beneficiary. This is a person whom you trust to use the benefits for your funeral. The person should be healthy, trustworthy, and competent.
What Does Burial Insurance Cover?
Funeral insurance plans cover any expenses directly related to someone’s death. So, transport of the body, preparation, casket, memorial service, and burial can be covered by this plan.
Burial insurance can even go so far as to cover unpaid medical bills and leftover debts.
Having burial insurance gives the beneficiary peace of mind and allows them to take care of any financial loose ends.
Each plan may have different coverage limits and could include or exclude certain things. Make sure to read through each plan you are considering carefully. Ask the agent if you do not understand something.
Final expense insurance plans may cover:
- Cremation costs
- Burial costs
- Preparation Of The Body
- Funeral expenses
- Service Expenses
What’s The Difference Between Final Expense Insurance Versus Life Insurance?
Final expense insurance and life insurance are pretty similar. They both pay out benefits upon the policy holder’s death to assist in covering expenses.
The main difference between those two plans is the level payout. Life insurance pays a much higher benefit than burial insurance. Life insurance is meant to cover the lost income of the deceased. While burial insurance is only meant to cover expenses directly related to the person’s death.
So life insurance is money in your family members’ pockets. Whereas funeral insurance is money that covers your funeral expenses. Funeral insurance pays out a lower benefit.
If your life insurance plan offers final expense insurance it may be termed as a death benefit. Read through the policy to confirm your plan offers this option.
Final expense insurance usually has less face value than a life insurance plan because it is only meant to cover expenses involved in a funeral and burial.
Average Funeral Cost In Michigan
The national average funeral cost for the service, flowers, burial, and plot is $7,000 to $12,000. The national average for cremation and a simple funeral service is $6,000 to $7,000.
Now compare the average funeral in Michigan in 2021 which was $7,922. In Michigan, the average cremation funeral in 2021 cost $6,529.
Keep in mind the casket, urn, headstone, burial plot, flowers, and transportation are separate from the service fees. These other expenses will cause your final price to go even higher.
Reference this chart to find out the specific products and service costs.
|Transporting the body to the funeral home||$350|
|Preparing the body||$255|
|Casket (simple wood casket)||$2,995|
|Urn (simple urn)||$300|
|Burial Plot (basic)||$1000|
|Funeral Facilities For Ceremony||$500|
Other expenses to consider when someone passes are travel expenses for the family and legal expenses if your family needs to hire a lawyer.
Even the simplest of funerals can add up to thousands of dollars. If you go for an all-out funeral with a large service.
Average Funeral And Cremation Service Fees In Michigan By County
|Service Choice||Average Cost|
|Direct Cremation Service Fee||$2,780|
|Immediate Burial Service Fee||$4,440|
|Cremation Memorial Service Fee||$7,750|
|Full Burial Service Fee||$9,033|
|Service Choice||Average Cost|
|Direct Cremation Service Fee||$1,942|
|Immediate Burial Service Fee||$3,444|
|Cremation Memorial Service Fee||$6,327|
|Full Burial Service Fee||$7,787|
|Service Choice||Average Cost|
|Direct Cremation Service Fee||$2,333|
|Immediate Burial Service Fee||$4,183|
|Cremation Memorial Service Fee||$6,592|
|Full Burial Service Fee||$7,771|
|Service Choice||Average Cost|
|Direct Cremation Service Fee||$2,847|
|Immediate Burial Service Fee||$4,542|
|Cremation Memorial Service Fee||$7,836|
|Full Burial Service Fee||$9,135|
When calculating your funeral costs keep in mind the above prices are just averages. If you want a larger service or an upgraded product it will cost more.
However, that’s not the end of the cost discussion. Inflation is another factor to consider. Yup, that’s what I said, inflation.
Funeral Price Inflation In Michigan
Every year, the cost of products and services increases. Funerals are also subject to the cost increases.
Funeral expenses rise at an average of roughly 3.5% to 6.4% a year. So if a very basic funeral costs $7,000 in 2021, in 2031 it would cost around $ 11,000.
However, since the pandemic, the cost of caskets has increased 20% to 30%. This is because they are usually shipped overseas. It is now more challenging to find the materials and ship a finished casket. The rate of inflation can jump very quickly.
Take a look at this chart which shows the estimated average inflation we expect to see in the next 30 years.
With average yearly inflation of 5%, by 2050, you can expect to pay roughly $28,000 for a funeral!
So the takeaway for anyone reading is that you need to purchase a funeral insurance plan that will cover the cost of a funeral today and in the future. Good preparation and planning mean you are ready for tomorrow’s problems!
If I Live In Michigan Is Funeral Insurance Worth Having?
As we have considered the cost of funerals and cremations in Michigan can easily reach $7,000.
Having burial insurance can give you peace of mind. Having an insurance policy will reduce the burden and stress on your loved ones in the case of your death. You can rest assured that your family will not have to go into debt to cover your funeral expenses.
But what if you already have some money saved to cover your funeral?
Well, let’s consider, a basic funeral is $7,000. Legal fees and settling an estate can easily cost you another $2,000 or more. Any unpaid medical bills will need to be settled. What about any unpaid debts or credit card balances? Are you still making car, phone, or mortgage payments? Those will need to be covered. What if you get sick before you pass and need to use your current savings?
I’m not trying to be a downer, but it is important to acknowledge the many unknown expenses and situations that could catch you or your family by surprise.
Relying on your own savings is like betting you will pass with nothing going wrong, no debt, no inflation, and no surprise expenses. It is a considerably higher risk decision that purchasing a burial insurance plan.
Consider the following factors when deciding if you want burial insurance:
- Your current financial situation
- Any current life insurance plan you may have
- Your family members financial situation
- The services and items you want at your funeral. As mentioned before a very simple funeral will easily reach $6000. A large funeral with many upgrades will easily reach $20,000.
- The money you have already saved/set aside
- Legal and estate settlement costs
- Unpaid debts
- The unknown expenses and fees you are not aware of. These can catch surviving family members by surprise.
Once you know a ballpark number for your funeral expenses you can consider the financial impact your funeral would have on your family.
If you find after calculating your funeral expense, the expense is more than you are prepared for, purchasing a burial insurance plan is a VERY wise idea!
What Would Happen If I Do Not Have A Burial Insurance Plan In Michigan?
Say you do not get burial insurance and you pass away. What would happen?
Well, that depends on your estate and the people in your life. If you have relatives they would need to collect over $7,000 in less than a few weeks. They would be scrambling to find the funds and understand how to set up your funeral.
They would have to live up to their work responsibilities, family responsibilities, and take care of other personal task WHILE collecting money for your funeral and setting it up.
Does that sounds like a nice situation to be in when your loved one has just passed? Obviously not.
If your family cannot collect that amount needed to cover your funeral expenses then they will have a few options.
- They could cremate the remains and the funeral home would dispose of them. They would have to forgo a service and any upgrades.
- If there is any money left in your estate the family could use it to cover the expenses.
- They could go into debt to cover the expenses. They could take out a loan or a funeral loan. A funeral loan has high-interest rates.
- They could find an assistance program in their state that helps cover the cost of your funeral.
What if you have no family members or your family cannot find a way to cover your funeral. In this situation your body would have to be signed over to the state or even abandoned. At this point how you are buried is not up to you or your family.
You will be buried in the cheapest materials how and where the state decides.
Burying your loved one the way they would have wanted can help the family to grieve and process the loss. It is best to avoid leaving your family in this situation.
What Is A Pauper’s Grave?
A pauper’s grave is the term used when a body is abandoned, unidentifiable, or signed over to the county/state.
The body will either be buried in a plywood casket or cremated and the remains disposed of. The final method and location of the body is decided by the local government. A person buried by the public may have to share the same burial plot with someone else.
The county could decide to bury the body in a mass grave. Unfortunately, mass graves are still used when there is not enough room to bury each body separately. This is by far the worst way to bury any loved one and we all want to avoid being in this situation or putting those we love in this situation.
Imagine for a moment, your loved ones having to sign a document that gives up control over how you are buried. It will be explained to them that you may have to share a grave with another person. Can you imagine the worry and regret the family will feel over how the situation turned out.
It is best, it at all possible to avoid this situation.
Click this link to read more about a paupers grave.
Is There An Age Limit For Burial Insurance?
The general age limit for those who can purchase a burial insurance policy is between the ages of 45-85. Most companies will accept people within or around those ages. Their age limits can vary by 5 to 10 years but they are generally within that range.
If you are outside of those ages and would like to be insured, you still have options. There are many companies that can insure someone from 0 to 90 or even older. The cost or premium may be different but it is completely possible.
If you are looking for burial insurance coverage contact us and we will provide you with a free quote.
Our Favorite Insurance Providers In Michigan
Our favorite insurance providers in Michigan are:
- AIG American General
- Mutual Of Omaha
Prosperity will accept individuals between 50 to 80 years of age and give a benefits range of $1500 to $35,000. This coverage would be sufficient for Michigan. They will accept bank draft, debit/credit, and Direct Express payments. They have a covenant virtual application that is quick and easy to complete.
They offer first-day full coverage and partial first-day full coverage. This means you have the option to activate your coverage the same day you purchase the plan. You get the decision when the virtual application is submitted.
They have a two-year look back on certain medical conditions. This could affect your coverage or insurability if you have had any serious health issues in the last couple years. .
Fun Fact: You can vape, chew, dip, smoke a pipe, or smoke weed and still have coverage.
This is a good provider for moderately healthy to very healthy people.
AIG American General is a guaranteed issue provider, also very good for individuals who may have trouble being insured or have health issues. The age is 50-80 years old, you can complete a paper or electronic application. The e-app is very simple and convenient. It does, however, require an electronic signature.
You do not receive full coverage until two full years have passed. This is usually used as the last carries someone tries when no other company will insure you.
The minimum is $5,000 to $20,000. This is usually the best product on the market for guaranteed issues with competitive rates.
They accept all forms of payment direct express, bank account, and other forms.
Mutual Of Omaha has an age limit is 45 to 85 years old. They offer coverage of up to $2,000 to $40,000. They accept bank drafts only and have a convenient e-app.
The application process is quick and straightforward and can be done online.
They have competitive pricing and a convenient application process. This carrier is a good choice for moderately healthy individuals with no recent/serious health issues.
They do have a two-year look back on cardiac events, and it will accept certain cancer medication use and blood thinner use. As long as diabetes was diagnosed after 50, they may accept you.
The only downside, once you sign up for a policy Mutual Of Omaha will continue to offer you other policies and add-on options. If you want to opt-out of these offers you need to send back a form that opts you out of these promotions.
What Is The Cheapest Burial Insurance Plan In Michigan?
The cheapest burial insurance is based on your health and age. If you are a VERY healthy person who is within the accepted age limits, usually on the younger end of the limit, you will qualify for some of the lowest rates.
Our agents have access to over 15 different insurance providers. This allows us to do the shopping for you to find the best plan for you at the most reasonable price.
Click the Get A Quote Button to find out the cheapest burial insurance available to you or call 888 626 0439 and one of our agents would be happy to provide you with answers and a free quote in less than five minutes.
How Much Burial Insurance Coverage Should I Get?
The best burial insurance plan will cover what a funeral/cremation and all other expenses involved would cost today and in the future. As mentioned before, burial becomes more expensive each year so inflation is a factor you need to consider.
We have seen prices jump as high as 30% for some products and burial-related expenses.
In Michigan, it is a smart idea to have coverage between $10,000 to $20,000, if you are older. If you are younger you need to start with at least $20,000 and slowly increase your coverage periodically. As we saw in the chart, by 2050 it is very likely funerals will cost around $28,000.
Ultimately, your coverage should be enough to cover all your funeral and burial expenses, inflation, and other debts without putting a burden on those you love.
If you want to get a piece of paper and write down the kind of funeral you would prefer, refer to the tables with the prices earlier in the article. Include some room for legal fees, credit card bills, and other debts. Factor in inflation using the chart in this article and then add a few thousand wiggle room.
How Do I Buy A Burial Insurance Policy?
In Michigan you can deal directly with an agent or shop online. Working with an agent is usually a better option because the insurance agent will do the shopping around for you.
We provide insurance assistance and our agents are available to answer any questions you have. Give us a call to get a free quote and learn the options that are available to you.
For a free burial insurance quote specific to the state of Michigan click the Get A Quote Button or call 888 626 0439 and one of our friendly life insurance specialists would be happy to provide you with answers and a free quote in less than five minutes.
FAQs About Getting Burial Insurance In Michigan
What If I Have Preexisting Health Issues, Can I Still Be Covered?
100%, anyone can be insured. All we need to know is your basic personal information, medical history, and a few other relevant details, once we have that we can match you with the best plan for you.
Even if you have had health issues recently, you will qualify for some kind of final expense insurance.
There are Guaranteed Acceptance policies. These policies ask no questions and guarantee coverage acceptance. Contact one of our agents by clicking the Get A Quote Now button or calling 888 626 0439.
What Questions Will I Be Asked?
When purchasing a burial insurance plan you will need to fill out a form to apply for coverage. This form will collect your personal information and ask you a few general questions regarding your health.
Some applications have as little as two questions while other application forms ask upwards of 10 questions.
What Is Guaranteed Acceptance/Guaranteed Issue?
Guaranteed Acceptance means a provider will accept anyone when they apply. This is a great option for people who have many serious health issues and are advanced in years. This plan 100% guarantees your insurability.
No questions asked, as soon as your application you will be accepted. Not every provider offers guaranteed acceptance. Guaranteed Issue is a good plan for someone with many health issues.
What Else Should I Prepare In The Case Of My Death In Michigan?
Besides preparing for the cost of your funeral and end of life expenses, putting a few other basics in place is wise. Preparing a will, funeral wishes documents, and simplifying your estate can go a long way. Getting your affairs in order can save your family years.
Make sure to visit a local lawyer so your legal documents meet the Michigan laws.
The basic things to consider are:
- Will, clearly delegate assets.
- Funeral Expenses, provide savings, burial insurance, or pre-need insurance.
- Estate settlement costs and legal fees
- Assets you currently own and the upkeep involved.
- Collect your passwords and important documents in a safe place that can be located by a trusted family.
Can I Have Multiple Burial Insurance Policies At The Same Time?
The answer is YES. There are no legal limitations to the number of life insurance and/or burial insurance policies you can hold. As you grow and your circumstances change your goals may also change, insurance companies understand this.
You can decide to purchase a higher coverage insurance policy later in life to meet your needs.
You can own a whole life insurance policy, an additional policy to cover your income and family’s needs, as well as a final expense policy. The amount of policies you hold is up to you.
The only factors you will need to consider are the amount all your policies add up to. You need to financially qualify for the level of combined coverage you have. If you have combined benefits that are WAY too high above your qualifications, insurance providers will be more cautious and ask more questions.
You may decide to purchase a policy rider instead of a completely separate insurance policy. This can reduce the hassle involved.
Terms To Understand When Talking About Burial And Final Expense Insurance
Death Benefit – a one-time payment from your life insurance provide upon the policy holder’s death. In some cases, this can be considered Final Expense insurance but not always.
Beneficiary – the person you designate the benefits and payouts to go to.
Lapsed – when the policyholder fails to pay the premium.
Term – the period you are covered by your insurance policy. This could be 2 weeks for travel insurance or 45 years for life insurance.
Premium – the amount you are required to regularly pay the insurance provider to keep your coverage.
Policy Rider – extra coverage you can add to an existing policy. If your circumstances change, getting a policy rider will allow you to increase your coverage.
Term Life Policy – this is life insurance that provides insurance coverage at a fixed payment rate for a set period. You lock in the premium you will pay for an agreed-upon amount of time.
Whole Life Insurance – a life insurance policy that will stay in force for the entire life of the policyholder. The premiums are fixed and death benefits are not usually offered with this insurance plan. Sometimes called straight life, ordinary life, permanent life insurance, or whole of life assurance.
Universal Life Insurance – this is a type of insurance policy mainly sold in the United States. This is permanent insurance that stays active as long as the policyholder pays the premiums. This policy offers flexible premiums and death benefits. This insurance also has a cash value factor.
Pre-need Insurance – this is an option where an individual pays a funeral home for their funeral costs before they pass. The individual can choose their service, casket or urn, and other details.
Insurability – this refers to whether or not an individual qualifies to be insured under a policy.